The carbon capture industry is growing fast. As climate change becomes a bigger problem, governments and businesses are racing to find ways to reduce emissions. Carbon capture, utilization, and storage (CCUS) technology is at the center of this movement. But is it the future of climate tech?
1. The global carbon capture, utilization, and storage (CCUS) market was valued at approximately $3.5 billion in 2022
Carbon capture is already a multi-billion-dollar industry, with companies developing new ways to trap and store CO₂ emissions. This number shows that the market is not just an idea—it’s a real and growing industry.
The demand for carbon capture technology comes from industries that produce a lot of emissions, such as oil, gas, cement, and steel production. Companies in these industries face increasing pressure from governments and consumers to reduce their carbon footprint.
For businesses looking to enter this market, now is the time. Startups developing new carbon capture methods can find investors eager to fund innovative solutions. Companies that already produce high emissions can invest in existing carbon capture technology to stay ahead of regulations and avoid carbon taxes.
2. The CCUS market is projected to grow at a CAGR of 19-25% from 2023 to 2030
With such high growth rates, this industry is set to expand rapidly. A CAGR of 19-25% means that in less than a decade, the market will be several times larger than it is today.
This growth is fueled by government policies, corporate net-zero commitments, and advancements in technology. Investors should take note: industries with this level of projected expansion often see high returns, especially for early adopters.
For companies looking to take advantage of this trend, now is the time to act. Businesses that adopt carbon capture early will have a competitive edge as regulations tighten and carbon pricing becomes more common.
3. By 2030, the market size is expected to surpass $12 billion
The carbon capture market is not just growing—it’s accelerating. By 2030, experts predict it will be worth over $12 billion.
This expansion means that companies in related fields, such as renewable energy and carbon trading, will also see new opportunities. Entrepreneurs and investors should look at how they can benefit from this growing industry.
Businesses that are already working in clean energy can consider partnerships with carbon capture firms. Utility companies, for example, can integrate carbon capture into their power plants to lower emissions and benefit from government incentives.
4. Carbon capture capacity worldwide reached 40 million metric tons per year (Mtpa) in 2022
Current carbon capture projects remove about 40 million metric tons of CO₂ annually. While this is a significant number, it’s still a small fraction of global emissions.
Companies and governments are investing heavily in increasing this capacity. The challenge is scaling up these projects while reducing costs. Entrepreneurs developing more efficient ways to capture and store CO₂ will have a major advantage in this market.
Businesses should also pay attention to where these projects are being developed. Countries with strong climate policies, such as the U.S., Canada, and Europe, are leading in carbon capture investments.
5. The total planned carbon capture capacity could exceed 500 Mtpa by 2035
Looking ahead, the industry is set to grow even further. With planned projects, global carbon capture capacity could be more than ten times larger by 2035.
This massive increase presents opportunities for industries that rely on carbon capture to meet their sustainability goals. Companies that invest now will have an advantage over competitors that wait until regulations force them to act.
Investors should look at which companies are making long-term commitments to carbon capture. Those leading the charge now are likely to be the major players in the industry a decade from now.
6. More than 300 new CCUS projects were announced in 2022 alone
One of the best indicators of an industry’s growth is how many new projects are being developed. The fact that over 300 new CCUS projects were announced in a single year shows that carbon capture is becoming mainstream.
These projects span various sectors, including power generation, manufacturing, and even direct air capture. The rapid expansion of new initiatives means more opportunities for companies that provide services, equipment, and infrastructure related to carbon capture.
For entrepreneurs and suppliers, this is a sign that demand is growing. Companies involved in construction, engineering, and energy should consider how they can support this booming market.
7. The U.S. Inflation Reduction Act (IRA) increased the 45Q tax credit to $85 per ton for stored CO₂, driving investment
Government incentives play a major role in driving carbon capture adoption. The U.S. Inflation Reduction Act significantly increased tax credits for companies that capture and store CO₂, making it much more financially attractive.
This policy change has led to a surge in new projects. Companies that were previously hesitant due to high costs are now moving forward with carbon capture investments.
Businesses should explore how they can benefit from these incentives. Companies that qualify for the 45Q tax credit can significantly reduce their carbon capture costs, making it a smart financial decision in addition to an environmental one.
8. The EU has committed to capturing 450 Mt of CO₂ annually by 2050
Europe is taking carbon capture seriously, with a long-term goal of capturing 450 million metric tons of CO₂ per year by 2050. This ambitious target will require massive investment in new technologies and infrastructure.
European companies working in heavy industry should prepare for strict emissions regulations and look for ways to integrate carbon capture into their operations. Investors should also watch European markets for new carbon capture opportunities, as government support will drive industry growth.
9. China is targeting CO₂ capture of over 1 billion tons per year by 2060
China, the world’s largest emitter, is making bold moves in carbon capture. By 2060, the country plans to capture more than a billion tons of CO₂ annually.
This commitment signals huge growth for the carbon capture industry in China. Companies that can offer scalable, cost-effective solutions will have enormous opportunities in this market.
Businesses looking to enter China’s carbon capture sector should explore partnerships with local firms and government-backed initiatives. As China ramps up its efforts, those with established positions in the market will benefit the most.
10. The U.S. leads in CCUS projects, with over 70% of global projects in development
The United States is currently the global leader in carbon capture projects, accounting for more than 70% of all projects under development. This dominance is largely due to strong government support, tax incentives, and private sector investment.
For investors and companies looking to get involved in carbon capture, the U.S. is the place to be. Businesses should consider expanding their operations in the U.S. market to take advantage of the strong policy environment and funding opportunities.
11. Norway’s Northern Lights project will store up to 1.5 Mt of CO₂ annually
Norway has been a pioneer in carbon capture, and the Northern Lights project is one of the most advanced storage facilities in the world. This project, backed by the Norwegian government and major energy companies, aims to capture and store 1.5 million metric tons of CO₂ each year.
The project’s key innovation is its ability to store CO₂ under the seabed in the North Sea. This storage method is seen as a model for other countries looking to implement large-scale CO₂ storage.
Companies involved in shipping, energy, and carbon trading should pay close attention to how Northern Lights operates. The project has already secured agreements with companies in Europe that want to store their CO₂ safely.
As more businesses look for carbon storage options, similar projects will emerge around the world, creating opportunities for investment and innovation.
12. The cost of carbon capture ranges from $40 to $120 per ton, depending on the technology and source
One of the biggest barriers to widespread carbon capture adoption is cost. Currently, the price varies significantly based on the method used.
For example, capturing CO₂ from industrial processes like cement production is usually cheaper than direct air capture, which requires more energy.
To lower these costs, companies are working on new technologies that make carbon capture more efficient. Government subsidies, tax credits, and carbon pricing are also helping to make these projects financially viable.
Businesses looking to implement carbon capture should carefully evaluate the cost-benefit ratio. Some industries may find that carbon capture is already a cost-effective solution, especially when combined with government incentives.
For startups, developing technology that reduces the cost of capture could be a game-changer in this growing industry.
13. The direct air capture (DAC) market is expected to grow at a CAGR of 30% over the next decade
Direct air capture (DAC) is one of the most exciting and fast-growing areas of carbon capture. Unlike traditional methods that capture CO₂ at the source, DAC removes carbon dioxide directly from the air.
The challenge is that DAC is currently expensive, with costs ranging from $600 to $1,000 per ton. However, as technology advances and new facilities are built, these costs are expected to drop significantly.
Governments and investors are putting billions into DAC projects, betting that it will become a key tool in fighting climate change.
For businesses, this growth presents opportunities in several areas. Companies involved in renewable energy, engineering, and carbon utilization can find ways to support DAC projects.
Investors should look for emerging startups working on next-generation DAC technology, as breakthroughs in this field could be highly profitable.
14. ExxonMobil, Shell, and Chevron have invested over $10 billion collectively in CCUS projects
The biggest players in the energy industry are making serious commitments to carbon capture. ExxonMobil, Shell, and Chevron have already invested more than $10 billion in carbon capture and storage projects.
This investment shows that major fossil fuel companies see CCUS as part of their long-term strategy. These companies are under increasing pressure from regulators and shareholders to reduce their carbon footprint, and CCUS allows them to continue operating while meeting sustainability goals.
For businesses in related industries, this trend means there will be increasing demand for carbon capture services, technology, and infrastructure. Companies that can provide solutions to help energy giants scale their carbon capture efforts will find a growing market.
15. Global CCUS investment could exceed $100 billion by 2035
The level of investment in carbon capture is only going to increase. By 2035, experts predict that more than $100 billion will be invested in CCUS projects worldwide.
This investment will come from both the public and private sectors, as governments create policies to encourage carbon capture and companies see it as a necessary business strategy.
Startups and tech firms should take note—this is a space that will see a massive influx of funding. Companies developing new materials, sensors, and software for monitoring CO₂ capture and storage will find eager investors looking for the next big breakthrough.
16. The cement industry accounts for 7% of global CO₂ emissions, making it a key sector for CCUS deployment
Cement production is one of the largest sources of global carbon emissions, responsible for about 7% of all CO₂ released into the atmosphere. Because cement plants emit CO₂ as part of their chemical process, traditional decarbonization methods like switching to renewable energy aren’t enough.
