The Sustainable Markets Initiative (SMI) has published a new report titled Unlocking Private Capital for Carbon Capture and Storage. The Institute keenly provided an expert lens to inform the report, which examines key investment barriers affecting carbon capture and storage (CCS) and the potential measures that can address them.
The report identifies a structural financing gap, despite CCS showcasing promising opportunities for significant long-term investments. The publication notes that independent capture-side developers often face difficulties securing late-stage development capital and predictable revenue streams ahead of final investment decision (FID). The report further highlights that many early CCS projects have relied heavily on government support, underscoring the need for scalable financing models capable of mobilising private capital at pace.
To address these constraints, the report outlines three priority actions for the finance sector, including:
- Enabling stalled projects to move forward by establishing a dedicated pre-FID development capital fund
- Creating bankable revenue streams by aggregating demand and structuring offtake solutions
- Developing a CCS financing lessons forum enhance knowledge sharing and boost investor confidence
The report highlights a growing CCS project pipeline, with a 54% year-on-year increase in projects, according to data shared by the Global CCS Institute. The report signals promising momentum in CCS deployment as market conditions strengthen and policy efforts align.
Read the Report – Unlocking Private Capital for Carbon Capture and Storage
