IEEFA – Carbon Capture and Storage: Europe's Climate Gamble, Oct 2024

Europe's reliance on carbon capture and storage (CCS) as a key solution for reaching net zero emissions is facing significant challenges. The technology readiness levels of CCS projects are still at prototype or demonstration phases, leading to high delivery risks. The costs associated with implementing CCS are prohibitively high, with the current project pipeline in Europe potentially requiring €520 billion and €140 billion of government support. The complexity of CCS, both economically and technically, could lead to delays, cancellations, and underperformance of projects. Despite the ambitious targets set by the EU and the UK to capture and store a significant amount of carbon dioxide annually by 2050, the feasibility and affordability of CCS remain in question. With most projects still in early stages and costs exceeding forecasted carbon prices, the success of CCS in Europe is uncertain. The challenges faced by existing CCS projects highlight the need for a reevaluation of the current approach towards carbon capture and storage.