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Capturing carbon dioxide (CO2) to use or store remains one of the costliest ways to cut emissions. That means the technique – known as CCUS – has yet to scale up, still relies on taxpayer support and should only be pursued after other green solutions, key industry players told a recent conference in London.

Companies and governments that depend heavily on fossil fuel revenues have long promoted CCUS technology as a way to carry on producing and consuming fossil fuels while keeping emissions down.

But over 50 years since the first project began operating, CCUS is still barely used. According to the Global CCS Institute, just 50 facilities were running around the world in 2024, with the capacity to capture about a thousandth of global emissions.

Most of those capture CO2 from gas facilities and pump it underground to squeeze more oil from reservoirs, a process called enhanced oil recovery (EOR).

At this month’s Carbon Capture Global Summit 2025 – organised by Leader Associates – business representatives admitted that the technology has failed to expand on a commercial scale despite strong government support. CCUS momentum has even “plateaued a wee bit” in 2025, said Mhairidh Evans, head of CCUS research at consultancy Wood Mackenzie.

Subsidies still needed

Julia Dubinina, a former Shell manager now developing oil and gas firm Harbour Energy’s carbon storage business, was asked if CCUS is entering its “deployment phase”. She replied that it is “too early to talk about scale”, adding “we need to be careful of not trying to fly before we can walk”. “There is still quite a lot of work to be done,” she added.

She remains cautious partly because “public funding is an absolute must for every project, and scaling is kind of limited when you need public funding for every single project,” she explained.

The UK and Norwegian Prime Ministers are shown Equinor’s Northern Lights CCS facility on December 16, 2024 in Bergen, Norway. (Picture: Leon Neal/Reuters)

The industry depends on subsidies because capturing and transporting CO2 is among the most expensive climate solutions. In 2021, Intergovernmental Panel on Climate Change scientists reported that while solar and wind investments usually save money, CCUS costs $50-200 per tonne of CO2 captured.

In a keynote speech at the conference, Katharina Beumelberg, sustainability chief at Heidelberg Materials – which produces cement, aggregates, concrete and asphalt – acknowledged the sector’s reliance on taxpayer support.

Praising the Norwegian government’s funding for one of the company’s CCUS projects, she said: “We need these funding processes to be able to do this pioneering work because, otherwise, from the private sector it would be unrealistic to get there”. She added: “Whatever we do in the end needs to make money.”

Beumelberg called for more taxpayer support for CCUS. Noting that three-fifths of Heidelberg’s products are used in government-funded projects, she said governments should create a market for carbon-free products, “recognising that a carbon-free product in the end does need to come with different pricing because it is carbon-free”.

Katharina Beumelberg, Chief Sustainability and New Technologies Officer of Heidelberg Materials (Photo: Simon Callaghan)

Because of its high cost, most experts say CCUS should be reserved for sectors that are hard to clean up in other ways like steel, chemicals and particularly cement.

Expensive last resort

Cement-making produces 8% of global emissions, more than any country apart from the US and China, as fossil fuels are burned to heat limestone and the chemical process itself releases CO2.

But Rozemarijn Wesby, vice-president of CCUS at the world’s biggest cement company Holcim, told the conference that even in cement, the high cost of CCUS means it is only the “last piece of the puzzle”.

That’s because Holcim’s decarbonisation goal is more important than its CCUS goal, she said – and CCUS is one of the more expensive ways to cut emissions. For that reason, Holcim is first ensuring that its power is “green”, fuels are “sustainable and renewable” and emissions avoided “wherever possible”.

Rozemarijn Wesby, Holcim VP CCUS and head of Business Development, speaks at the Carbon Capture Global Summit 2025 (Photo: Simon Callaghan)

Evans of Wood Mackenzie echoed this, saying governments and companies should prioritise energy efficiency, then “electrifying everything that we possibly can with renewables, then fuel switching [and] substituting” before “at the last, directly abating or removing carbon dioxide”.

Wesby stressed that using CCUS only as a last step limits costs and prevents oversized “downstream” infrastructure. The CCUS infrastructure discussed at the conference included pipelines and trains to move CO2, terminals to store, compress and load it onto ships, and underground storage sites.

A Nature study published this month, however, found that the world’s CO2 storage potential is far more constrained than previously thought. Lead author Matthew Gidden of the University of Maryland argued in a post on CarbonBrief that governments should prioritise who gets access to storage space.

Carbon capture for gas plants?

Electricity is one of the easiest sectors to decarbonise because renewable power is often cheaper than fossil fuels. As of 2024, only five fossil-fuel power plants had CCUS, all of which used the CO2 for EOR. Only one, Huaneng Yangpu in China, is a gas power station and that is just a demonstration project.

Nonetheless, the UK government financially supports a CCUS project at a gas plant in England’s Northeast and is considering support for another in Wales run by power firm Uniper. Mike Lockett, Uniper’s UK head, said that Germany’s new centre right-led government had also “opened the door for gas-fired CCS”.

Supporters say such plants produce flexible and dispatchable power, unlike solar and wind. Critics argue batteries, demand management, nuclear and cross-border interconnections can provide sufficient backup.

Greg Jackson, the chief executive of Octopus, a UK-based clean energy, electric vehicle services and heat pump company, said recently that – while it’s useful for cement – subsidising CCUS for energy is misguided.

Octopus CEO Greg Jackson speaks to the UK’s finance minister Rachel Reeves on July 18, 2024 (Kirsty O’Connor/Treasury)

Jackson, who is also an official adviser to the UK government, told the Financial Times Weekend Festival that the technology has “been a gift to the oil and gas industry to carry on what they’re doing and carry on the fiction that somehow enormous amounts of public money should enable them to keep doing it”.

“It’s a boondoggle for oil and gas – and we would be better off in the UK just burning unabated gas, because the cheaper we make electricity, the cheaper our heat pumps and electric cars are going to be and they are the key to emissions reductions,” he said.

Risk of pipeline leaks

Building out CCUS on a large scale will involve vast CO2 pipeline networks. These come with risks: In 2020, a landslide caused a carbon pipeline to leak in the US state of Mississippi, hospitalising at least 45 people. High concentrations of CO2 can cause headaches, drowsiness, elevated heartbeat and blood pressure, and even death.

    Climate Home News asked Niko Bosnjak, policy and communications lead at carbon pipeline operator Open Grid Europe (OGE), which is converting German gas pipelines to carry CO2, if similar leaks could happen in Europe.

    He said he had heard about the Mississippi incident, although he didn’t “know exactly what happened”. OGE, he added, is working on a security framework and “looking at the thickness of the pipeline in a way that is supposed to provide more security”.

    Despite such concerns, CCUS has continued to receive strong political backing. US President Donald Trump, for example, cut subsidies for other green technologies but expanded support for CCUS, while India is preparing CCUS subsidies.

    “The need for CCS is broadly recognised at the political level,” said Shell’s CCS general manager Kelly Ripley. Oil and gas giant Shell is launching CCUS projects – especially in North America and northwest Europe – she added, and is “doing a lot of learning from this political and regulatory perspective and also hoping to bring other countries on the same journey with us”.

    The post Industry says carbon capture still an expensive last resort to cut emissions appeared first on Climate Home News.

    Industry says carbon capture still an expensive last resort to cut emissions

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    Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition

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    Indigenous leaders from across the Amazon have warned that stopping the expansion of oil drilling into their territories will be a crucial test for a growing international coalition committed to transitioning away from fossil fuels.

    As 60 countries discussed at a landmark conference in Santa Marta, Colombia, pathways to end the world’s reliance on fossil fuels, Indigenous groups said the process risks losing credibility if governments continue opening new oil frontiers in the Amazon.

    Their central demand was the establishment of fossil fuel “exclusion zones” across Indigenous territories and biodiverse areas of the rainforest, permanently barring new oil and gas expansion in one of the world’s most critical ecosystems. Indigenous representatives proposed establishing protected “Life Zones”, which they said would provide legal safeguards against governments and companies seeking to expand extraction into their lands.

    But Indigenous delegates left the conference frustrated as the final synthesis report drafted by co-chairs Colombia and the Netherlands failed to include the proposal.

    In a statement at the end of the conference, Patricia Suárez, from the Organization of Indigenous Peoples of the Colombian Amazon (OPIAC), said formally declaring Indigenous territories – especially those inhabited by peoples in voluntary isolation – as exclusion zones for extractive industries was “an urgent measure”.

    “If the heart of the conference does not begin there, it risks remaining a set of good intentions that fails to respond to either science or our Indigenous knowledge systems,” she added.

    Pushing for a new oil frontier

    Campaigners say the pressure on the Amazon is intensifying just as scientists warn the rainforest is nearing irreversible collapse. Around 20% of all newly identified global oil reserves between 2022 and 2024 were discovered in the Amazon basin, fuelling renewed interest from governments and companies seeking to develop the region as the world’s next major oil frontier.

    Ecuador has moved ahead with the auction of new oil blocks in the rainforest, while the country’s right-wing president Daniel Noboa has promoted the region as a “new oil-producing horizon” and backed efforts to expand fracking with support from Chinese companies.

