Presentation Description
Since 2017, CCS has scaled up significantly, and the project pipeline has reached an unprecedented capacity in 2023. It is expected that this trend will continue, as more countries are introducing CCS into their decarbonisation efforts. The diversity of industries to which CCS is being applied has increased significantly over the past several years, demonstrating a growing recognition of its role in supporting net-zero ambitions.
The last 12 months have seen a significant increase in equity financing and interest in project finance for CCS projects. Many businesses seeking to profit from the provision of CCS services, especially in the transport and/or storage of CO2, are now emerging on the back of expectations of enormous future demand and more stringent climate policy. International CCS value chains are being developed, with the first transboundary movement of CO2 by ship for geological storage having been completed between Belgium and Denmark in 2023.
CCS is also becoming a more prominent feature of public policy, from inclusion in a growing number of countries’ Nationally Determined Contributions (NDCs) through to the provision of targeted policy to drive deployment and the drafting of appropriate regulations.
These are all encouraging indicators of positive progress. However, authoritative analysis by the International Energy Agency, the Intergovernmental Panel on Climate Change, and others consistently indicates that achieving global climate targets will require annual CO2 storage rates of approximately 1 Gtpa by 2030, growing to around 10 Gtpa by 2050.
Analysis from the Institute and other organisations demonstrate that whilst there are credible pathways for scaling up CCS deployment to keep the world on track for the goals of the Paris Agreement, this will require a monumental policy effort. Continued growth of the facility development pipeline and ensuring projects in development proceed to final investment decision, construction and operation will be imperative to achieve these goals.
There have been significant changes to relevant policy across the globe in the last few years that have clearly demonstrated the potential of CCS project development to accelerate. For example: The impact of these recent developments is expected to be a sustained increase in the number of CCS projects in development, and a greater proportion of them successfully progressing to construction over the next decade.
The last 12 months have seen a significant increase in equity financing and interest in project finance for CCS projects. Many businesses seeking to profit from the provision of CCS services, especially in the transport and/or storage of CO2, are now emerging on the back of expectations of enormous future demand and more stringent climate policy. International CCS value chains are being developed, with the first transboundary movement of CO2 by ship for geological storage having been completed between Belgium and Denmark in 2023.
CCS is also becoming a more prominent feature of public policy, from inclusion in a growing number of countries’ Nationally Determined Contributions (NDCs) through to the provision of targeted policy to drive deployment and the drafting of appropriate regulations.
These are all encouraging indicators of positive progress. However, authoritative analysis by the International Energy Agency, the Intergovernmental Panel on Climate Change, and others consistently indicates that achieving global climate targets will require annual CO2 storage rates of approximately 1 Gtpa by 2030, growing to around 10 Gtpa by 2050.
Analysis from the Institute and other organisations demonstrate that whilst there are credible pathways for scaling up CCS deployment to keep the world on track for the goals of the Paris Agreement, this will require a monumental policy effort. Continued growth of the facility development pipeline and ensuring projects in development proceed to final investment decision, construction and operation will be imperative to achieve these goals.
There have been significant changes to relevant policy across the globe in the last few years that have clearly demonstrated the potential of CCS project development to accelerate. For example: The impact of these recent developments is expected to be a sustained increase in the number of CCS projects in development, and a greater proportion of them successfully progressing to construction over the next decade.