EU allocates about €120 million to pre-commercial CCS testing: directions Taiwan can consider

1. Carbon management funding in the EU work programme

The European Commission's Horizon Europe 2026–2027 Work Programme includes five Industrial Carbon Management topics worth about €119.8 million. Citing Carbon Herald, CNA reported on October 13 that compared with 2025 the funding has shifted toward pre-commercial storage readiness, regional infrastructure and integrated value chains.[1][2] Only one of the five topics is a Research and Innovation Action (RIA); the others are Innovation Actions (IA) or a Coordination and Support Action (CSA). The storage topic targets technology readiness level (TRL) 7–8, direct air capture TRL 7 and regional clusters TRL 6–8.[3][4]

The Net-Zero Industry Act requires the EU to have at least 50 million tonnes a year of CO₂ injection capacity by 2030, and the Commission estimates about 250 million tonnes a year will need to be captured and permanently stored from 2040.[5] This round therefore focuses on deployment conditions: whether formations can take injection, whether emitters in one industrial area can share transport, and whether tariff and liability rules can support cross-border transport.

2. Budgets and scope of the five topics

Source: Horizon Europe 2026–2027 Work Programme, Parts 7 and 8.[3][4]

The storage topic allows grants to pay for drilling, completion, logging and injection tests, and applicants must work with national authorities to show a site can legally be used for storage.[4] Two topics, worth €68.8 million combined, closed in the first half of 2026. The roughly €120 million is the two-year total, not new money announced in October; the remaining open calls, about €51 million, fall in 2027.[3][4]

3. Directions Taiwan can consider

1. Storage sites

On April 1, 2026 the Ministry of Environment approved CPC's Tiechenshan cross-ministry CCS pilot, with injection in three phases reaching cumulative totals of 10,000, 100,000 and 300,000 tonnes. Each phase needs an approved results report before the next, the project runs three years, and CO₂ must be captured domestically.[6] Taipower's Taichung storage test site plans about 2,000 tonnes a year, 30,000 tonnes over 15 years.[7]

The 2023 CCUS key strategy action plan estimated baseline CCUS reductions of about 1.74–1.79 million tonnes in 2030, assuming Taipower and CPC storage pilots together store 1 million tonnes a year.[8] The two approved sites' design volumes total about 100,000 tonnes a year, about one-tenth of that assumption. The EU's €25 million supports about five site assessments at once, an approach Taiwan could draw on as it scales up storage.[4]

2. Transport and CO₂ supply

Chain costs weigh heavily on any single plant, which is why the EU puts €30 million into regional clusters. At Tiechenshan, CO₂ is to be captured from nearby emitters, liquefied and trucked to the site.[9] The Liberty Times reported that CPC has talked with power, steel and semiconductor companies about CO₂ supply, and that some companies prefer to pay the carbon fee because it was lower than expected and offers reductions.[10] The action plan said pipelines, transport and storage, and leak monitoring need standards; most storage potential lies off the west coast, and transport options for eastern emitters are still being studied.[8] The EU cluster topic's planning of sources, shared transport and matching storage sites can inform Taiwan's regional planning.

3. Monitoring and standards

On August 25, 2026 the ministry issued the 30-article Regulations for CO₂ Storage after Capture, with exploration, environmental impact assessment and approval in sequence. Stored CO₂ streams must be at least 95% pure, monitoring results are reported quarterly, CO₂ concentration and seismic data are published online in real time, wells are monitored for 20 years after closure, and operators must provide financial guarantees and environmental liability insurance each year.[11][12] The rules mainly cover storage-side monitoring, reporting and verification (MRV). The EU's €5 million topic on transport tariffs, third-party access, cross-segment liability and CO₂ quality specifications[4] can serve as a reference for Taiwan's future rules on multi-source, multi-mode transport.

4. The carbon fee and the GHG Management Fund

For Taiwan's overall carbon pricing design, see "Taiwan Moves to a Dual Track of Carbon Fee and ETS: Rate Review, Pilot Timeline and Impact on Companies". The first carbon fee was collected in June 2026: 461 plants at 240 companies paid NT$4.97 billion, all into the Greenhouse Gas Management Fund. The general rate is NT$300 per tonne, with preferential rates of NT$50 or NT$100.[13][14] The ministry planned about NT$2 billion in grants for corporate and local reduction and adaptation, NT$500 million for loan guarantees and interest subsidies, and ETS platform testing by year-end.[15]

The Subsidy Regulations for GHG Reduction Technologies and Climate Adaptation, in force from July 14, list CCUS as eligible, generally covering up to 50% of project costs, with specific calls to be announced; measures within voluntary reduction plans are excluded.[16][17] CNA put the EU round at about NT$4.3 billion,[1] similar in scale to Taiwan's first-year fee revenue. Following the EU approach, CCUS grants could prioritize shared foundations such as site assessment data, hub planning, and transport and MRV standards, helping CO₂ sources and storage sites move forward together.

5. Upcoming developments

Points to follow: monitoring and injection data after Tiechenshan's first 10,000 tonnes and CO₂ supply contracts; the scope of the fund's CCUS grant calls; work on pipeline, truck and port transport standards, CO₂ quality specifications and cross-segment liability; and the ETS platform test at year-end. Internationally, see "Global Status of CCS report to be released on October 20" (ccs.tw).

