Two new reports by consultancy Wood Mackenzie have forecast steep growth in global carbon markets. Carbon capture, utilisation and storage (CCUS) and carbon offsetting are expected to be the two main drivers of a market projected to exceed US $1 trillion by 2050.
Growth in both sectors is expected to be driven by rising demand for emissions-reduction solutions, policy advancements and technological innovation.
As CCUS adoption increases, particularly in hard-to-abate sectors such as international shipping and cement, Wood Mackenzie forecasts that capacity will rise to 28 times today’s levels, reaching 2,061 Mtpa by 2050. This will require comparable growth in storage capacity, driving an estimated US $1.2 trillion of investment in point-source carbon capture.
Carbon offsetting markets are predicted to expand rapidly with volumes increasing sixfold by 2050, with carbon removal predicted to comprise over 40% of offsets in the same period.
The reports caution that for the sectors to realise their full potential, rapid policy development, scaling of technologies and continued government financial support (particularly for CCUS) will be required.
Commenting on the findings of the reports, Mhairidh Evans, VP, Global Head of CCUS Research at Wood Mackenzie said: ‘The carbon offset and CCUS markets are on the cusp of a transformative era. This growth, driven by net zero ambitions, offers immense opportunities for early movers. Success hinges on navigating policy uncertainties and infrastructure challenges. As these markets mature, they will become cornerstone elements of global climate strategies, reshaping the energy transition landscape.’
