Wood Mackenzie, the global leader in providing data analytics and solutions in sustainability and renewable energy has recently rolled out a media statement on cost brackets for expanding CCUS, worldwide. It has predicted an investment of around $196 billion in 2034.
What Does Wood Mackenzie’s 10-Year CCUS Market Forecast Say?
In this analysis, Wood Mackenzie has estimated that global carbon capture capacity can surge up to 440Mtpa and storage capacity will go up to 664 Mtpa. The combined process will require $196bn of total investment by 2034 out of which USD 80B is expected to come from the North American and European Governments.
We have discovered from the report that nearly half of global investment focuses on CO2 capture. The remaining half will be distributed between the transport and storage sectors at $53B and $43B, respectively. Plans are underway to allocate 70% of the total value chain investment in North America and Europe. The report has further emphasized that increasing production projections does not mean that Wood Mackenzie expects carbon capture supply to meet immediate demands. Long-term projects anticipated for 2034 need up to 640 Mtpa of CO2 storage, but expected commissions are lacking by 200 Mtpa.
Hetal Gandhi, APAC CCUS lead with Wood Mackenzie has put her insights in the press release.
She said out of the total announced projects, 71% are in North America and Europe, backed by government incentives. The US Inflation Reduction Act, UK business models, Canada’s Investment Tax Credit, and the Netherlands SDE++ scheme are key contributors. The new EU Industrial Carbon Management Strategy is also expected to boost European projects. She highlighted that China and India are the largest emitters in the Asia-Pacific region but lack proper CCS infrastructure.
Her predictions say that the power and chemical sectors will face significant gaps between demand and supply until 2034. This region needs utmost CCUS upgradation. Notably, China, India, Latin America, the Middle East, and Africa face development constraints due to a lack of policy, regulatory frameworks, and funding support. Government funding for CCUS in key countries totals around $80 billion. The US leads with 50% of the total, followed by the UK at 33% and Canada at 10%.
source: Wood Mackenzie
Using the Investment Effectively, A Wood Mac Study
Following the previous analysis, WoodMac has deep-dived into the role of CCUs in global decarbonization. The research wing has analyzed that some countries are investing in CCUS to decarbonize tough sectors like cement, chemicals, steel, refining, and power. On the other hand, some view CCUS as a long-term decarbonization tool.
Hetal has schemed out some important points to effectively utilize the investment. She believes that CCUS can be most effective when the technology is affordable and sustainable infrastructure is in place for carbon capture and storage. The key focus should be on heavy emitters.
CCUS has garnered significant attention for addressing climate change. Currently, the global CCUS capacity is around 63 Mtpa, which might surge to 1,700 Mtpa by 2050. However, to keep global warming within 1.5 degrees above pre-industrial levels, capacity would need to reach 7,750 Mtpa. Presently, most CCUS projects are targeting the power and gas sector. In the future, CCUS will be crucial for the cement and steel industries, which have limited alternatives to fossil fuels. The production of blue hydrogen will also benefit significantly from CCUS.
Click here to know what 2024 looks like for CCUS, as per Wood Mac.
source: Wood Mackenzie
CCUS Future: Challenges Amid Opportunities
Wood Mac has also outlined some of the challenges of CCUS. The team analyzed that despite progress, CCUS uptake remains limited. Fauzi Said, senior research analyst at Wood Mackenzie, has developed one solution focusing on hub-based storage ecosystems. He said,
“With storage capacities more concentrated than the spread-out capture capacities, hub-based storage ecosystems will evolve especially in Europe and APAC.”
CO2 sequestering costs are high compared to current carbon prices and practically no revenue is in it. Successful projects have managed costs with incentives, but future success relies on effective policies and well-structured carbon pricing schemes. Furthermore, amine-based processes dominate CCUS, which is not enough. They need more advanced technology to capture CO2 cheaply and with scarce carbon concentration. Another challenge is carbon dioxide’s corrosive nature which makes transportation costly and storage challenging. Thus, cost is a significant factor driving the process.

source: Wood Mackenzie
However, in last month’s Wood Mac’s report, we discovered that ExxonMobil has established a strong position in the US CCUS. Wood Mackenzie made a detailed study that figured out, “The company’s US portfolio achieves a weighted average return of 20% in their base case. Some projects yield even higher returns.”
We hope Wood Mackenzie will come up with more updates on global CCUS status and developments very soon.
The post Wood Mackenzie Predicts $196 Billion Investment in CCUS by 2034 appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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