References

1. CNA, "歐盟碳管理資金新方向 從研究走向商轉前測試" (EU carbon management funding shifts from research to pre-commercial testing), 13 Oct 2026. https://netzero.cna.com.tw/news/202610130112/
2. Carbon Herald, "EU Unveils €120M Horizon Europe Package For CO2 Storage, DAC, And CCUS Clusters." https://carbonherald.com/eu-unveils-e120m-horizon-europe-package-for-co2-storage-dac-and-ccus-clusters/
3. European Commission, Horizon Europe Work Programme 2026–2027, Part 7: Digital, Industry and Space. https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/wp-call/2026-2027/wp-7-digital-industry-and-space_horizon-2026-2027_en.pdf
4. European Commission, Horizon Europe Work Programme 2026–2027, Part 8: Climate, Energy and Mobility. https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/wp-call/2026-2027/wp-8-climate-energy-and-mobility_horizon-2026-2027_en.pdf; D3-32 topic page: https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/opportunities/topic-details/horizon-cl5-2027-07-d3-32
5. European Commission (DG CLIMA), "The EU's 2030 carbon storage target." https://climate.ec.europa.eu/eu-action/industrial-carbon-management/eus-2030-carbon-storage-target_en
6. National Council for Sustainable Development, Executive Yuan (reposting the Ministry of Environment), "環境部審查通過中油鐵砧山碳捕捉封存試驗計畫" (Ministry of Environment approves CPC's Tiehchenshan CCS pilot project), 1 Apr 2026. https://ncsd.ndc.gov.tw/Fore/News_detail/a1c143e0-dc7c-478d-a169-222af16ca8af
7. CNA, "為2050淨零 台電碳封存試驗場環評初審過關" (Taipower carbon storage test site passes preliminary EIA review for 2050 net zero), 2 Mar 2023. https://netzero.cna.com.tw/news/202303020109/
8. National Science and Technology Council, Ministry of Economic Affairs and Environmental Protection Administration, Taiwan 2050 Net-Zero Transition "Carbon Capture, Utilization and Storage" Key Strategy Action Plan (approved version), Apr 2023. https://www.ey.gov.tw/File/EF63415FAC210FF2?A=C
9. CPC Corporation, Office of the Chief Engineer, "台灣中油 ESG 工程實踐—地熱電廠及碳封存工程案例" (CPC ESG engineering practice: geothermal power plant and carbon storage case studies), Chinese Institute of Engineers. https://www.cie.org.tw/var/file/0/1000/img/2/11409_chapter03.pdf
10. Liberty Times, "CCS生意萌芽》中油鐵砧山碳封存3年灌注30萬噸 找無碳源頭痛" (CCS business emerges: CPC to inject 300,000 tonnes at Tiehchenshan over 3 years but struggles to find CO₂ sources). https://ec.ltn.com.tw/article/breakingnews/5600673
11. National Council for Sustainable Development, Executive Yuan (reposting the Ministry of Environment), "環境部發布「二氧化碳捕捉後封存管理辦法」" (Ministry of Environment issues the Regulations for the Management of Storage after CO₂ Capture), 25 Aug 2026. https://ncsd.ndc.gov.tw/Fore/News_detail/fe0e5586-be90-4b67-a2b1-365f7717c541
12. CNA, "碳封存管理辦法公告 封井後須監測20年" (Carbon storage regulations announced; 20 years of monitoring required after well closure), 25 Aug 2026. https://www.cna.com.tw/news/ahel/202608250285.aspx
13. Ministry of Environment, "我國碳定價制度關鍵里程碑 企業申報碳費總額達49.7億元" (A key milestone for Taiwan's carbon pricing: carbon fees declared by companies total NT$4.97 billion), 3 Jun 2026. https://enews.moenv.gov.tw/moenv-news/zh-tw/News/1628
14. Ministry of Environment Laws and Regulations Database, "碳費徵收費率" (Carbon fee rates). https://oaout.moenv.gov.tw/law/LawContent.aspx?id=GL007921
15. CNA, "環境部首次碳費收入近50億 擬20億供事業及地方減碳" (Ministry's first carbon fee revenue nears NT$5 billion; NT$2 billion planned for business and local decarbonisation), 3 Jun 2026. https://www.cna.com.tw/news/ahel/202606030113.aspx
16. Ministry of Environment Laws and Regulations Database, "溫室氣體減量技術及氣候變遷調適補助辦法" (Subsidy Regulations for Greenhouse Gas Reduction Technologies and Climate Change Adaptation; promulgated and in force 14 Jul 2026). https://oaout.moenv.gov.tw/Law/LawContent.aspx?id=GL007967
17. Ministry of Environment, "環境部發布「溫室氣體減量技術及氣候變遷調適補助辦法」" (Ministry of Environment issues the Subsidy Regulations for Greenhouse Gas Reduction Technologies and Climate Change Adaptation), 15 Jul 2026. https://enews.moenv.gov.tw/moenv-news/zh-tw/News/13683