Carbon capture and storage (CCS) technology emerged as a prominent climate solution during the Covid-19 pandemic, with governments and companies pledging substantial investments to support green transitions. The technology operates by capturing carbon dioxide at emission sources for underground storage or removal directly from the atmosphere through direct air capture (DAC). Industries unable to transition immediately to renewable alternatives have invested heavily in CCS to reduce emissions while pursuing long-term decarbonization strategies.
Industry projections have been optimistic. The World Economic Forum predicted in 2025 that the CCS sector would expand fourfold by decade’s end, supported by significant investments from major corporations including ExxonMobil, Shell, Chevron, and TotalEnergies. Governments have also committed substantial resources, with Germany launching a $5.7 billion Carbon Contracts for Difference scheme and the United Kingdom allocating up to $29 billion over 25 years for CCS and hydrogen development. Denmark’s Aalborg Portland signed a $2.55 billion contract for one of Europe’s largest industrial CO2 capture projects.
However, performance issues are emerging. An Institute for Energy Economics and Financial Analysis review of 13 operating CCS projects worldwide found that most captured below their 90 percent design capacity, with some failing entirely. The Global CCS Institute reported only 50 facilities operating worldwide in 2024, capable of capturing roughly one thousandth of global emissions. Additionally, cost analyses reveal significant discrepancies from earlier estimates, with European projections ranging from $170 to $340 per tonne—approximately 50 percent higher than previous forecasts. U.S. applications could double power production costs by $20 to $30 per megawatt hour.
Critics contend that CCS serves primarily as a public relations tool enabling continued fossil fuel use under the guise of “low-carbon” operations. Environmental advocates argue that substantial funding directed toward CCS could instead support alternative clean energy solutions. Industry participants at a 2025 London conference suggested CCS should only be pursued after exhausting other green alternatives. The convergence of technical underperformance, escalating costs, and dependency on taxpayer subsidies has prompted questions about whether CCS technology can deliver meaningful decarbonization or merely extends the viability of carbon-intensive industries.
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