CCS? Impacts and Challenges

EcoVision
Nov 12
2 min read

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:

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.
Transport:

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