CCS? Impacts and Challenges

In the ESG (Environmental, Social, and Governance) and sustainability context, CCS stands for Carbon Capture and Storage (also sometimes called Carbon Capture and Sequestration).

Definition:

Carbon Capture and Storage (CCS) refers to a suite of technologies designed to capture carbon dioxide (CO₂) emissions produced from industrial processes or power generation, and then transport and store the CO₂ in a way that prevents it from entering the atmosphere—typically by injecting it into geological formations deep underground.

How CCS Works:

1. Capture:

   
   

   CO₂ is separated from other gases produced during industrial processes such as steel or cement manufacturing, or from fossil fuel combustion in power generation.

   
   

2. Transport:

   
   

   The captured CO₂ is compressed and transported—usually via pipelines—to a storage location.

   
   

3. Storage:

   
   

   The CO₂ is injected into deep underground rock formations (such as depleted oil and gas fields, or deep saline aquifers) for long-term storage, where it is monitored to ensure it doesn’t leak.

   
   

💡 Why CCS Matters in ESG and Sustainability:

CCS plays a key role in decarbonization strategies and climate change mitigation, especially in “hard-to-abate” sectors such as:

• Cement and steel manufacturing

• Petrochemical production

• Fossil fuel power generation

  
  

From an ESG perspective, CCS supports:

• Environmental (E): Reducing greenhouse gas (GHG) emissions to align with net-zero targets and the Paris Agreement.

• Social (S): Helping preserve jobs in industries transitioning to lower-carbon operations by making them more sustainable.

• Governance (G): Demonstrating strong corporate governance and accountability in climate strategy and emission reduction transparency.

🌐 Global Best Practices and Regulations:

• IPCC (Intergovernmental Panel on Climate Change) recognizes CCS as a crucial technology to achieve global net-zero goals by mid-century.

• EU Taxonomy for Sustainable Activities includes CCS-related investments as potentially sustainable under strict environmental safeguards.

• U.S. Inflation Reduction Act (IRA, 2022) provides significant tax credits (45Q) for companies implementing CCS projects.

• Global Reporting Standards (like TCFD and ISSB) encourage disclosure of CCS initiatives and their role in emission reduction strategies.

  
  

⚖️ Challenges and Considerations:

• High cost of capture, transport, and storage infrastructure.

• Energy intensity of CCS processes.

• Long-term storage risk and liability management.

• Public perception—some view CCS as enabling continued fossil fuel use rather than encouraging renewable transitions.

  
  

✅ In Summary:

Aspect	Description
Meaning	Carbon Capture and Storage (or Sequestration)
Goal	Prevent CO₂ from entering the atmosphere
Role in Sustainability	Supports decarbonization and net-zero commitments
ESG Link	Strengthens Environmental performance and climate governance
Main Challenge	High cost and technical complexity

References & Additional Readings:

1. https://blog.sintef.com/energy/the-safety-of-co2-storage/

2. https://www.globalccsinstitute.com/ipcc-report-reaffirms-carbon-capture-and-storage-as-a-critical-technology-for-mitigating-climate-change/

3. https://ec.europa.eu/sustainable-finance-taxonomy/

4. https://www.globalccsinstitute.com/global-status-of-ccs-2025/

#CCS

#Sequestration

#CarbonCapture

#Storage

#IPCC

#IRA

#TCFD

#ISSB

#EUTaxonomy

#CO2