Carbon capture is seen as one of the best solutions for cutting emissions in the cement industry. Major cement manufacturers are already testing CCUS technology, and governments are providing incentives to encourage adoption.
For businesses, this trend means there will be increased demand for CCUS solutions tailored to cement production. Companies that can create cost-effective capture technologies specifically designed for this industry will be in high demand.
17. CCUS could mitigate up to 15% of global CO₂ emissions by 2050
Carbon capture is not a small-scale solution—it has the potential to make a significant impact. If fully implemented, CCUS could help remove 15% of the world’s CO₂ emissions by 2050.
While this won’t solve climate change on its own, it’s a crucial part of a broader strategy that includes renewable energy, energy efficiency, and reforestation.
Companies should consider how they can integrate CCUS into their sustainability plans. Businesses that commit to long-term decarbonization strategies will be better positioned to meet future regulations and consumer expectations.
18. The oil and gas sector is responsible for over 50% of operational CCUS capacity today
Right now, most carbon capture projects are tied to the oil and gas industry. These companies have both the financial resources and the regulatory pressure to invest in carbon capture.
However, as CCUS technology improves, other industries—like manufacturing, transportation, and construction—are expected to adopt it as well.
For businesses outside the oil and gas sector, this is a sign that carbon capture is becoming a mainstream solution. Companies should start exploring how they can implement CCUS in their own operations before regulations force them to do so.
19. Over $30 billion in government incentives have been committed to CCUS since 2021
Government policies play a major role in shaping the carbon capture industry. Since 2021, more than $30 billion in incentives have been announced worldwide, helping businesses offset the high cost of CCUS technology.
This funding is being used for research, infrastructure, and subsidies that make it easier for companies to adopt carbon capture.
Businesses should look into available incentives in their country. Governments are eager to support CCUS projects, and companies that take advantage of these incentives now will be in a better position as the market grows.
20. The cost of DAC is currently $600–$1,000 per ton but is expected to fall below $200 per ton by 2040
Direct air capture is one of the most promising technologies in carbon capture, but it’s currently expensive. The high cost makes it impractical for widespread use at the moment.
However, costs are expected to drop significantly by 2040. As more companies invest in DAC and technology improves, the price per ton will decrease, making it a viable solution on a larger scale.
For businesses and investors, this means that DAC is an area worth watching. While it may not be cost-effective today, those who invest in DAC technology early could be in a strong position when prices drop and adoption increases.
21. Canada’s Pathways Alliance aims to capture and store 40 Mt of CO₂ annually by 2050
Canada is making major moves in carbon capture, and the Pathways Alliance—a coalition of six major oil sands companies—is leading the charge. Their goal is to capture and store 40 million metric tons of CO₂ annually by 2050.
This project is one of the most ambitious CCUS initiatives in North America and has strong government backing. It focuses on using carbon capture to help Canada meet its net-zero emissions target while keeping its oil and gas industry competitive.
For businesses, this presents a significant opportunity. Companies that supply carbon capture technology, pipeline infrastructure, and storage solutions will benefit from this large-scale initiative. Additionally, investors looking for stable, government-supported projects should closely watch how this alliance evolves.
22. The Middle East plans to capture over 50 Mt of CO₂ annually by 2035, led by Saudi Aramco and ADNOC
The Middle East, home to some of the world’s largest oil producers, is also betting big on carbon capture. Saudi Aramco and ADNOC are leading efforts to capture and store over 50 million metric tons of CO₂ per year by 2035.
Unlike Western countries, where carbon capture is often driven by government regulation, Middle Eastern nations see CCUS as a way to maintain their dominance in the energy market while reducing emissions.
Businesses working in the oil and gas supply chain should consider partnerships with companies in the Middle East. This region is investing heavily in CCUS infrastructure, and companies that can offer expertise in storage, pipeline transport, and carbon utilization will find lucrative opportunities.
23. The UK’s Net Zero Strategy includes £1 billion in CCUS funding by 2030
The UK government is investing £1 billion in carbon capture as part of its Net Zero Strategy, aiming to cut emissions and make Britain a leader in CCUS technology.
The UK is prioritizing industrial clusters—areas with a high concentration of factories and power plants—where carbon capture can be deployed at scale. Projects like the HyNet North West and the East Coast Cluster are already receiving government support.
For businesses and investors, the UK presents a stable and growing market for CCUS. Startups developing carbon capture solutions should explore government grants and private sector partnerships, while energy-intensive industries should consider implementing CCUS early to stay ahead of regulations.
