As European countries strive to decarbonise their economies and reduce greenhouse gas emissions substantially, the capture, transport, and storage of CO2 are emerging as key elements to achieving this goal. Emitters and governments increasingly explore carbon capture and storage as key strategies to reduce emissions, especially in hard-to-abate industrial sectors. Simultaneously, the European Commission’s 2024 “Industrial Carbon Management Strategy” aims to create a cross-country industrial carbon management market by 2030.

The Walloon Energy Commission (CWaPE), the regulator for the pipeline-bound CO2 transport market in the Walloon Region, is obliged to develop a tariff methodology for the connection, use, and ancillary services applicable to the CO2 network and to approve subsequent tariffs. As a landlocked region with substantial industrial clusters but no easily accessible domestic CO2 storage capacity, the Walloon CO2 network is set to export domestically captured CO2 and transit volumes, including from Germany.

To support the development of CO2 transport regulation and support policy for Wallonia, CWaPE commissioned a NERA team led by Directors Dominik Huebler and Leen Dickx and Consultant Leonie Janisch to prepare a comprehensive comparative economic analysis of relevant European jurisdictions. NERA conducted in-depth analyses of the CO2 market, direct and indirect state support mechanisms, and regulatory frameworks for CO2 transport at the EU level as well as in Denmark, Flanders, France, Germany, and the Netherlands. The country case studies were complemented by a more general, theoretical analysis of CO2 transport regulation and pricing models, focusing on matters including the need for market intervention, relevant policy design dimensions, and the interaction between tariffs for domestic and transit volumes.

NERA submitted and presented the final report to CWaPE in early 2025. The report will inform CWaPE’s internal coordination and discussions with key industrial stakeholders and other regulators and authorities.

The full NERA team consisted of Mr. Huebler, Ms. Dickx, Ms. Janisch, Consultant Julien Martin, Research Officer Alberto Sicari, Associate Analyst Bruno Goes, and former colleague Daniel Neuhold.