Rethinking CO2

The potential of the carbon capture utilization and storage market

Addressing climate change led to the perception of carbon dioxide (CO₂) being mainly negative. This problem-oriented view concentrates on the elimination of CO₂ as a harmful climate gas. Carbon capture is generally viewed critically these days, even though climate scientists point to the need for carbon capture and carbon removal. New ready-to-implement technologies and new regulation offer opportunities in the CO₂ market such as the safe storing of CO₂ or its use as a raw material in a circular economy. With governments putting a price tag on carbon, but customers also paying to be carbon neutral or paying for CO₂ as a raw material, there is an expected market potential for both storage and utilization that might reach oil market dimensions in 2050.

In this report, we have analyzed how to create value from CO₂ and what it needs to unlock the German carbon capture utilization and storage (CCUS) market.

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The role of carbon capture to reach climate targets

As current climate action is insufficient, carbon capture could be one building block to reach climate targets through two roles, based on future emission pathways:

Current policies are projected to result in global warming of around 3°C (above pre-industrial levels by 2100) and thereby making current global climate action insufficient to reach climate goals. The corresponding implementation gap between action and target will need to be filled with building blocks helping to reduce emissions. Carbon capture, as one of these building blocks, can help in reaching climate targets – via two roles:

1. In addressing the implementation gap by mitigating up to 14% of emissions, especially in hard-to-abate sectors
2. In removing 20-660 Gt* CO₂ from the atmosphere with engineered carbon removal solutions, as natural sinks will not be sufficient
   

^{* The IPCC estimates an aggregated need for removal of between 20 and 660 Gt by 2100}