What CCUS technologies actually involve

Carbon Capture, Utilisation and Storage (CCUS) encompasses technologies that capture CO2 from industrial processes or the atmosphere before it is emitted, and either store it permanently underground or convert it into products. Point-source capture is applied directly to industrial sources such as power stations, cement plants and steel mills. Direct Air Capture (DAC) extracts CO2 from ambient air. Utilisation converts captured CO2 into fuels, chemicals or building materials. Storage involves geological sequestration in saline aquifers or depleted hydrocarbon reservoirs. For corporate teams, engagement with CCUS is typically around assessing its role in a decarbonisation roadmap, evaluating purchase of carbon removal credits, or managing supplier relationships in hard-to-abate sectors.

Why it's harder in practice than it looks

CCUS is not a substitute for emissions reduction

Science-based target frameworks require companies to prioritise abatement over removal. CCUS credits, particularly from DAC, are expensive and limited in scale. Using CCUS to offset avoidable emissions rather than addressing their source is increasingly challenged by investors and NGOs.

Carbon removal credit quality varies enormously

The voluntary carbon market includes CCUS-based credits ranging from high-durability geological storage to lower-durability utilisation pathways. Without understanding the permanence, additionality and verification methodology of specific credits, companies risk purchasing units that do not represent genuine long-term removals.

Commercial viability remains uncertain for most applications

CCUS at scale is capital-intensive and dependent on government incentives in most markets. Corporate assumptions about cost trajectories for CCUS-based decarbonisation in supply chains need to be tested against realistic deployment scenarios rather than optimistic technology roadmaps.

Regulatory landscape for geological storage is still developing

The legal and regulatory frameworks for permanent underground CO2 storage vary by jurisdiction and are still being established in several key markets. Companies developing CCUS projects face permitting complexity and long-lead timescales.

What good looks like

A company engaging credibly with CCUS has assessed which parts of its value chain are genuinely hard-to-abate and for which CCUS may play a legitimate residual role, evaluated available carbon removal credit options against quality criteria covering permanence, additionality and verification, and integrated CCUS into a broader decarbonisation roadmap as a complement to, not a substitute for, abatement action. The strategy is defensible to external stakeholders and consistent with SBTi net zero guidance on the use of beyond-value-chain mitigation.

When to bring in external support

Evaluating CCUS options requires technical knowledge that spans climate science, carbon markets, engineering economics and regulatory frameworks. External specialists can assess the credibility of CCUS claims from suppliers, evaluate carbon removal credit quality, and help teams position CCUS correctly within their decarbonisation narrative. Leafr's network includes low-carbon technology and carbon markets specialists who provide independent analysis for corporate strategy teams navigating this complex and rapidly evolving space.

Frequently asked questions

What is the difference between carbon capture and carbon removal?

Carbon capture refers to capturing CO2 at the point of emission from industrial processes, preventing it from entering the atmosphere. Carbon removal refers to extracting CO2 that is already in the atmosphere, either through natural means such as afforestation or through technological approaches such as Direct Air Capture. Carbon removal generates a genuine negative emission; carbon capture prevents a positive emission. Both are distinct from carbon offsetting, though credits from these activities are sometimes sold in voluntary carbon markets.

Can companies use CCUS credits toward their net zero targets?

Under SBTi guidance, carbon removal (including from high-quality CCUS) can count as beyond-value-chain mitigation but cannot substitute for in-value-chain emissions reductions. Companies must still achieve the emissions reductions required by their SBTi-validated targets; CCUS credits can only address residual emissions after maximum feasible abatement. This is a common point of confusion in corporate net zero claims.

What makes a high-quality carbon removal credit from CCUS?

High-quality CCUS credits involve geological storage (which provides near-permanent sequestration), are verified by a recognised standard, demonstrate additionality (the project would not have happened without carbon finance), and have monitoring, reporting and verification processes in place for the storage site. DAC with geological storage is currently considered the highest-quality removal pathway but remains expensive.

What sectors are most likely to need CCUS in their decarbonisation plans?

Hard-to-abate sectors, cement, steel, chemicals, long-haul aviation, and some industrial processes, are most likely to require CCUS as part of their pathway to net zero because electrification and fuel switching cannot eliminate all emissions from these processes. Companies in these sectors should be actively monitoring CCUS development pathways for their specific industrial processes.

Is CCUS the same as carbon offsetting?

No. Carbon offsetting in its traditional sense involves purchasing credits from projects that avoid or remove emissions elsewhere, often nature-based solutions like forest conservation. CCUS is a specific set of technologies that capture, utilise or store CO2 physically. Some CCUS projects generate carbon credits that can be purchased, but not all CCUS activity is credit-generating, and not all carbon credits involve CCUS technology.