Europe’s climate goals are unattainable without large-scale carbon capture and storage - and the technology is ready

There are three primary bottlenecks that are causing CCS delays across the industry.

Firstly, the current discussion between the EU and the members states around adjustments to the Emissions Trading System (ETS) scheme has created uncertainties which causes businesses to delay or rethink investment decisions. A predictable regulatory environment is essential to unlock long-term capital.

Secondly, firms are struggling with the need to secure reliable revenue streams due to the volatile EU ETS carbon price. Until a stable and predictable ETS price has been established - at a level of 2-3 times higher than today - firms will require public support, such as through the Carbon Contracts for Difference (CCfD) scheme. While this addresses the issue of fluctuating carbon prices, it is still an area of concern when economies of scale and clusters are not yet established.

Third, there is a fundamental imbalance in risk allocation. Currently, all the risk across the value chain remains entirely on the emitter. Even if costs are covered, e.g. through CCfD, they are still subject to a risk premium which in turn discourages final investment decisions. Enhanced government backing for participants across the value chain will remain essential until infrastructure and market ecosystems are fully established.

Costs remain a significant barrier to widespread CCS deployment. While capture costs are relatively stable and predictable, infrastructure costs, particularly for transport and storage, are driven by factors such as ship sizes, round trip frequency and volumes. The need to unlock affordability along the chain of transport is therefore critical and emphasises why the development of clusters are becoming so increasingly important for the industry.

While we see state-of-the-art technology in CCS, there is little in the way of economies of scale until you factor in cluster hubs. The less predictable costs in transport, storage and shipping suddenly become highly scalable by sharing infrastructure. This, coupled with aggregating CO2 volumes, results in the CCS industry being a far more cost-effective proposition.

Given the promising developments at cluster hubs and a hopeful view of currently unpredictable costs, there is reason for optimism. Over the next two-to-five years we will see outlays drop. However, at present, it’s clear to see that aggregating volumes through clusters are singlehandedly the biggest lever the industry has at its disposal to reduce cost.

Member states are struggling to meet their ambitious decarbonization targets. There are many reasons for this, including global uncertainty amidst a volatile geopolitical backdrop, but there is also no hiding from it.

In order to continue to strive for decarbonisation, it is clear that CCS is a key technology to reduce large volumes of CO2 emissions. This applies cross-sector too, such as in cement, steel, waste-to-energy and the chemical industry.

The technology is there, as is the eagerness, but companies pushing ahead with their first CCS projects need a clear path forward in order to operate with pace and scale and enable their first flagship projects. A crucial first step to enabling this is coordinated policy framework which creates a stable, trusted environment for businesses to invest in. This will help to build out the infrastructure that is urgently needed while also creating a backdrop that will encourage faster and more reliable decision making.

CCS has proven to be the key player in a decarbonisation portfolio and the technology is ready for large-scale deployment. Once a stable market is realised, and with appropriate support in place, there should be no stopping its vital progress.

Its growing prominence is reflected with a new dedicated zone at this year’s World Hydrogen Summit & Exhibition in Rotterdam (19–21 May 2026). Bringing together over 10,000 global experts and 500+ exhibitors, the event signals a broader recognition of CCS as an essential partner in the energy transition.

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