Greece introduces new legislation on carbon capture and storage (CCS)

Introduction

On 12 December 2025, Greece adopted Law 5261/2025,¹ (Greek CCS Law) establishing the country’s first comprehensive legal framework for carbon capture and storage (CCS) and marking a significant milestone for the Greek energy market.

At a time when the EU’s climate objectives are tightening and hard-to-abate industries face growing decarbonisation pressure, CCS is emerging as a crucial technology to support emissions reduction.

The adoption of Law 5261/2025 transposes the EU CCS Directive,² which establishes the EU-wide framework for geological storage of CO₂.

CCS technology consists of capturing CO₂ from industrial installations, compressing and transporting it to a storage site and injecting it into a suitable underground geological formation for permanent storage. These underground geological formations typically include depleted oil and gas reservoirs, or deep saline aquifers. Once injected, the CO₂ is trapped through a combination of physical and geochemical mechanisms. The purpose of CCS is to permanently contain CO₂ in a way that minimizes – and as far as possible eliminates – risks to human health and the environment, while enabling significant reductions in greenhouse emissions.

CCS is considered a key enabling technology for the decarbonization of industrial sectors, especially in industrial plants where no other pollutant abatement technologies are available.

 

Background

In 2009, the EU introduced the CCS Directive on the geological storage of CO₂ as part of its broader climate and energy policy framework, establishing a harmonized legal regime governing CCS technology.

Even though the EU introduced the CCS legislation in 2009, Greece was delayed in implementing this Directive compared with other EU member states and only implemented it in December 2025. This was largely due to the absence of prior domestic CCS activity, limited geological data for CO₂ storage, and policy focus on renewable energy deployment in earlier years.

CCS technology has been applied for decades in countries such as Canada, Norway and the US. And large projects are also being developed in industrial clusters in European countries such as Denmark, the Netherlands, the UK, France and Italy. According to the Greek Ministry’s of Environment and Energy announcement, with its newly introduced legislation, Greece joins a narrow core of countries worldwide that are implementing cutting-edge technologies, acquiring international knowhow and developing new domestic skills on CCS.

 

Legal Framework

Scope

The Greek CCS Law establishes a comprehensive regulatory framework governing the capture, use, transport and geological storage of carbon dioxide. The framework applies to both onshore and offshore storage sites and covers the full lifecycle of CCS projects. Specifically, the scope of the legislation includes the capture of CO₂ from industrial installations or directly from the atmosphere (Direct Air Capture or DAC), its use, its transport to storage sites and its injection into suitable underground geological formations for permanent storage. These formations may be located in terrestrial and sub-lake areas of Greece, and in underwater areas, in which Greece exercises sovereignty, in accordance with the provisions of the United Nations Convention on the Law of the Sea. It’s important to note that the Greek CCS Law only applies to projects where the total intended storage of CO₂ is 100 kilotons or more.

Key regulatory rules

The Greek CCS Law introduces a licensing regime for exploration and storage sites and strict monitoring and reporting obligations. It also lays down conditions for access to storage facilities and provides for compensatory measures in areas where storage will take place.

The Greek CCS Law requires companies to seek permits before they engage in CCS activities and imposes certain restrictions when doing so. Specifically, the capture of CO₂ is only allowed for operators whose operating license explicitly includes CO₂ capture.

The use of CO₂ requires a specific use license and transporting it requires a transport license. Interestingly, storage sites are owned by the Greek state, so exploration is only allowed through time-limited licenses of up to five years, while storage licenses are only granted after a detailed geological assessment.

During the operation of such facilities, there should be continuous monitoring of the behaviour of the CO₂ plume and of any leakage risks. If there is any leakage, immediate corrective measures should be adopted and the operator of the facility bears full responsibility. Operators are responsible for a specific period of time after the facility closes and liability only transfers to the state after strict conditions are met.

 

Application of CCS in Greece

Even though the Greek CCS Law was passed just over three months ago in Greece, major projects have already been approved for funding and have been underway for more than two years. These include projects in the cement, refining and gas infrastructure sectors, demonstrating the country’s commitment to fighting climate change through CCS activities.

One of the largest CCS projects in Greece is the Prinos CO₂ Storage project, developed by Energean, which is the first of its kind in southeast Europe and east Mediterranean. It aims to start by 2026-2027 with a capacity of 1 million tons of CO₂ per year, scaling up to 2.8-3 million tons of CO₂ per year by 2029-2030. This project aligns with and is an integral part of the Mediterranean CCS Strategic Plan developed by France, Italy, and Greece, aiming to create the first industrial/commercial-scale CO₂ storage hub in the southeast Mediterranean.

Another major CCS project in Greece is the OLYMPUS project, developed by Heracles, which aims to transform a cement plant into a net-zero facility. Specialised technologies will be used to reduce the complexity and optimise the efficiency of CO₂ collection. Captured CO₂ will then be liquefied and transported to the Prinos storage site. The project is estimated to be operational by 2029 and aims to capture and store 0.9 million tons of CO₂ per year, achieving a greenhouse gas emission reduction of approximately 95%.

The Apollo project developed by DESFA is Greece’s first CCS hub project, covering the midstream part of the value chain. The project includes the development and operation of a pipeline for the transportation of captured CO₂. The CO₂ will eventually be stored at the Prinos storage site.

Motoroil is developing the IRIS project, funded by the EU Innovation Fund, which is expected to reduce the CO₂ emissions of the Motor Oil Refinery by 25%. It will include the development of an e-methanol production plant, using renewable hydrogen and part of the carbon dioxide captured. This will be one of the first synthetic methanol production plants in Europe, offering new opportunities in the low-carbon fuels sector.

In the cement industry, TITAN is developing IFESTOS, a pioneering carbon capture project towards zero carbon cement and concrete. The project is the largest initiative of its kind in Europe, aiming to deliver net zero concrete by 2050.

 

Impact

The regulatory framework provides legal certainty for CCS investments and enables Greece to participate in cross-border CO₂ transport and storage networks. It also aligns Greek law with EU climate policy, unlocks access to EU funding mechanisms, and establishes state oversight over a technically complex and sensitive activity.

---

¹ Law 5261/2025 (published in Government Gazette A’ 231/12.12.2025).
² Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006, OJ L 140, 5.6.2009, pp. 114-135.