Briefing Paper – Carbon Management

The U.S. is leading global CCUS development, driven by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, with over 120 projects in planning or construction. China is rapidly expanding its capacity, having commissioned its first million-ton project in 2022 and developing several large-scale demonstration projects. Both nations face significant barriers: the U.S. struggles with commercial bank financing and public perception, while China lacks a comprehensive regulatory framework and large-scale transport infrastructure. Under the Sunnylands Statement, the two countries aim to advance at least five large-scale cooperative CCUS projects each by 2030.

• The United States has a substantial pipeline of carbon management projects, with over 120 CCUS projects currently in planning or construction. While 15 operational facilities capture 22 Mtpa of CO2, new projects are expanding into hard-to-abate sectors like steel, cement, and chemical production.
• U.S. CCUS growth is heavily incentivized by the 2021 Infrastructure Investment and Jobs Act (IIJA), which allocated $12 billion, and the 2022 Inflation Reduction Act (IRA). The IRA's 45Q tax credits provide $50/tonne for geological storage, $85/tonne for point-source capture, and $180/tonne for direct air capture (DAC).
• China has transitioned CCUS from a strategic reserve to an integral part of its carbon neutrality framework. As of November 2022, China had over 100 R&D pilot or demonstration projects, with around 60 operational. Notable projects include the SINOPEC Qilu Petrochemical-Shengli Oilfield million-ton project and a 1.5 Mtpa coal power project in Zhengning, Gansu.
• China faces critical systemic barriers to CCUS scaling, including the absence of a comprehensive legal and regulatory framework, undefined ownership rights for geological storage, and a lack of structured financial incentives. The People’s Bank of China’s Carbon Reduction Facility, a key source of low-cost loans, is set to lapse at the end of 2024.
• There is a vast disparity in CO2 transport infrastructure: the U.S. operates a network exceeding 5,500 miles transporting over 66 million tonnes annually, whereas China's first commercial-scale pipeline (109 km) only began operation in 2023.
• The Sunnylands Statement establishes a bilateral commitment for the U.S. and China to advance at least five large-scale cooperative CCUS projects each by 2030, focusing on industrial and energy sources.

APA

World Resources Institute (n.d.). Briefing Paper – Carbon Management. https://files.wri.org/d8/s3fs-public/2024-07/2024-carbon-management-briefing-EN.pdf

Chicago

World Resources Institute. Briefing Paper – Carbon Management. n.d. https://files.wri.org/d8/s3fs-public/2024-07/2024-carbon-management-briefing-EN.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=Briefing Paper – Carbon Management |url=https://files.wri.org/d8/s3fs-public/2024-07/2024-carbon-management-briefing-EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendbriefing, author = {{World Resources Institute}}, title = {{Briefing Paper – Carbon Management}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/2024-07/2024-carbon-management-briefing-EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }