Financing CCUS (Carbon Capture, Usage and Storage): opportunities and challenges towards the net zero and carbon neutral targets

In the context of the “European Union’s Green Deal”, the EU enacted in the period between 2019 and 2024 a series of policy initiatives aiming at transforming the EU into a modern, resource-efficient and competitive economy, ensuring no net emissions of greenhouse gases by 2050 and economic growth decoupled with resource use. This will make Europe the first climate-neutral continent by 2050.
As the target to be reached by 2050 is net zero or a balanced budget for emissions, the European countries shall no longer add a single metric ton of greenhouse gases to the atmosphere, and thus will have to offset each amount emitted with an equal amount absorbed by biomass or other systems. To get to Net Zero, the Green Deal outlines a joint-action plan along a set of seven strategic building blocks, including Carbon Capture, Usage and Storage (CCUS).
Our Debt Finance department along with the Tax Department summarized the opportunities and challenges related to Carbon Capture, Usage and Storage (CCUS) investments.