Carbon capture and storage, or CCS, is rapidly becoming one of the most important tools in the fight against climate change. With global emissions still rising and many industries struggling to cut carbon, CCS offers a way to remove and store CO₂ before it reaches the atmosphere.
Recent reports show that global CCS capacity is expected to grow quickly this decade, marking a critical moment for the technology and its role in meeting climate goals. Let’s unravel why this technology is important in achieving net-zero pledges, which regions lead in development, and what challenges are slowing its adoption.
What Is CCS and Why Does It Matter?
To understand carbon capture and storage, think of it as a climate safety net. It works by capturing carbon dioxide from two main sources. One is industrial sites, like factories and power plants. The other is directly from the air using advanced machines.
The captured CO₂ is compressed and stored underground in rock formations. This keeps it out of the atmosphere for hundreds or even thousands of years.
This process is essential for two reasons:
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It helps lower emissions from hard-to-decarbonize sectors such as cement, steel, and chemicals.
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Using direct air capture (DAC) or biomass energy (BECCS) can remove carbon from the atmosphere. This is essential for reaching net-zero by mid-century.
Although CCS alone can’t solve the climate crisis, most scientists and climate experts agree that it must be part of the solution.
CCS Capacity Set to Quadruple by 2030
In the past, CCS was mostly used in small pilot projects. But now, it’s entering a new phase. According to the latest data, global CCS capacity is projected to quadruple by 2030. This rapid growth is backed by an estimated $80 billion in investments expected to be deployed over just five years.
Today, there are around 50 million tonnes of CO₂ captured each year through CCS, according to the International Energy Agency. By 2030, that number is expected to rise to 430 million tonnes, with storage capacity potentially reaching 670 million tonnes. This shift is no longer theoretical—it’s happening now.
Several new projects have broken ground recently, including the world’s first cement plant with carbon capture and the largest DAC facility. These developments show that CCS is expanding both in size and across different sectors.
Who’s Leading the Charge? Global CCS Hotspots and Rising Stars
Right now, North America and Europe lead the world in CCS development. Together, they make up about 80% of all upcoming capture and storage capacity. However, other regions are beginning to catch up.
Countries like China, Brazil, and some in the Middle East are starting to invest heavily in CCS projects. For example, China alone is building projects that could capture over 15 million tonnes of CO₂ per year.
The types of industries using CCS are also growing. Originally tied closely to oil and gas, the technology is now being adopted by the shipping industry, natural gas power plants, and even waste-to-energy projects.
Wood Mackenzie’s projection echoes this trend. The major research and consulting firm estimates that the U.S. carbon capture, utilization, and storage (CCUS) sector could present a $196 billion investment opportunity over the next decade. This is particularly true within the oil, gas, chemical, and power industries.
This broader adoption shows that CCS is no longer a niche tool, but it’s becoming mainstream in global climate strategies.
Why Policy and Finance Are Fueling the CCS Surge
This growth wouldn’t be possible without strong policy support and financial incentives. In the United States, the 45Q tax credit provides up to $85 per tonne of CO₂ captured, and even more for DAC, which could reach as high as $180/t. These financial tools make CCS more affordable and appealing to companies.
Other countries are following suit. The United Kingdom has pledged £22 billion toward CCS, and Canada is offering up to C$83 billion in clean-tech funding, including for carbon removal technologies. These programs give companies the confidence to invest in long-term infrastructure.
As more countries build policy frameworks and carbon markets expand, experts expect investment in CCS to continue rising over the next decade.
What’s Holding Carbon Capture Back
Despite the optimism, several challenges could hold CCS back. One of the biggest issues is the time it takes to move a project from planning to operation. Right now, it can take up to 6 years to complete a CCS facility. To meet the 2030 goals, that timeline needs to be cut in half.
Costs also remain a concern. While prices are coming down, technologies like direct air capture are still expensive—sometimes over $300 per tonne of CO₂ removed. Continued innovation and large-scale deployment are needed to make these solutions more affordable.
Another challenge is that CCS projects are unevenly distributed across the globe. Most are in wealthy nations, while developing countries are left behind. For CCS to support global climate goals, more investment and technology sharing must be directed to lower-income regions.
Finally, some critics worry that CCS could be used to delay the transition to renewable energy. If the technology is used to extend the life of fossil fuel plants, it might slow down broader efforts to move away from polluting energy sources.
How Much Can CCS Really Help?
Even with all planned projects, CCS will likely capture only about 6% of the emissions needed to reach net-zero by 2050. That means we need a lot more projects—possibly 100 times more by mid-century.
- According to global climate scenarios, carbon capture must remove over 1 billion tonnes of CO₂ each year by 2030, and over 6 billion tonnes by 2050.
That’s a steep climb from today’s numbers. Still, if deployed alongside renewable energy, electrification, and energy efficiency, CCS can be a vital piece of the climate puzzle.
Its biggest strength lies in areas where other solutions don’t work well. For example, cement and steel production produce chemical emissions that can’t be avoided without carbon capture. Similarly, CCS makes hydrogen production cleaner and helps remove historical emissions through direct air capture.
If CCS scales as planned, it can:
- Cut CO₂ emissions from industrial sites like cement and steel
- Support zero-carbon hydrogen production
- Enable net-negative emissions when combined with BECCS and DAC
A Powerful Ally in the Net Zero Race
Carbon capture and storage has reached a critical turning point. With capacity set to grow four times larger by 2030 and major projects already underway, CCS is becoming a reality. But if the world hopes to limit warming to 1.5 degrees Celsius, much more is needed.
CCS alone can’t fix the climate crisis, but it can help close the gap, especially in sectors where other solutions fall short. With smart policies, fast deployment, and global cooperation, carbon capture can become a powerful ally in the race to a cleaner, more sustainable future.
