The European Commission has adopted a proposal for a directive on the geological storage of carbon dioxide (CO2). Carbon capture and storage (CCS) is a sequence of technological processes that involve capturing CO2 discarded by industry and transporting it to, then injecting it into, geological formations. CCS is mainly used to reduce CO2 emissions from power generation from coal and gas, but can also be applied to CO2-intensive industries such as cement, refineries, iron and steel, petrochemicals, oil and gas processing. The Commission proposal enables the use of CCS by providing a legal framework to manage environmental risks and remove barriers in existing legislation. The proposal also aims at stimulating companies to invest in CCS projects. Thus, State aid may be provided to cover the additional costs related to pioneer CCS projects. In addition, the EU Emissions Trading System will recognise CO2 captured, transported and safely stored as not having been emitted.