A new report from the International Energy Agency (IEA) highlights accelerating momentum in carbon capture, utilization and storage (CCUS), while warning that scaling the sector will depend on stronger financing and policy frameworks.
According to Financing CCUS at Scale, investment in CCUS has grown more than fifteenfold since 2020, exceeding $5 billion in 2025. Over the past two years alone, more than 30 projects have reached final investment decisions, signaling increasing confidence among developers and investors.
The global project pipeline also points to significant near-term expansion. Around 50 million tons per annum (Mtpa) of capture capacity is currently operational, with total capacity expected to nearly double by 2030 as additional projects move forward.
Shift toward storage-led projects
The report identifies a structural shift in the types of projects being developed. While carbon capture has historically been linked to utilization or industrial applications, dedicated CO2 storage is expected to dominate future deployment. Storage-focused projects account for roughly 20% of operating capacity today but are projected to represent more than 90% of the pipeline by 2035.
Regionally, North America continues to lead, supported by policy incentives and tax credit schemes that have enabled new financing approaches and improved project economics.
Despite this progress, the IEA emphasizes that significant barriers remain. CCUS projects are characterized by complex value chains spanning capture, transport, and storage, making risk allocation a central challenge for investors.
Relevant: IEA: Carbon Management Technologies Gain Funding And Policy Support But Funding Gap Deepens
Business models, particularly those that ensure predictable, long-term revenue streams, are seen as critical to improving bankability.
To sustain current growth rates, the report calls for stable policy environments, clear regulatory frameworks, and financial mechanisms that can mobilize private capital at scale. Without these, the sector risks falling short of its potential role in global decarbonization efforts.
The findings reinforce a broader conclusion: while project momentum is building, the next phase of CCUS deployment will depend as much on financial innovation and policy design as on technical capability.
Read more: When Carbon Capture Meets The Real World: Lessons From Scandinavia
