Austria has released a draft CO2 Storage Act that would lift the country's 12-year ban on underground carbon storage. The proposal sets an annual storage cap of 3 million metric tons through 2029, rising to 7 million tons per year between 2030 and 2034. It also introduces a three-stage permitting process and guarantees third-party access to storage infrastructure. Public consultation runs until October 30, 2026. The move aligns Austrian law with the EU CCS Directive and responds to demand from hard-to-abate industries for regional storage options. The government argues that domestic storage reduces reliance on foreign sites, cuts transport costs, and provides investment certainty for reaching the 2040 net-zero target. However, the draft omits penalty provisions for enforcing Net Zero Industry Act obligations on entities required to offer CO2 injection capacity, a gap market observers have flagged. If enacted, the law would allow project developers to begin exploratory work and front-end engineering for onshore geological storage. The 2033 review of the cap will reassess capacity needs as commercial demand evolves.
