Economic Potential of DACCS and Global CCS Progress slide image

Economic Potential of DACCS and Global CCS Progress

2.1 AMBITION TO ACTION The past few years have witnessed an escalation in the language of climate change. Transforming the global economy to achieve net-zero greenhouse gas emissions by mid-century is now accepted as the objective in the global climate change discourse. This level of ambition, essential to avoid dangerous anthropogenic interference with the climate system, requires an acceleration in investment in near-zero emissions technologies of all types across all sectors. Put simply, the global response to climate change is advancing from ambition to action and this is clearly evident in data on the level of investment in carbon capture and storage (CCS). The significant increase in activity to develop carbon capture and storage projects reported in the Global Status of CCS 2021 report has continued throughout this reporting period. As of September 2022, the total capacity of CCS projects in development was 244 million tonnes per annum (Mtpa) of carbon dioxide (CO2) - an increase of 44 per cent over the past 12 months, as shown in Figure 1. This growth arises from the private sector's response to the rising expectations of civil society to move to a net-zero emissions future and the evolution of government policy and regulation that is strengthening the business case for investment in CCS. The business risks and opportunities created by climate change are receiving closer analysis. For some businesses, CCS is a critical tool in reducing their exposure to CO2 emissions, either directly or in their value chain, mitigating a strategic business risk. For others, CCS is an opportunity to supply a new and growing industry. Similarly, governments seeking to chart the lowest-cost, most efficient pathway toward net-zero are identifying CCS alongside all other mitigation options as essential to meeting climate targets, while ensuring a just transition for their communities. 2021 (using 2022 approach) 2022 0 20 40 60 80 100 120 CAPTURE CAPACITY (Mtpa) OPERATIONAL ADVANCED DEVELOPMENT OPERATION SUSPENDED FIGURE 1: CAPACITY OF CCS FACILITIES IN DEVELOPMENT [5] IN CONSTRUCTION EARLY DEVELOPMENT 眼 DEMAND FOR ECONOMIC PROSPERITY AND A JUST TRANSITION CCS Ooooo DEMAND FOR ENERGY, FERTILISER, STEEL, CEMENT, CHEMICALS ETC. DEMAND FOR GREENHOUSE GAS EMISSION REDUCTION SERVICES FIGURE 2: DEMAND DRIVERS FOR CCS GLOBAL CCS INSTITUTE
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