24. Global carbon credit trading markets exceeded $900 billion in 2023, influencing CCUS investments
The carbon credit market is booming, surpassing $900 billion in 2023. This market allows companies to buy and sell carbon offsets, including those created through carbon capture projects.
This is a game-changer for CCUS because companies that capture and store CO₂ can now monetize their efforts by selling credits to businesses that need to offset their emissions.
Companies considering carbon capture should evaluate whether they can generate and sell carbon credits. Governments and businesses looking to go net-zero are willing to pay a premium for high-quality, verifiable carbon credits.
Investors should also watch this space, as the rise of carbon markets will fuel more funding for CCUS projects.
25. CCUS could create over 1 million jobs worldwide by 2040
As CCUS projects expand, so will job opportunities. Experts estimate that carbon capture could create over 1 million jobs globally by 2040.
These jobs will span multiple industries, including:
- Engineering and construction (building CCUS infrastructure)
- Research and development (improving capture efficiency)
- Operations and maintenance (running CCUS facilities)
- Legal and financial services (carbon credit markets, regulations)
Businesses should prepare for a talent shift as the demand for CCUS expertise grows. Companies in the energy and engineering sectors should start training workers in carbon capture technologies, while universities and technical schools should introduce specialized programs to meet the workforce demand.
26. The U.S. Department of Energy (DOE) has pledged $3.5 billion for CCUS demonstration projects
The U.S. is doubling down on CCUS with a $3.5 billion pledge from the Department of Energy (DOE) to fund large-scale demonstration projects.
This funding aims to accelerate the deployment of CCUS by supporting real-world projects that prove the technology works at scale. Companies that receive DOE funding will have a major advantage in developing and commercializing CCUS solutions.
Businesses should keep an eye on government funding opportunities. Companies developing carbon capture technologies should actively seek DOE grants, while those in related fields—such as engineering, transportation, and storage—can position themselves as partners in these projects.
27. The top 5 CCUS players control nearly 70% of the global market share
While CCUS is growing, it’s still dominated by a few key players. The top 5 companies in the industry hold nearly 70% of the market share, including major names like ExxonMobil, Shell, Chevron, and Occidental Petroleum.
For smaller companies, this presents both a challenge and an opportunity. Competing directly with these giants will be difficult, but partnering with them or supplying niche CCUS solutions can be a profitable strategy.
Investors should pay attention to mergers and acquisitions in the CCUS space. Large companies will likely acquire smaller firms with promising technology, providing opportunities for startups to be bought out at high valuations.
28. The Asia-Pacific CCUS market is expected to grow at 25% CAGR, the fastest worldwide
While North America and Europe are leading in CCUS deployment, Asia-Pacific is the fastest-growing market, with a projected CAGR of 25%.
Countries like China, Japan, South Korea, and Australia are aggressively investing in carbon capture. China’s industrial emissions are among the highest in the world, and its government is funding CCUS projects to meet its 2060 carbon neutrality goal.
Businesses should look at expansion opportunities in Asia-Pacific. Companies with expertise in carbon storage, industrial capture, and direct air capture will find demand in this region. Investors should also consider backing CCUS projects in Asia, as governments in the region are actively supporting the sector.
29. The cost of CCUS for coal-fired power plants is expected to drop by 30% by 2030
Coal-fired power plants are among the biggest carbon emitters, but CCUS could help reduce their impact. Right now, the cost of capturing CO₂ from coal plants is high, but it’s expected to drop by 30% by 2030.
This is significant because it makes carbon capture more affordable for power companies, increasing the likelihood of widespread adoption. Governments are also pushing for cleaner coal technologies through regulations and incentives.
Energy companies operating coal plants should start evaluating CCUS now to prepare for future regulatory changes. Investors should also look for startups working on cheaper, more efficient carbon capture solutions for power generation.
30. Carbon utilization markets, such as synthetic fuels and concrete, could be worth $6 trillion by 2050
One of the most exciting trends in CCUS is carbon utilization—using captured CO₂ to create valuable products like synthetic fuels, concrete, and plastics. By 2050, this market could be worth $6 trillion.
Unlike traditional carbon storage, where CO₂ is buried underground, carbon utilization turns emissions into profit. Companies are developing ways to convert captured carbon into clean fuels, building materials, and even consumer products.
For businesses, this is an enormous opportunity. Companies that can turn captured carbon into marketable products will be highly profitable. Investors should also keep an eye on startups working in this space, as demand for sustainable materials is rising rapidly.
wrapping it up
The carbon capture market is no longer a futuristic idea—it is happening now, and it is expanding at a rapid pace.
With governments setting ambitious climate targets, corporations investing billions, and new technologies driving costs down, CCUS is emerging as a crucial tool in the global fight against climate change.
