ING forecasts steady growth for carbon capture and storage (CCS) market despite challenges
Global financial services provider ING has predicted continued growth for the carbon capture and storage (CCS) market, despite facing obstacles at the start of 2024.
According to ING, unrealistic expectations for rapid growth in the CCS sector this year should give way to more realistic expectations for steady progress. The nascent CCS industry faces challenges, including uncertainty stemming from upcoming elections in the EU and US.
A major obstacle for the CCS market is the high cost of carbon capture technology, which remains a significant bottleneck hindering market expansion. This cost challenge prevents the market from growing at the necessary rate to effectively mitigate the climate crisis.
However, there is optimism as governments worldwide increasingly express support for CCS solutions. Bloomberg New Energy Finance predicts an eightfold increase in carbon capture capacity by 2030, reflecting this growing governmental backing.
Despite these positive developments, the current global CCS capacity only captures and stores a mere 0.1% of global CO2 emissions. To effectively limit rising temperatures, this figure must reach 15% by mid-century. Beyond 2050, the world will need to continue deploying CCS and carbon removal technology to achieve negative emissions and mitigate the effects of global warming.
While ING views CCS as a promising market in the long run, the company emphasizes the real-world factors that will influence the market in 2024. These include upcoming elections in the US, EU, and India, demand from large emitters for CCS solutions, carbon pricing mechanisms, and social acceptance of CCS technology.
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