A new policy brief from Clean Air Task Force (CATF) outlines how coordinated government action on carbon capture and storage (CCS) could significantly reduce the cost of industrial decarbonization in Central and Eastern Europe (CEE).
The report argues that by aligning infrastructure development, blending funding tools, and supporting early-stage projects, governments in the region can decarbonise heavy industry while preserving competitiveness and jobs.
The report, Funding Carbon Capture and Storage in Central and Eastern Europe: Strategies for Cost-Effective Deployment, highlights that developing regional CO2 storage could cut transport and storage costs by up to 48%.
Without local storage, governments risk paying millions in extra subsidies – for instance, a project capturing 500,000 metric tons of CO2 annually could require an additional €23.5 million ($27.6 million) per year if storage sites are not developed domestically.
“Carbon capture and storage is essential for CEE countries to meet their climate goals while preserving industrial value chains and jobs,” said Tamara Lagurashvili, Director for Central and Eastern Europe at CATF.
“In a region with comparatively less budgetary room than governments in Western Europe, how funding mechanisms are designed and how CCS is deployed will have profound effects on the overall costs.”
Relevant: CATF Releases CCS Fact Sheets For European Countries
Policy Recommendations
CATF’s roadmap urges CEE governments to:
- Coordinate CCS value chains: Ministries and regulators should align capture, transport, and storage planning to ensure projects advance smoothly from concept to construction.
- Blend EU and national support: A mix of EU-level funds (e.g. the Innovation Fund) and national tools such as carbon contracts for difference can provide revenue certainty and reduce cost burdens.
- Back early-stage projects: Grants and policy clarity can accelerate permitting and investment decisions, building momentum and investor confidence.
The recommendations arrive as CEE governments face increasing pressure to meet EU climate goals amid geopolitical and economic headwinds. By taking a proactive role, CATF suggests, national governments can unlock affordable CCS pathways that safeguard industries, sustain jobs, and position the region for long-term economic resilience.
“Some of Europe’s most advanced CCS projects are moving forward because governments stepped up to coordinate and de-risk them,” said Codie Rossi, Europe Policy Manager for Carbon Capture at CATF.
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