There is broad scientific consensus that Carbon Capture and Storage (CCS) plays a part in virtually all modelled scenarios that limit warming to 1.5°C or 2°C. Given these findings, a considerable ramp-up of government policies across the globe have been initiated to support the first industrial scale CCS projects. Such policies have been effective, with operational CCS projects increasing from approximately 30 installations to 70 installations globally between 2020 to 2025.² Despite this, the market for CCS remains nascent, and additional policy and regulatory developments are needed to establish a fully-fledged, robust and commercial ‘CO₂ market’.  

CCS technologies are necessary to decarbonise heavy industries, such as cement, lime, waste incineration, paper and pulp, iron and steel, where process emissions will still need to be captured even after electrification and fuel switching to achieve net-zero. However, decarbonisation through direct electrification, efficiency improvements, demand reduction and substitution should always precede the use of CCS where technically and economically feasible. 

While CCS technologies have existed and been in use for decades, the conditions for the emergence of a fully commercial market for the transport and permanent geological storage of CO₂ have not materialised.

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