Carbon capture, utilization and storage (CCUS) is projected to contribute less than 5% of total emissions reductions by 2050, according to new analysis from the Institute for Energy Economics and Financial Analysis (IEEFA) based on the International Energy Agency’s (IEA) World Energy Outlook (WEO) 2025.
The IEA’s Net Zero Emissions (NZE) Scenario, which outlines the pathway required to eliminate global CO2 emissions by mid-century, shows a continued downgrading of CCUS compared to previous outlooks.
While CCUS was once positioned as a cornerstone decarbonization technology, its share of emissions reductions has steadily declined, falling from 13% in the IEA’s 2021 outlook to just 4.9% in 2025.
By contrast, the IEA projects that renewables, electrification, fuel switching and energy efficiency will collectively deliver more than 82% of the emissions reductions needed to achieve net zero. Solar and wind alone are expected to supply 73% of global electricity by 2050.
High Costs and Project Delays Weigh on CCUS Deployment
IEEFA notes that CCUS continues to face significant economic and deployment challenges. High capital and operating costs, bespoke project designs and inflation-sensitive materials have limited the technology’s competitiveness compared to renewable power and energy storage.
End-to-end CO2 disposal costs in Europe are estimated to range from €105 to €280 ($125-332) per ton, well above average carbon market prices.
Without sustained subsidies or high carbon prices, many projects remain financially unviable. As a result, numerous CCUS developments have been delayed, cancelled or failed to reach final investment decisions.
Relevant: IEA 2025 CCUS Database Highlights A Year Of Gains And Landmark Developments
Operational data also highlights the limited scale of current deployment. In 2024, CCUS-equipped facilities accounted for just 0.003% of global energy supply, according to the IEA.
Even under the NZE Scenario, CCUS is projected to deliver only 1.2% of decarbonization in the power sector and 3.7% across industry.
The findings suggest that while CCUS may play a niche role in hard-to-abate sectors, it is unlikely to become a central pillar of global decarbonization, with renewables and electrification continuing to dominate the net-zero transition.
Read more: What’s Next For Carbon Capture, Utilization & Storage (CCUS) In 2026?
