7 Things to Know About Carbon Capture, Utilization and Sequestration

The past few years have seen increased global attention and investment in carbon capture technology as a way to capture the emissions causing climate change before they enter the atmosphere. Policies like the EU's Net Zero Industry Act, the 45Q tax credit in the U.S. and Denmark's CCUS Fund, as well as emerging regulation in Indonesia, are all helping to accelerate the deployment of carbon capture, utilization and sequestration (CCUS).

Yet even as the pipeline of CCUS projects grows year over year, progress remains far below what climate models indicate is needed due to stubbornly high costs, regulatory challenges, and insufficient policy and financial support.

Today CCUS captures around 0.1% of global emissions — around 50 million metric tons of carbon dioxide (CO2). Climate scenarios that limit warming to 1.5 degrees C (2.7 degrees F), published by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), show CCUS capturing around 1 billion metric tons of CO2 by 2030 and several billions of tons by 2050.

But not everyone sees CCUS as part of the climate solution. While certain countries are moving ahead with CCUS deployment, others are skeptical of its use. Some NGOs and other stakeholders oppose CCUS, arguing that it creates a moral hazard and that it's only a band-aid over what they see as the real problem: ending use of fossil fuels. They point to a mixed record of success, high costs, and the potential for disproportionate impacts on vulnerable communities among reasons to not rely on the technology.

This article addresses key questions around the role of CCUS, including where the technology is today, in which sectors it will be most useful, and how much of the total mitigation need it can provide to help meet global climate targets.