GLOBAL CARBON REMOVAL PROJECTS

A COMPREHENSIVE ANALYSIS

Executive Summary

This analysis examines the current landscape of global carbon removal projects, focusing on their distribution, capacity, operational status, and sectoral focus across different regions.

The analysis reveals significant variations in project maturity, regional concentration, and technological approaches to carbon removal.

Our findings indicate significant regional concentration in developed markets, with a large pipeline of planned projects but relatively few operational installations.

Project Statistics

Overall Numbers

844

Total Projects

2,225

Mt CO2/yr Capacity

51

Operational Projects

Status Breakdown

Status Number of Projects Capacity (Mt CO2/yr) Percentage of Total
Operational 51 69.65 6.0%
Planned 744 2,090.00 88.2%
Under Construction 44 61.56 5.2%
Suspended/Cancelled 5 3.83 0.6%

Geographic Distribution Analysis

Regional Distribution

Regional Concentration

Developed Markets

  • Strong presence in Europe and North America
  • Leadership in both planned and operational projects
  • Well-established regulatory frameworks

Emerging Markets

  • Limited presence in Africa and Asia
  • Notable gaps in South America
  • Minimal representation in Asia-Pacific region

Market Development Status

Mature Markets

  • High concentration of operational projects with North America leading
  • Robust pipeline of planned installations led by Europe
  • Advanced infrastructure integration

Developing Markets

  • Limited project presence
  • Focus primarily on planning phase
  • Africa appears only in suspended/cancelled projects
  • Infrastructure development challenges

Sector and Project Type Analysis

Sector Distribution

Key Industrial Sectors

  1. Transport & Storage Infrastructure
    • Critical enabler for carbon removal ecosystem
    • Present across all project development stages
    • Essential for project viability
  2. Power and Heat Generation
    • Major focus area for decarbonization
    • Significant representation in project pipeline
    • Integration with existing energy infrastructure
  3. Industrial Applications
      Strong presence in:
    • Chemical processing
    • Steel manufacturing
    • Natural gas/LNG processing

Project Type Distribution

  1. Capture Projects
    • Highest capacity allocation
    • Diverse technological approaches
    • Strong representation across status categories
  2. Full Chain Integration
    • Comprehensive carbon removal solutions
    • Significant presence in operational projects
    • Higher complexity and investment requirements
  3. Storage Facilities
    • Essential infrastructure component
    • Geographic limitations based on geology
    • Critical for long-term project success
Project Type Distribution

Challenges and Growth Opportunities

Implementation Barriers

  1. Geographic Disparity
    • Concentration risk in few markets
    • Limited presence in developing regionst
    • Infrastructure gaps in emerging markets
  2. Project Execution
    • High ratio of planned vs. operational projects
    • Complex regulatory requirements
    • Technical implementation challenges
    • Potential execution risks
  3. Technology Distribution
    • Limited technological diversity
    • Heavy reliance on certain project types
    • Scale-up challenges
    • Integration complexity

Market Development

  1. Regional Expansion
    • Significant growth potential in underserved regions
    • Technology transfer opportunities
    • Local capacity building potential
  2. Cross-Sector Integration
    • Potential for cross-sector synergies
    • Infrastructure sharing opportunities
    • Integration with existing industrial infrastructure
    • Operational efficiency improvements
  3. Capacity Enhancement
    • Substantial planned project pipeline
    • Potential for significant impact on global CO2 reduction
    • Scaling potential in existing markets
    • Technology improvement opportunities

Strategic Recommendations

Policy and Regulatory Framework

  1. Geographic Diversification Initiatives
    • Develop incentive mechanisms for projects in developing regions
    • Create regional development frameworks
    • Establish knowledge sharing platforms
  2. Project Development Support
    • Standardize regulatory requirements
    • Develop standardized project development methodologies
    • Create financial support mechanisms
  3. Technology Innovation Support
    • Increase R&D investment
    • Increase investment in diverse carbon removal technologies
    • Support pilot project development
    • Promote technological diversity

Risk Management

  1. Project Risk Mitigation
    • Develop insurance mechanisms
    • Develop and implement robust project monitoring systems
    • Create standardized risk assessment frameworks
  2. Market Risk Management
    • Diversify geographic exposure
    • Balance technology portfolio
    • Establish robust operating procedures

Conclusions and Future Outlook

The global carbon removal project landscape shows promise, with a significant pipeline of planned projects, especially in developed regions. However, geographic concentration and implementation challenges remain. The high planned-to-operational project ratio signals both potential and risk, emphasizing the need for effective execution and risk management.

Scaling these projects will require coordinated efforts across regions, sectors, and stakeholders, with a focus on geographic diversification, technological innovation, and strong project development support. A strategic emphasis on these areas can accelerate implementation, advancing carbon removal initiatives and their contribution to global climate goals.

Critical Success Factors

Balanced Development
  • Geographic diversification
  • Technology portfolio expansion
  • Stakeholder coordination
Implementation Excellence
  • Project execution capability
  • Risk management frameworks
  • Operational efficiency
Market Evolution
  • Regulatory framework development
  • Infrastructure integration
  • Technology advancement

Ref: IEA (2024), CCUS Projects Database, https://www.iea.org/data-and-statistics/data-product/ccus-projects-database