CCUS is widely recognised as a way of achieving global decarbonisation, particularly for hard-to-abate sectors such as cement, steel and chemicals. Yet, despite decades of development and policy support, large-scale deployment continues to fall short. A recent study in journal Nature Climate Change found that nine in ten CCUS projects announced between 1972 and 2018 were cancelled or delayed. With a rapidly narrowing window, the next two decades will be critical for accelerating progress if we are to achieve global net-zero targets.
CCUS has been used commercially for the last 50 years, with CO₂ being captured and sequestered mainly in enhanced oil recovery operations. Today, the focus has largely shifted towards capturing emissions from industrial sources, with the goal of either storing the CO₂ underground or repurposing it for commercial applications. Current capture technologies, including chemical absorption and physical separation, are beginning to be rolled out commercially at scale, and advanced approaches—such as membranes, metal-organic frameworks and electrochemical separation—are proving promising. However, this transition from development to commercially scalable deployment at the gigatonne level is still a major challenge.
CCUS progress so far
The number of announced CCUS projects has grown significantly in recent years, with over 600 now at various stages of development. However, as of Q1 2025, global CCUS operational capacity stands at just over 50mt/yr, according to the IEA. This is significantly below the approximately 1gt of CO₂ that the IEA says we need to capture annually by 2030. Although the agency estimates this capacity will reach around 430 million tonnes per year by 2030, that is still only about 40% of its target. In its 2023 Net Zero Roadmap, the IEA pointed to the long-standing challenges facing CCUS, describing its history as one of “unmet expectations”.
In 2024, CCUS attracted just $6.1b of the $2.1t invested globally in clean energy and energy efficiency, less than 0.5% of total investment. Historically, only a small fraction of CCUS projects reach FID and even fewer go on to completion. While capital is available, investors are often deterred by the lack of reliable scaling opportunities and long-term policy support. This has led to regional imbalances. By 2030, 80% of planned capture capacity is expected to be in North America and Europe, up from just under 60% currently.
Boosting investment through policy
Where CCUS has made progress, it has been because of targeted government intervention. The US offers the 45Q tax credit, Canada offers support through its carbon pricing mechanisms, and Norway’s comprehensive state-backed model, including the Northern Lights transport and storage infrastructure, is world-leading.
In October 2024, the UK increased its CCUS funding to £21.7b ($29.3b) over 25 years to support projects such as the East Coast Cluster and HyNet. Alongside capital funding, the government is developing market frameworks to attract private investment and provide revenue certainty. For example, carbon contracts for difference guarantee a fixed price for each tonne of CO₂ stored. Meanwhile, for CO₂ transport and storage, a regulated asset base model allows developers to earn a fixed return via regulated charges, and many of the agreements are designed to share risk across the chain, protecting investors.
The move to hub-based models
CCUS models are also evolving. Until now, it has been common for a single entity to manage capture, transport and storage, an approach that has proven to be inflexible and high-risk. To tackle this, models that use shared infrastructure and industrial clusters are becoming more popular. These hub-based systems separate functions across emitters, pipeline operators and storage providers, enabling greater specialisation and scalability. By enabling economies of scale, this approach reduces unit costs, lowers commercial risk and decreases financing costs.
Hubs play a central role in this transformation, as they match supply and demand by incentivising collaboration among producers, infrastructure owners and offtakers, strengthening the value chain. They come in various models, each designed to optimise CO₂ capture and storage.
For example, some hubs group together heavy-emitting industries, like steel or cement, close to underground storage sites. Others focus on sources that produce very pure CO₂, such as hydrogen production, where capture is cheaper and easier. Some hubs mix a variety of emitters to make better use of shared infrastructure and reduce financial risk. And in some cases, the hub is built around a storage site with strong geological capacity, like a depleted oil reservoir, which then connects to multiple, often distant, emitters.
Advances and challenges in technology
The most widely used method for capturing CO₂ is post-combustion chemical absorption, which remains the most developed technology. However, promising advancements are on the horizon, including solid sorbents, cryogenic methods and electrochemical separation, offering new potential for more efficient capture.
In terms of transporting CO₂, ship-based transport is growing for international and offshore storage, but pipelines remain the lowest-cost and most efficient option at scale. However, it is important to also consider the risks of pipelines. CO₂ is typically compressed, with the changes in pressure and temperature making it behave like both a gas and a liquid. At the same time, it also contains impurities such as hydrogen sulphide and water, which can significantly increase the risk of corrosion.
This is why CO₂ needs to be purified before transport, but this conditioning process is complex, and managing pressure safely is also a challenge. If a leak occurs, especially in dense-phase CO₂, it can expand rapidly, settle in low areas, displace oxygen and pose serious health risks. This was exactly what happened in Mississippi in 2021, when a pipeline carrying CO₂ ruptured less than a mile from the town of Satartia, causing injuries. This is why transport systems must be designed specifically for CO₂, rather than relying on those used for oil and gas. Previous field tests in the UK, such as those carried out by risk management provider DNV at Spadeadam between 2011 and 2015, are supporting these efforts.
Another challenge is storage readiness. Advances in seismic imaging, fibre-optic monitoring, and subsurface simulation are helping us understand where and how CO₂ can be stored safely. However, rules around permits, liability and long-term monitoring still need to catch up to ensure trust and proper oversight.
Towards an integrated strategy
To make CCUS work at scale, it requires the alignment of policy, finance, technology, and regulation—each playing a critical role in creating the conditions necessary for widespread deployment. A good way of thinking about the problem is using the Swiss Cheese Model, a concept from engineering risk management. Each of these layers, or slices, has its own gaps or weaknesses, but when aligned effectively, the system becomes more resilient. It is not that any single component is flawless, but that they collectively compensate for one another, reducing overall risk.
In practice, this means using business models that attract investment and generate reliable returns. It means making CCUS part of long-term policies that are backed by law and making technological improvements that perform at scale. Along the way, CCUS must earn the public’s trust by being open, putting in strong safeguards and engaging with communities early and consistently.
Although CCUS is recognised as a crucial route to decarbonisation, its success depends on being able to scale to meet the challenge. The technology must become capable of delivering at scale. In turn, that requires stable policy, investable frameworks and coordinated infrastructure across capture, transport and storage to ensure CCUS fulfils its role in achieving net zero.
The article was published by Carbon Economist.
Picture Credit: Kanenory, pixabay