ExxonMobil sues EU over rules forcing oil giants to invest in carbon storage

Oil and gas giant ExxonMobil is suing the European Commission over EU rules requiring fossil fuel producers to contribute to carbon storage targets. The group is challenging provisions of the EU's Net Zero Industry Act obligations on carbon storage. Under this text, authorised oil and gas producers must contribute to the EU's target of achieving 50 million tonnes of annual CO2 injection capacity by 31 December 2030. ExxonMobil argues that the EU's stringent climate requirements are impossible to meet because of lengthy permitting procedures and high costs. The group alleges that the EU has breached provisions of the Energy Charter Treaty relating to fair and equitable treatment, non-discrimination and the protection of investments against expropriation. The case raises questions about how far the EU can go in making fossil fuel producers pay for the energy transition. The European Commission told Euronews it does not comment on ongoing legal cases.