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Denmark Carbon Capture, Utilization and Storage Regulation

Denmark Carbon Capture, Utilization and Storage Regulation: Denmark CCUS Law: Permitting, Monitoring and Long-Term Liability

Maílis Carrilho
Written by Maílis Carrilho
Updated on May 28th, 2026

Summary

Denmark regulates carbon capture, utilization, and storage through subsoil and environmental permitting regimes requiring detailed assessments, monitoring, and long-term liability management. CCUS projects must secure permits before operation and comply with strict monitoring and reporting obligations throughout the project lifecycle. Non-compliance can result in permit withdrawal and significant long-term liability exposure, making regulatory planning and financial security central to project viability.

Details

Jurisdictions
  • Denmark
Mandatory for

Legally binding for:

Operators developing CO₂ storage or utilization projects.

Entities transporting captured CO₂ for storage.

Exemptions

Research-scale or pilot projects may follow modified permitting pathways.

Certain utilization activities may fall outside geological storage rules but remain regulated.

Deep dive

3 min read
Published May 28, 2026

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What's Required

Project developers, storage operators, industrial emitters and infrastructure operators may need to:

  • Obtain exploration licences for potential CO2 storage sites.

  • Obtain storage permits before injecting CO2 underground.

  • Conduct geological, environmental and safety assessments.

  • Demonstrate long-term storage integrity and monitoring capability.

  • Carry out environmental impact assessments where required.

  • Monitor injected CO2 and report operational data to authorities.

  • Implement leak prevention, contingency and remediation measures.

  • Comply with offshore, maritime and environmental safety rules.

  • Maintain financial security or guarantees where required.

  • Cooperate with Danish authorities during inspections, licensing reviews and operational monitoring.

  • Meet EU ETS monitoring and accounting requirements where captured CO2 interacts with emissions accounting systems.

Important Deadlines

  • Denmark implemented the EU CCS Directive through amendments to the Danish Subsoil Act.

  • December 2021: Denmark opened licensing rounds for CO2 storage in the North Sea.

  • 2022-2023: Denmark awarded several offshore CO2 storage exploration licences.

  • 2029: Denmark aims to achieve significant operational CCS deployment as part of national climate policy targets.

  • Project-specific deadlines depend on licensing terms, environmental approvals, monitoring obligations and operational milestones.

Current Status

Denmark’s CCUS regulatory framework is currently in force.

The framework is legally binding and actively used for licensing and regulating carbon storage projects. Denmark has granted exploration licences for offshore CO2 storage projects in the North Sea and continues developing infrastructure and market conditions for carbon capture and storage.

The Danish Energy Agency is the main authority responsible for licensing and oversight of underground CO2 storage activities.

Denmark is also integrating CCS into broader climate and industrial policy. Carbon capture is expected to play an important role in achieving Denmark’s legally binding climate targets, particularly in sectors where direct electrification or emissions elimination is difficult.

Penalties for Non-Compliance

  • Statutory fines

Non-compliance may lead to administrative, operational or criminal consequences under Danish subsoil, environmental and offshore safety legislation.

Potential consequences may include:

  • Refusal, suspension or withdrawal of exploration or storage licences.

  • Restrictions on CO2 injection activities.

  • Orders to implement corrective measures or additional monitoring.

  • Financial liability for environmental damage or CO2 leakage.

  • Administrative fines or penalties.

  • Liability for remediation and long-term site management costs.

  • Increased inspection or reporting obligations.

  • Criminal liability in serious cases involving negligence or environmental harm.

Because CO2 storage projects require government licences and technical approvals, the most immediate consequence of non-compliance is usually inability to develop, operate or continue operating the storage project.

Examples of Known Violations

As of May 2026, we were not able to find publicly available examples of specific penalties imposed under Denmark Carbon Capture, Utilisation and Storage Regulation against named organizations.

This is partly because Denmark’s CCS industry is still relatively new and most large-scale storage projects are in development or early operational phases.

However, Danish authorities actively supervise licensing, environmental assessment and technical compliance for CO2 storage activities.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on May 28, 2026 by Maílis Carrilho ·