      In Santa Marta, a coalition of seven Indigenous nations from Ecuador issued a declaration condemning the government, which did not participate in the conference.

      “While the world talks about energy transition, our government is pushing for more oil in the Amazon,” said Marcelo Mayancha, president of the Shiwiar nation. “Throughout history, we have always defended our land. That is our home. We will forever defend our territory.”

      Indigenous groups also warned that Peru – another South American nation absent from the conference – plans to auction new oil blocks in the Yavarí-Tapiche Territorial Corridor, a highly sensitive region along the Brazilian border that contains the world’s largest known concentration of Indigenous peoples living in voluntary isolation.

      COP30 host under scrutiny

      Indigenous leaders also criticised Brazil, arguing that despite its international climate leadership, the country is simultaneously advancing major new oil projects in the Amazon region.

      Luene Karipuna, delegate from Brazil’s coalition of Amazon peoples (COIAB), said the oil push threatens the stability of the rainforest. Not far from her home, in the northern state of Amapá, state-run oil giant Petrobras is currently exploring for new offshore oil reserves off the mouth of the Amazon river.

      Brazil participated in the Santa Marta conference and was among the countries that first pushed for discussions on transitioning away from fossil fuels at COP negotiations. Yet the country is also planning one of the largest expansions in oil production in the world, according to last year’s Production Gap report.

      Veteran Brazilian climate scientist Carlos Nobre told Climate Home that the country’s participation at the Santa Marta conference contrasted with its oil and gas production targets. “It does not make any sense for Brazil to continue with any new oil exploration,” he said, and noted that science is clear that no new fossil fuels should be developed to avoid crossing dangerous climate tipping points.

      He added that the Brazilian government faces pressures from economic sectors, since Petrobras is one of the countries top exporting companies. “They look only at the economic value of exporting fossil fuels. Brazil has to change.”

      The COP30 host also promised to draft a voluntary proposal for a global roadmap away from fossil fuels, which is expected to be published before this year’s COP31 summit.

      “In Brazil, that advance has caused so many problems because it overlaps with Indigenous territories. Companies tell us there won’t be an impact, but we see an impact,” Karipuna said. “We feel the Brazilian government has auctioned our land without dialogue.”

      For Karipuna and other Indigenous leaders, establishing exclusion zones across the Amazon is no longer just a regional demand, but a prerequisite to prevent the collapse of the rainforest.

      “That’s the first step for an energy transition that places Indigenous peoples at the centre,” she added.

      The post Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition appeared first on Climate Home News.

      https://www.climatechangenews.com/2026/05/08/indigenous-amazon-oil-expansion-fossil-fuel-phase-out-coalition-santa-marta/

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      Kenya seeks regional coordination to build African mineral value chains

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      African leaders have intensified calls for governments to stop exporting raw minerals and step up efforts to align their policies, share infrastructure and coordinate investment to add value to their resources and bring economic prosperity to the continent.

      In a speech to the inaugural Kenya Mining Investment Conference & Expo in Nairobi this week, Kenyan President William Ruto became the latest African leader to confirm the country will end exports of raw mineral ore. The East African nation has deposits of gold, iron ore and copper and recently launched a tender for global investors to develop a deposit of rare earths, which are used in EV motors and wind turbines, valued at $62 billion.

      Kenya is among more than a dozen African nations that have either banned or imposed export curbs on their mineral resources as they seek to process minerals domestically to boost revenues, create jobs and capture a slice of the industries that are producing high-value clean tech for the energy transition.

        “For too long we have extracted and exported raw materials at the bottom of the value chain, while others have processed, refined, manufactured and captured the greater share of economic value,” Ruto told African ministers and stakeholders gathered at the mining investment conference in Nairobi.

        As a result, Africa currently captures less than 1% of the value generated from global clean energy technologies, he said. To address this, Kenya, in collaboration with other African nations, “will process our minerals here in the continent, we will refine them here and we will manufacture them here”, he added.

        Mineral export restrictions on the rise

        Africa is a major supplier of minerals needed for the global energy transition. The continent holds an estimated 30% of the world’s critical mineral reserves, including lithium, cobalt and copper. The Democratic Republic of Congo produces roughly 70% of global cobalt, a key ingredient in lithium-ion batteries, while countries such as Guinea dominate bauxite production, and Mozambique and Tanzania hold significant graphite deposits.

        But African governments have struggled to attract the investment needed to turn their vast mineral wealth into a green industrial powerhouse. Recently Burundi, Malawi, Nigeria and Zimbabwe are among those that have resorted to banning the export of unrefined minerals to incentivise foreign companies to invest in value addition locally.

