CCSA Highlights Opportunities for CCUS at COP29

• The UK’s leadership in CCUS deployment through its Cluster approach and leading regulatory framework, offers a model for other nations aiming to scale CCUS

• The UK’s offshore carbon storage capacity exceeds national needs, opening opportunities for international collaboration

• Cross-border CO₂ storage agreements and a long-term allocation framework can create certainty for investors and drive progress in industrial decarbonisation

[London, 20 November] –Speaking at a COP29 side event in Baku, Azerbaijan, Olivia Powis, CEO of the CCSA, emphasised the critical role of Carbon Capture, Utilisation, and Storage (CCUS) technologies in reducing global emissions. She highlighted the UK’s significant offshore carbon storage capacity, which exceeds national requirements, as a potential solution for international CO₂ storage needs, fostering global collaboration in emissions reduction.

Addressing a panel alongside US Dept of Energy, IEA GHG, University of Texas at Austin, Bellona, and the International CCS Knowledge Centre, Olivia addressed the financial and technical challenges of scaling Carbon Capture and Storage (CCS) technologies globally.

Olivia explained that in the UK, the CCUS Cluster approach is aimed at providing the most cost-effective solution with capture projects sharing CO₂ transport and storage infrastructure. As the industry moves forward, we need to move towards a competitive, market-based approach with a regular allocation framework, providing long-term visibility for developers and the supply chain and opening up a European cross-border CO₂ storage market.

The UK has committed to deploying CCUS across industrial regions as part of its ambitious goal to reduce greenhouse gas emissions by 81% by 2035. The UK’s leadership in this field offers valuable lessons for other nations striving to scale up CCUS deployment.

At COP29, Olivia detailed the UK’s leadership in CCUS deployment, offering a model for other nations aiming to scale CCUS. Collaboration between nations is essential for building trust and scaling CCUS effectively, with new projects learning from past experiences.

As global economies phase out the use of fossil fuels and drive progress in industrial decarbonisation, governments need to invest in and deploy all available technologies to transition to a low-carbon economy. CCUS is poised to play a central role in this effort, working alongside other green technologies.

With 2024 projected to be the first year global warming surpasses 1.5°C – the threshold set by the Paris Agreement – the urgency to deploy CCUS and other green technologies has never been greater. This year alone has starkly demonstrated the effects of climate change, with Europe and other regions facing unprecedented loss of life, economic upheaval, and ecological destruction from severe flooding, hurricanes, wildfires, and heatwaves.

The advantages of CCUS are clear. As long as we rely on gas-fired power stations to provide energy when renewable power is low, and continue to use cement to build hospitals, and schools, and chemicals such as fertilisers for food production, we need to find a way to do this without emitting more CO₂ into the atmosphere. For many of these industries, CCUS is the only option and a critical lifeline to support their decarbonisation.

Olivia Powis, CEO of the CCSA said:

“COP29 provided a crucial platform to share insights, address barriers, and showcase the opportunities for scaling CCUS technologies globally. The UK’s leadership in CCUS, combined with international collaboration and innovative financing solutions, will be key to ensuring CCUS plays its full role in global decarbonisation efforts.”

“What we need now is rapid deployment. Industry has already made significant investments in developing CCS projects, particularly in the UK, and with the right regulatory frameworks and government support, we can unlock even more potential. To meet our ambitious climate goals, it’s essential that we move from planning to action and accelerate the development of these critical technologies. The time to act is now.”

Notes to Editors

Key Takeaways from COP29 CCS Financing Event:

Moderated by Tim Dixon of IEAGHG, the side event at COP29 brought together experts to explore pathways for scaling CCS globally.

• Scaling CCS in Emerging Economies
Barriers like high capital costs, limited infrastructure, and regulatory challenges were discussed. Success stories, such as Trinidad and Tobago’s Technology Needs Assessment and Alberta’s TIER system, highlighted how targeted policies and financing can drive CCS progress.

• Global CCS Momentum
Brad Crabtree from the US Department of Energy shared that over 600 CCS projects are in development worldwide, with US tax incentives serving as a model for cost reduction and broader deployment.

• Innovative Financing Solutions
Experts highlighted the importance of mechanisms beyond direct subsidies, including carbon credit trading and international collaboration. Knowledge sharing, as exemplified by the International CCS Knowledge Centre, was noted as essential for effective project scaling.

• The Role of COP29 in Climate Finance
This event took place in the context of COP29’s critical discussions on climate finance, including the establishment of a new collective quantified goal to replace the current $100 billion annual target. Participants also highlighted the importance of operationalising the Loss and Damage Fund, which could support emerging economies in developing CCS projects.

Panellists:
• Tim Dixon – General Manager and Director, IEA Greenhouse Gas R&D Programme (IEAGHG) (Moderator)
• Brad Crabtree – Assistant Secretary, Office of Fossil Energy and Carbon Management (FECM), US Department of Energy
• Katherine Romanak – Researcher, University of Texas at Austin
• Olivia Powis – Chief Executive Officer (CEO), Carbon Capture and Storage Association (CCSA)
• James Fann – President and CEO, International CCS Knowledge Centre
• Olav Øye – Policy Adviser, Bellona Environmental Foundation (Bellona)
• Clarine Ovando-Lacroux – Representative, UN Environment Programme Copenhagen Climate Centre (UNEP-CCC)
• Donneil Cain – Representative, Caribbean Community Climate Change Centre (CCCCC)

This joint side event was hosted by the CCSA, IEAGHG, University of Texas at Austin, Bellona, and the International CCS Knowledge Centre. The event underscored that progress on Article 6.4 of the Paris Agreement could further reduce costs and facilitate international cooperation in CCS deployment.

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO₂ transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please email press@ccsassociation.org

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