Letter on carbon: Can CCUS capture enough private capital?

Emerging industry must work with policymakers to convince a broader pool of investors to buy into its long-term potential

Private investment in CCUS has gained remarkable momentum over the last five years, given how expensive and risky most projects are. It has grown more than fifteenfold since 2020, reaching over $5b, with more than 30 projects achieving FID in the past two years alone, according to the IEA. However, on closer inspection, the available sources of finance look quite limited. A handful of non-recourse deals have accounted for the lion’s share of commercial debt raised by the sector over the past two years. Private equity investment in projects remains limited and largely concentrated in North America. That is not surprising, given the uncertainty over potential returns and the massive upfront ca