Wood Mackenzie forecasts $1.35 trillion for CCUS and carbon credits markets

Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.

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A recent study by Wood Mackenzie, a company specialised in energy research, estimates that the markets for Carbon Capture, Utilisation, and Storage (CCUS) and carbon credits will experience significant growth over the next 25 years. The anticipated acceleration will primarily result from increased demand for these technologies and solutions, driven by corporate decarbonisation commitments and more ambitious climate policies.

Increasing investments in CCUS

The report reveals that the global annual carbon capture capacity could rise significantly, reaching 2,061 million tonnes per year by 2050, a 28-fold increase compared to current levels. According to Hetal Gandhi, head of global forecasts and Asia-Pacific research at Wood Mackenzie, this expansion will drive investments estimated at $1.2 trillion in CCUS, primarily aimed at capturing emissions directly at industrial sources.

Moreover, the carbon credits market could reach $150 billion by mid-century. Peter Albin, senior analyst for carbon markets at Wood Mackenzie, attributes this increase to improved regulatory standards and a continuous rise in prices, which are forecast to become five times higher than current levels.

Industrial sectors and new dynamics

Industrial sectors such as energy, steel, cement, and “blue” hydrogen production are among those already adopting these technologies. The report notably indicates that the Asia-Pacific region is expected to experience substantial growth in CCUS installations at recently built coal plants, despite relatively high operational costs.

According to the study, substantial increases in carbon credit prices, starting from 2035, are expected to improve the profitability of CCUS without direct government support, facilitating broader adoption within major industrial sectors.

Regulatory challenges and technical constraints

However, the report highlights several major challenges to fully realising the potential of these markets. Among these are the critical need to enhance the quality and standards of carbon offset credits, clear identification of industrial use-cases, and the necessity of consistent governmental policies and ongoing public funding, particularly over the next decade.

Mhairidh Evans, Vice President and Global Head of CCUS Research at Wood Mackenzie, considers that “the CCUS and carbon credit markets are currently undergoing a crucial phase requiring rapid resolution of regulatory uncertainties and infrastructure challenges to ensure their future development”.

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geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
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Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
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The Northern Lights project has injected its first volume of CO2 under the North Sea, marking an industrial milestone for carbon transport and storage in Europe.
Verra and S&P Global Commodity Insights join forces to build a next-generation registry aimed at strengthening carbon market integration and enhancing transaction transparency.
Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.
Eni sells nearly half of Eni CCUS Holding to GIP, consolidating a structure dedicated to carbon capture and storage projects across Europe.
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