        Outdated geological data limits Africa’s push to benefit from its mineral wealth

        This week, Zimbabwe exported its first shipments of lithium sulphate, an intermediate form of processed lithium that can be further refined into battery-grade material, from a mine and processing plant operated by Chinese company Zhejiang Huayou Cobalt.

        After freezing all exports of lithium concentrate – the first stage of processing – earlier this year, the government introduced export quotas and will ban all exports from January 2027.

        Export restrictions on critical raw materials have grown more than five-fold since 2009, found a report by the Organisation for Economic Co-operation and Development (OECD) published this week. In 2024, a more diverse group of countries, including many resource-rich developing economies in Africa and Asia, introduced restrictions, including Sierra Leone, Nigeria and Angola.

        This is “a structural shift in the wrong direction,” Mathias Cormann, the OECD’s secretary-general, told the organisations’ Critical Minerals Forum in Istanbul, Turkey, this week.

        “We understand the motivations: building local industries, managing environmental impacts, capturing greater value domestically. But our research is quite clear. Export restrictions distort investment, reduce volumes and undermine supply security often while delivering limited gains in value added,” he said.

        In-country barriers to success

        Thomas Scurfield, Africa senior economic analyst at the Natural Resource Governance Institute, told Climate Home News that export restrictions “can look like a promising route to local value addition” for cash-strapped African mineral producers but have “rarely worked” unless countries already have reliable energy, infrastructure and competitive costs for processing.

        “Without those conditions, bans may simply push companies to scale back mining rather than scale up processing,” he said.

        Alaka Lugonzo, partnerships lead for Africa at Global Witness, identified gaps in practical skills and infrastructure as other major barriers. “You need engineers, geologists, marketers,” Lugonzo said, warning that graduates are increasingly unable to match the pace of industry change.

        On infrastructure, she said that plentiful and stable energy supplies are vital and while Kenya has relatively robust road networks, they are insufficient for industrial-scale operations.

        “Meaningful value addition and real industrialisation requires heavy machinery… and you will need better infrastructure,” she said, highlighting persistent last-mile challenges in mining regions where “there’s no railway, there’s no electricity, there’s no water”.

        Export capacity is another concern, she said, particularly whether existing port systems could handle increased volumes of processed minerals.

        Regional approach recommended

        Scurfield said that through regional cooperation – including pooling supplies, specialising across different stages of refining and manufacturing, and building larger regional markets – “African countries could overcome many domestic constraints that make going alone difficult”.

        That’s what close to 20 African governments are working to deliver as part of the Africa Minerals Strategy Group, which was set up by African ministers and is dedicated to foster cooperation among African nations to build mineral value chains and better benefit from the energy transition.

        Africa urged to unite on minerals as US strikes bilateral deals

        Nigerian Minister of Solid Minerals Dele Alake, who chairs the group, said “true collaboration” between countries, including aligning mining policies, sharing infrastructure, coordinating investment strategies and promoting trade across the continent, will create the conditions for long-term investments that could turn Africa into “a formidable and competitive force within the global mineral supply chain”.

        “The time has come for Africa to redefine its place within the global mineral economy and that transformation must begin with regional integration and regional cooperation,” he told the mining investment conference in Nairobi.

        Lugonzo of Global Witness agreed, saying that value-addition would benefit from adopting a continental perspective. “Why should Kenya build another smelter when we can export our gold to Tanzania for smelting, and then we use the pipeline through Uganda to take it to the port and we export it?” she asked.

        To facilitate that, there is a need to operationalise the Africa Free Trade Continental Agreement (AFTCA), she added. “That agreement is the only way Africa is going to move from point A to point B.”

        The post Kenya seeks regional coordination to build African mineral value chains appeared first on Climate Home News.

        https://www.climatechangenews.com/2026/04/30/kenya-seeks-regional-coordination-to-build-african-mineral-value-chains/

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        Key green shipping talks to be held in late 2026

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        The future of the global shipping industry – and its 3% share of global emissions – will be decided in three weeks of talks in the third quarter of this year, after a decision taken in London on Friday.

        At the International Maritime Organisation (IMO) headquarters this week, governments largely failed to substantively negotiate a controversial set of measures to penalise polluting ships and reward vessels running on clean fuels known as the Net-Zero Framework. The green shipping plan has been aggressively opposed by fossil fuel-producing nations, in particular by the US and Saudi Arabia.

