The oil and gas industry can play a key role in developing business models to scale up infrastructure
business models which secure the required revenue streams, as well as partnerships between emitters, technology providers, and storage operators. The oil and gas industry, with its expertise in managing large-scale infrastructure projects and subsurface storage, can play a key role here. Industrial clusters, in which different energy- intensive industries work collaboratively to invest in the infrastructure for transport and storage of captured carbon dioxide, are proving to be an effective de-risking approach. Such clusters can create the scale needed to justify investment in pipelines for the transport of carbon dioxide to sites for permanent storage. Importance of policy and regulation Realising the full potential of the CCUS technology, especially at these early stages, will require continued policy support and collaboration between governments, industry, and investors. Coming up with the right policy framework and financing and incentive mechanisms will be critical. Governments and policymakers must establish an environment that creates stability and revenue predictability to attract the required investment and support the acceleration of the technology.
Thus, setting clear targets and priorities over the short, medium, and long term, including legally binding policy and regulatory frameworks, will be crucial to minimise policy uncertainty. At the same time, policy efforts should centre around the introduction of de-risking mechanisms and incentives that support green growth and foster green investment. This is especially pertinent for technologies and infrastructure, such as CCUS, which stand at a risky point in their deployment curve. This can be achieved through a wide range of instruments and approaches, including innovation funding, carbon pricing instruments, carbon credits, tax incentives, guarantees, and low-interest loans, among others. Recent policy developments in the US, such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, have started driving investment in clean energy technologies. The Inflation Reduction Act, in particular, is expected to be a game-changer for the CCS industry as it provides significant tax incentives for capturing and storing carbon dioxide. At the same time, as the UK envisions becoming a global technology leader for CCUS, the government announced a funding of £20 billion to support the initial deployment of projects, aiming to unlock
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