Fossil fuel-exporting countries have the responsibility and resources to accelerate CCUS adoption

CCUS adoption faces multiple interlinked challenges across technological, economic, regulatory and social dimensions. Understanding this multi-faceted challenge through a sociotechnical systems lens, which focuses on technical, social, economic and regulatory dimensions to understand how these factors collectively interact and influence technology adoption and societal impact, is useful to devising and assessing suitable decarbonization interventions⁴.

Key barriers to deployment include high upfront technology costs, cross-value chain risks, regulatory uncertainties and public acceptance issues. Oil and gas exporters are well positioned to tackle these through targeted policies, investments and knowledge sharing. For instance, co-investment in shared CO₂ transport infrastructure can help to establish CCUS hubs and mitigate risks for early adopters. Implementation of contextually tailored regulatory frameworks can provide investor certainty for the scaling of new or first-of-a-kind CCUS technologies. Public engagement efforts can also be used to leverage existing societal support for sustainability initiatives across many oil- and gas-exporting countries.

Oil and gas exporters possess valuable assets and expertise that can accelerate CCUS deployment. The presence of anchor industries capable of shouldering initial investments de-risks projects and industrial clusters in oil- and gas-exporting nations offer ideal conditions for overcoming barriers⁵. The geographical proximity of large, cluster-based CO₂ sources and potential storage sites enables economies of scale⁶. Moreover, suitable geological storage capacity and existing infrastructure can be repurposed for CCUS, and geological and geophysical knowledge from oil and gas exploration can be repurposed for CO₂ storage site characterization and monitoring. Such capacity transfer can address knowledge gaps that otherwise result in uneven CO₂ storage prospects in different geographies⁷.

The workforce in oil- and gas-exporting countries’ energy sectors represents a critical energy transition resource. Their established energy sectors have relevant expertise in areas such as gas processing and subsurface operations. Engineering capabilities in process design, project management and large-scale infrastructure development from the fossil fuel industry are directly applicable to CCUS projects. With appropriate upskilling and retraining, skilled personnel can transition to roles in CCUS operations. This addresses the potential shortage of qualified workers that could otherwise hinder, or even derail, rapid CCUS scale-up.

Knowledge-sharing and capacity-building initiatives led by oil and gas exporters, such as the Carbon Sequestration Leadership Forum, Carbon Management Challenge and Net-Zero Producers Forum, can have a global impact. By disseminating best practices and operational data from early CCUS projects and initiatives, they can help to reduce costs and risks for subsequent adopters across sectors worldwide.

Supportive policy and regulatory environments are essential for CCUS deployment⁸. Oil- and gas-exporting countries can lead in developing comprehensive frameworks, tailored to context. In countries where CCUS implementation is distributed among several actors, addressing liability, permitting and long-term storage responsibilities is critically important⁹. Policy mechanisms with demonstrated efficacy for industrial decarbonization¹⁰, such as carbon pricing via emissions trading schemes and carbon taxes, can not only provide economic incentives for CCUS adoption, but also validate the extent to which oil and gas exporters are actively reducing the carbon footprint of their own operations.

Innovative business models are essential for overcoming cross-value chain risks in CCUS projects. The concept of CCS-as-a-Service, where specialized entities manage capture, transport and/or storage operations, shows promise. State-owned energy companies in oil- and gas-exporting countries are well positioned to establish such services as business units that operate domestically and/or internationally, leveraging their existing capabilities and financial resources¹¹.

Public–private partnerships can have a key role in de-risking investments and catalysing market development. Government co-investment in early projects and infrastructure can attract private capital, and public entities can gradually reduce their stake if viable CCUS ecosystems are established.

High-income oil- and gas-exporting countries need to recognize their unique position and responsibility in accelerating CCUS deployment. By leveraging their resources, expertise and available policy tools, these countries can overcome critical barriers and stimulate and accelerate global adoption (Fig. 1). This leadership is not only an ethical imperative, but also an economic opportunity as the world transitions to low-carbon energy systems to curb emissions.

Scaling up the carbon capture, utilization and storage (CCUS) technology value chain faces multiple interlinked challenges, which can be mapped as specific sociotechnical capacity needs, barriers and enablers. Four oil and gas exporters serve as key examples of countries that have the obligation and resources to support CCUS market adoption. Each economy is considered high-income based on the World Bank definition and all are members of the Carbon Sequestration Leadership Forum, Carbon Management Challenge and Net-Zero Producers Forum.

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Governments, industry leaders and researchers in oil- and gas-exporting countries must act. Ambitious national CCUS targets need to be set and stuck to, alongside broader decarbonization efforts. This adherence will require investment in shared infrastructure, establishment of supportive regulatory frameworks and international knowledge sharing. Through such concerted efforts, CCUS can be deployed at the speed and scale necessary to meet climate goals while further enabling a more just transition within economies that have been built around oil and gas industries.