CCUS is recognized as a necessary and relatively low-risk piece of the decarbonization puzzle, but the technology is not moving fast enough to achieve a 1.5° or even 2.0° pathway.

 KEY CHALLENGES TO CCUS COMMERCIALIZATION & UPSCALING

1. Policy is uneven and uncertain
2. Revenue streams are not well established
3. Projects are large and unproven
4. Cost benefits of scaled projects come with coordination complexity
5. Controversial public perception.

ACTIONS THAT CAN HELP

The following actions can help industry players, regulators, and investors determine the next steps:

Companies

1. CCUS business cases need to rely on more than just subsidies
2. Need to collaborate and coordinate
3. Reduce capture costs. 
4. Advocate for carbon taxes, higher ETS levels, or other tariff barriers

Regulators

1. Decide whether CCUS can be a major feature of industrial policy
2. Create the regulatory, tax, and reporting frameworks that will allow the industry to scale
3. Accept that early projects will need subsidies and direct support

Investors

1. Insist on bold ESG commitments from the companies they invest in
2. Understand how investing in CCUS can create value

BOTTOMLINE - NOT MENTIONED IN ARTICLE

Industry need to abate about 40 GTonne per annum globally to achieve net-zero by 2050. Most of it should come from Avoidance projects (solar, wind, Hydrogen etc) and Reduction projects (efficiency) and only about ~5 Gt/y can be avoided from Removal projects (CCS i.e underground storage). Only hard to abate industries (cement, steel, refining etc.) that have no other alternatives should target CCS (emissions ~about 3.5 Gt/y). The low cost and profitable capture industries (Ex: natural gas processing, ethanol, hydrogen, fertilizer etc) although have a small foot print (~ 0.5 Gt/y),  will also benefit. The power generation industry, that has massive emission foot print (~ 12 Gt/y) should look for other alternatives; focus on avoidance and reduction projects, only a small fraction (~about 1.0 Gt/y) can benefit from CCS.