        This week, countries delivered statements outlining their views on the measures in a session that ran from Wednesday into Thursday. Then, late on Friday afternoon, they discussed when to negotiate these measures and what proposals they should discuss.

        After a lengthy debate, which the talks’ chair Harry Conway joked was confusing, governments agreed to hold a week of behind-closed-door talks from 1 September to 4 September and from 23 November to 27 November.

        Following these meetings, which are intended to negotiate disagreements on the NZF and rival watered-down measures proposed by the US and its allies, there will be public talks from November 30 to December 4.

          Last October, talks intended to adopt the NZF provisionally agreed in April 2025 were derailed by the US and Saudi Arabia, who successfully persuaded a majority of countries to vote to postpone the talks by a year.

          Those talks, known as an extraordinary session, are now scheduled to resume on Friday December 4 unless governments decide otherwise in the preceding weeks. While this Friday session will be in the same building with the same participants as the rest of the week’s talks, calling it the extraordinary session is significant as it means the NZF can be voted on.

          Em Fenton, senior director of climate diplomacy at Opportunity Green said that the NZF “has survived but survival is not a victory” and called for it to be adopted later this year “in a way that maintains urgency and ambition, and delivers justice and equity for countries on the frontlines of climate impacts”.

          NZF’s supporters

          The NZF would penalise the owners of particularly polluting ships and use the revenues to fund cleaner fuels, support affected workers and help developing countries manage the transition.

          Many governments – particularly in Europe, the Pacific and some Latin American and African nations – spoke in favour of it this week.

          South Africa said the fund it would create is “the key enabler of a just transition” and its removal would take away predictable revenues from African countries. Vanuatu said that “we are not here to sink the ship but to man it”.

          Australia’s representative called it a “carefully balanced compromise”, as it was provisionally agreed by a large majority after years of negotiations, and warned that failing to adopt it would harm the shipping industry by failing to provide certainty.

          Santa Marta summit kick-starts work on key steps for fossil fuel transition

          Canada’s negotiator said that if it was weakened to appease its critics like the US and Saudi Arabia, this would disappoint those who think it is too weak already like the Pacific islands.

          A large group of mainly big developing countries like Nigeria and Indonesia did not rule out supporting the framework but called for adjustments to help developing countries deal with the changes. Nigeria called for developing countries to be given more time to implement the measures, a minimum share of the fund’s revenues and discounts for ships bringing them food and energy.

          According to analysis from the University of College London’s Energy Institute, the countries speaking in support of the NZF include five countries which voted with the US to postpone talks in October and a further ten countries which did not take a clear position at that time. Most governments support the NZF as the basis for further talks, the institute said.

          Opposition remains

          But a small group of mainly oil-producing nations said they are opposed to any financial penalties for particularly polluting ships.

          They support a proposal submitted by Liberia, Argentina and Panama which has proposed weakening emission targets and ditching any funding mechanism for the framework involving “direct revenue collection and disbursement”.

          Argentina argued that the NZF would harm countries which are far from their export markets and said concerns over that cannot be solved “by magic with guidelines”. They added that, as a result, the NZF itself needs to be fundamentally re-negotiated.

          The UCL Energy Institute said that just 24 countries – less than a quarter of those who spoke – said they supported Argentina’s proposal.

          While this week’s talks did not see the kind of US threats reported in October, their delegation did leave personalised flyers on every delegate’s desk which were described by academics, negotiators and climate campaigners as misleading.

          One witness told Climate Home News that junior US delegates arrived early on Wednesday and placed flyers behind governments’ name plates warning each country of the costs they would incur if the NZF is adopted.

          The figures on a selection of leaflets seen by Climate Home News ranged from $100 million for Panama to $3.5 billion for the Netherlands. “They are trying to scare countries away from supporting climate action with one-sided information”, one negotiator told Climate Home News.

          A flyer left on Pakistan’s desk, shared by a witness with Climate Home News

          They added that the calculations, by the US State Department’s Office of the Chief Economist, ignore the fact that the money raised would be shared to help poorer countries’ transition as well as ignoring the economic costs of failing to address climate change.

          Tristan Smith, an academic representing the Institute of Marine Engineering, Science and Technology, told the meeting that the calculations were “opaque” and flawed as they overstate the contribution of fuel cost to trade costs.

          A US State Department Spokesperson said in a statement that they “firmly stand behind our estimates” which were shared “in good faith” and to “provide an additional tool to policymakers as they contemplate the true economic burden over the NZF”.

          The post Key green shipping talks to be held in late 2026 appeared first on Climate Home News.

          https://www.climatechangenews.com/2026/05/01/key-green-shipping-talks-to-be-held-in-late-2026/

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