Thought Leadership – CCS Policy, Legal and Regulatory Review

Investment Rating - The report does not explicitly provide an investment rating for the CCS industry but highlights significant policy support and fiscal incentives that could enhance investment opportunities in the sector. Core Insights - The report emphasizes the critical role of Carbon Capture and Storage (CCS) in achieving global decarbonization goals, with various jurisdictions enhancing their policy frameworks to support CCS deployment [4][29]. - It identifies a growing trend of fiscal incentives and public finance support as key drivers for CCS project announcements and development [45][46]. - The report outlines the necessity for coherent legal and regulatory frameworks to facilitate CCS deployment, particularly in emerging markets [7][24]. Summary by Sections 1.0 Purpose and Focus of the Report - The report provides an overview of global CCS policy, legal, and regulatory developments over the past two decades, focusing on governance regimes and regional trends [4][5]. 2.0 Key Takeaways and Observations - The Americas, particularly the US and Canada, have established mature policy environments for CCS, with significant fiscal incentives leading to increased project announcements [5][45]. - In the Asia Pacific region, countries are intensifying decarbonization efforts, with legal and regulatory support for CCS projects emerging [5][8]. - Europe has committed to ambitious GHG reduction targets, with CCS being integral to these strategies, particularly through the Industrial Carbon Management Strategy [10][11]. 4.0 Regional Analysis 4.1 The Americas - The US has enhanced its CCS tax credits through the Inflation Reduction Act, significantly increasing financial support for CCS projects [32][34]. - Canada has introduced a CCUS Investment Tax Credit, estimated at CA$5.7 billion from 2022/23 to 2027/28, supporting CCS initiatives [17][41]. - Brazil has established a comprehensive legal framework for CCS, positioning itself as a leader in South America [43]. 4.2 Asia Pacific and India - The region is emerging as a key jurisdiction for CCS, with countries forming alliances for cross-border CCS value chains [8][24]. - However, many countries in the region still lack robust regulatory frameworks, which could hinder CCS deployment [7][8]. 4.3 Europe - The EU has committed to reducing GHG emissions by 55% by 2030, with CCS being a critical component of this strategy [10][11]. - The European Commission has identified additional needs for policy and funding to support CCS activities, including a potential regulatory framework for CO₂ transport [13][14]. 4.4 Middle East and Africa - The region is beginning to show renewed interest in CCS, with initiatives like the Middle East Green Initiative aiming to establish a regional CCS hub [15][24]. - However, many countries still lack comprehensive legal frameworks for CCS, which could impede progress [24][44].