Investors need higher returns
Carbon markets alone will not deliver CCS at scale
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies
Compliance and voluntary carbon markets can support the financing of CCS, but additional tools such as government-backed CfDs and other subsidies will be needed to get large-scale deployment of the technology over the line, according to the Oxford Institute for Energy Studies (OIES). Allowance price volatility has so far prevented any CCS projects from being fully financed through an emission trading scheme (ETS). The EU ETS, the world’s leading compliance market of its type, is trading at around €65/t of CO₂, having dropped sharply since peaking at about €100/t last year. In order to incentivise large-scale adoption of CCS, allowance prices need to be at a substantial premium to the cost o
Also in this section
28 November 2025
The launch of the bloc’s emissions trading system in 2005 was a pioneering step, but as the scheme hits 21 its impact as a driver of decarbonisation is still open to debate
18 November 2025
Vicki Hollub, president and CEO of Occidental, has been selected as the 2026 recipient of the Dewhurst Award, the highest honour bestowed by WPC Energy. The Dewhurst Award celebrates exceptional leadership, groundbreaking innovation and a lifetime of significant achievements in sup-port of the development and advancement of the energy industry.
11 November 2025
Transition policies must recognise that significant industrial demand for carbon will continue even as economies hit net zero
6 November 2025
After years of pursuing ideologically driven climate leadership, Western powers are now stepping back under mounting political pressure and rising populist opposition—prompting concern essential climate action could be sidelined
