Euronews reported, citing a European Commission document, that ExxonMobil affiliates are contesting an EU carbon-storage obligation under the Energy Charter Treaty, as the bloc's latest projection remains below its 2030 capacity target.
The cited reports have not made the challenge papers public, leaving the filing's precise terms unverified. Reuters reported that the Commission planned a response, relaying the Financial Times' account of an internal Commission memo.
The EU's Net-Zero Industry Act sets a goal of at least 50 million tonnes of annual carbon dioxide injection capacity by 2030. The European Commission says 44 oil and gas producers must contribute, with each obligation based on the producer's share of EU output from Jan. 1, 2020, through Dec. 31, 2023. The Commission says the system is intended to make storage available ahead of demand. Companies can develop sites or arrange for other developers to provide capacity, including through financial contributions.
ExxonMobil argued that the requirement expects companies to provide storage even though, in its view, the business case for capturing and moving carbon dioxide is not yet viable. Reuters carried the company's position and reported its warning that the rules could raise energy costs for consumers.
In a report to the Commission dated June 30, 2026, ExxonMobil Producing Netherlands B.V. said Commission Decision (EU) 2025/1479 had identified it as an obligated entity with an annual requirement of 0.333 million tonnes. The company said it was evaluating partnerships and agreements with storage developers and was not developing capacity directly at the time.
The Commission's 2026 progress report projected 27.1 million tonnes of annual injection capacity by 2030, based on updated national energy and climate plans. That is projected capacity, not capacity already achieved. The Commission said its estimate was partial because submissions from member states and obligated entities were incomplete.
The EU's withdrawal from the Energy Charter Treaty took effect June 28, 2025, according to the European Commission. The treaty provides for some protections to continue for 20 years after withdrawal; a separate EU agreement says it cannot serve as a basis for arbitration between an investor from one member state and another member state or the EU. The Commission said it will report again by June 30, 2027, including an assessment of the market for injection capacity.
