Abu Dhabi: The International Energy Forum (IEF) has released a report titled “Building Markets to Scale Carbon Management Solutions,” highlighting the increasing momentum behind Carbon Management Solutions (CMS) and, in particular, Carbon Capture, Utilization, and Storage (CCUS). This report underscores CCUS’s role in creating integrated value chains and new business models that are engaging financial markets and mobilizing private capital.
According to Emirates News Agency, the report warns that despite recent advancements, the deployment of these technologies still heavily relies on public funding. The IEF emphasizes the need for a shift towards market-driven strategies, supported by robust policy frameworks and multilateral cooperation, to enhance investment and accelerate deployment.
Jassim Alshirawi, Secretary General of the IEF, stated, “The global deployment of CCUS is gaining momentum, but to achieve meaningful impact, we urgently need broader international participation, robust system-level policy frameworks, and cross-sector investment to enable scalable and sustainable carbon management solutions.” He highlighted the importance of establishing well-functioning markets to make carbon management a cornerstone of global energy security, sustainable development, and climate policy.
Christof van Agt Ross, Director of Energy Dialogue at the IEF, mentioned that effective carbon management relies not only on technological breakthroughs and successful projects but also on increased dialogue across governments, industries, and financial communities. This dialogue is necessary to enhance market incentives for broader business engagement and to integrate carbon management solutions more effectively within international energy markets and governance frameworks.
Ali Alsamawi, Senior Energy Analyst at the IEF, noted, “Recent trends show a sharp acceleration in CCUS innovation and entrepreneurship, with more than one-third of active firms established since 2020 and half of all patent filings submitted in just the past five years.” This indicates a critical opportunity to scale up investment and technology deployment.
The IEF report also highlights the rise of CCUS enterprises, advances in CO2 capture technology, and an increase in global patent activity. It points to the necessity of cross-border transport infrastructure and commercialization frameworks for CO2 capture, transport, use, and storage. Market incentives provided by voluntary and regulated carbon markets, along with international mechanisms like Article 6 of the Paris Agreement and the EU’s Carbon Border Adjustment Mechanism (CBAM), play a growing role in this process. The report stresses the importance of complementing project-specific support with enabling frameworks to enhance market incentives for investment, driving decarbonization in hard-to-abate sectors.
As global energy demand continues to rise, the IEF calls for comprehensive and inclusive strategies that reinforce energy security and system resilience while supporting affordable energy access and emission reduction goals.