According to global financial services provider ING, the carbon capture and storage (CCS) market is set to grow even despite facing difficulties kicking off 2024.
The unreasonable hopes for a rapid growth spurt this year should be set to give way to more realistic expectations for steady momentum in the nascent carbon capture sector, ING says.
One of the challenges formed for the CCS market is the air of uncertainty resulting from a number of different factors, including upcoming elections in the EU and US.
Another challenge is the high cost of carbon capture technology, which is still a significant bottleneck in the expansion of the market, preventing it from growing at the rate needed to mitigate the climate crisis.
On the flipside, governments around the world are increasingly showing their support for CCS solutions, and some expect this to contribute to an eightfold jump in carbon capture capacity by 2030, according to Bloomberg New Energy Finance.
As of right now, the world is capturing and storing only a very small portion – 0.1% – of global CO2 emissions, and must reach a total of 15% by mid-century, if we stand a chance at limiting rising temperatures.
And from 2050 onwards, the world will have to continue deploying CCS and carbon removal technology in order to start producing negative emissions and undo the consequences of global warming.
Hence, ING sees CCS as a successful market in the long run, but meanwhile, the company is focusing on some of the real-word factors that will impact the market in 2024.
These include the aforementioned elections in both the US and in the EU, as well as in India; demand from large emitters for CCS; carbon pricing, and social acceptance.