The International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) paint a stark picture: to keep the 1.5-degree Celsius Paris Agreement goal within reach, we need to remove a staggering 1 gigaton of CO2 from the atmosphere annually by 2030. Currently, we only manage a mere 45 Mtpa1. Closing this gap demands drastic acceleration.
CCUS is a technology that has the potential to play a crucial role in our fight against climate change. Collaboration is the key, particularly in aligning the pace of financing and development. CCUS hubs, leveraging shared infrastructure, can boost capacity and decarbonisation endeavors. BCG research shows that the commercialisation of CCUS and the development of hubs can significantly reduce carbon abatement costs (which is the cost of an intervention that will reduce greenhouse gas emissions) making CCUS more economically viable, costing less than $100 per metric ton2.
BCG’s analysis shows that approximately 10% of the global operations for Carbon Capture and Storage facilities are based in the Middle East, thus emphasing the region’s push toward implementing the technology. The CCUS Hub Search3 by the Oil and Gas Climate Initiative (OCGI) and BCG show eighteen high-potential hubs have been identified in the GCC, offering the potential for Blue Hydrogen and Blue Ammonia production. These hubs will be crucial in enabling low-carbon exports and addressing challenging sectors like cement, chemical production, and steel.
CCUS has the potential to be an essential part of achieving net-zero emissions, but it cannot be seen as a single solution. We should prioritise preventing and reducing emissions wherever possible. However, CCUS plays a critical role in industries that have difficulty reducing emissions. A comprehensive approach is needed to successfully implement CCUS. This should include encouraging its adoption through carbon-pricing schemes, collaborative research, and development, streamlined policies, and unlocking financing. By taking a multi-pronged approach, we can overcome the challenges and achieve our goal of net-zero emissions sustainably.
COP28 served as a strong reminder of the need for collective efforts to combat climate change. The Middle East, with its unique strengths and strategic position, has the potential to lead in this fight. By adopting CCUS and creating strong ecosystems for its growth, the region can transform its role in the energy sector, demonstrate its commitment to a sustainable future, and inspire others to follow.
