The gap between carbon capture and storage ambitions and available funding

The analysis finds a significant funding gap for European carbon capture and storage (CCS) projects that cannot recover costs through carbon pricing alone. By 2023, 55% of excess costs are uncovered, and a total shortfall of €10 billion is projected by 2030. While some countries like Norway, the UK, and the Netherlands have established specific incentive schemes, the report argues that additional targeted funding is required, particularly for high-cost sectors, to kickstart deployment and develop infrastructure.

• Announced public funding at both European and national levels is insufficient to support CCS projects that cannot recover their capital and operational costs solely through the carbon price.
• A funding deficit exists for projects starting by 2024, and by 2023, 55% of the excess costs for CCS projects are not covered by announced public funding.
• The funding gap is expected to widen through 2026 due to new projects and the scaling of existing ones planned for 2030, resulting in a total shortfall of €10 billion by the end of the decade, even if the carbon price reaches 93 €/t CO2 in 2030.
• There is a potential mismatch between when funding is allocated and when projects require investment commitments, as many projects are planned for 2030, which could lead to simultaneous funding needs that exceed evenly distributed annual budgets.
• Certain countries have implemented specific mechanisms to support CCS: the Netherlands uses the SDE++ scheme for long-term contracts; the UK utilizes the Carbon Capture and Storage Infrastructure Fund (CIF); and Norway has used a carbon tax for offshore production and government funding for capture and transport projects like Northern Lights.

APA

Clean Air Task Force (n.d.). The gap between carbon capture and storage ambitions and available funding. https://cdn.catf.us/wp-content/uploads/2022/01/12061446/CarbonCapture_FundingGap_Paper_Proof_12.14.21.pdf

Chicago

Clean Air Task Force. The gap between carbon capture and storage ambitions and available funding. n.d. https://cdn.catf.us/wp-content/uploads/2022/01/12061446/CarbonCapture_FundingGap_Paper_Proof_12.14.21.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=The gap between carbon capture and storage ambitions and available funding |url=https://cdn.catf.us/wp-content/uploads/2022/01/12061446/CarbonCapture_FundingGap_Paper_Proof_12.14.21.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendgap, author = {{Clean Air Task Force}}, title = {{The gap between carbon capture and storage ambitions and available funding}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2022/01/12061446/CarbonCapture_FundingGap_Paper_Proof_12.14.21.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }