The Future of Emission Reduction: How CCUS Supports Global Climate and Economic Goals

Carbon Capture, Utilization, and Storage (CCUS) is a critical technology for reducing emissions in hard-to-abate sectors like cement and steel, capturing up to 99% of CO2. With growing global investments and support from institutions like ADB, CCUS offers a scalable solution to achieve net-zero targets while fostering economic opportunities.

A comprehensive research developed with contributions from the International Energy Agency (IEA) and the Asian Development Bank (ADB), underscores the transformative role of Carbon Capture, Utilization, and Storage (CCUS) in addressing climate change. As a cornerstone of the 2015 Paris Agreement's goals to limit global temperature rise to 1.5°C, CCUS offers a practical solution to reduce emissions in sectors where alternative strategies like renewable energy are insufficient. This technology is particularly critical for hard-to-abate industries such as cement and steel, where up to 99% of carbon dioxide emissions can be captured, filling a gap left by traditional decarbonization methods. CCUS complements broader climate strategies, including energy efficiency improvements, renewable energy expansion, and the adoption of alternative fuels.

CCUS in the Global Fight Against Emissions

The International Energy Agency highlights CCUS as a critical element in achieving significant global emissions reductions, projecting the capture of 10.4 gigatonnes of CO2 annually by 2070 under its Sustainable Development Scenario. This represents nearly 15% of the cumulative reductions needed to reach net-zero targets. The technology is rapidly gaining traction worldwide, with over 700 projects currently in various stages of development. Investment in CCUS surged to 6.4 billion in 2022, signaling growing confidence in its potential. While most projects are concentrated in the United States and Europe, significant advancements are being made in Asia and Australia. These efforts demonstrate the adaptability of CCUS to diverse regional contexts and its ability to integrate seamlessly with existing industrial infrastructures.

Regional Leadership and Targeted Implementation

The Asian Development Bank has been instrumental in advancing CCUS technologies across Asia and the Pacific. With a 100 billion climate finance commitment spanning 2019 to 2030, the ADB supports its member countries through policy and regulatory assessments, capacity building, and pilot projects that address the unique challenges of implementing CCUS. For instance, in Indonesia, the ADB has supported the Gundih Carbon Capture and Storage Pilot Project, which focuses on identifying CO2 storage solutions, and transportation infrastructure, and addressing technical and environmental barriers. Meanwhile, in China, the Tianjin Integrated Gasification Combined Cycle Power Plant project tests CO2 capture technologies and shares operational insights through international platforms. These projects highlight the importance of tailored regional initiatives in overcoming challenges and building a foundation for large-scale CCUS adoption.

Economic Opportunities and Environmental Impact

One of CCUS’s most compelling aspects is its ability to combine environmental benefits with economic opportunities. By capturing emissions, industries can participate in carbon credit trading, creating financial incentives to reduce their carbon footprint. Captured CO2 can also be monetized for use in enhanced oil recovery or as a key input in producing low-carbon hydrogen, further supporting industrial innovation. The development of CCUS hubs, where CO2 from multiple sources is aggregated for storage or utilization, demonstrates how economies of scale can reduce costs and drive adoption. In Indonesia, for example, ADB facilitated the development of a CCUS-specific legal framework, adapting existing oil and gas regulations to establish a robust governance model for future projects. These hubs not only enhance industrial competitiveness but also offer a scalable pathway for achieving decarbonization targets.

Addressing Challenges to Unlock CCUS’s Full Potential

Despite its promise, CCUS faces several challenges that must be addressed to realize its full potential. High implementation costs remain a significant barrier, particularly for developing countries with limited financial resources. Regulatory uncertainties and public skepticism about the safety and feasibility of carbon storage further complicate adoption. However, innovation in technology and increasing investment are steadily overcoming these obstacles. Advances in CO2 capture methods, improvements in storage capacity, and integration with other decarbonization strategies like renewable energy and low-carbon hydrogen production are making CCUS more accessible and effective. The IEA emphasizes that CCUS is not a standalone solution but a critical component of a broader climate strategy, complementing efforts in energy efficiency, renewable energy, and alternative fuel adoption.

A Pathway to Sustainable Development

As climate change intensifies, CCUS represents a practical and scalable solution to balance industrial growth with environmental responsibility. The coordinated efforts of institutions like the ADB and IEA illustrate the power of international collaboration in advancing CCUS technology. By leveraging tailored financial and technical support, these organizations are helping regions overcome unique challenges and unlock the potential of CCUS. Platforms like the Asia Clean Energy Forum facilitate knowledge sharing and provide a foundation for cross-border collaboration, enabling stakeholders to develop actionable roadmaps for implementation.

Through a combination of environmental benefits and economic opportunities, CCUS is becoming an integral part of global decarbonization strategies. Its ability to address emissions in hard-to-abate sectors ensures that industries can transition to sustainable practices without compromising productivity or competitiveness. Developing CCUS hubs, legal frameworks, and targeted pilot projects demonstrate a scalable and practical approach to achieving net-zero emissions. With continued investment, innovation, and international collaboration, CCUS has the potential to drive transformative change in the fight against climate change, ensuring a more sustainable and inclusive energy future.

As the world races to meet its climate goals, CCUS stands out as a vital tool in the arsenal of solutions required to address global emissions. Its dual role in reducing carbon emissions and fostering economic resilience makes it a cornerstone of modern climate action. By focusing on regional leadership, technological advancement, and economic incentives, CCUS offers a roadmap for achieving a sustainable and equitable transition to a low-carbon future. Through its targeted applications and broad benefits, CCUS underscores the importance of innovative solutions in overcoming the challenges of climate change and ensuring a sustainable future for generations to come.