Abstract

Carbon Capture and Storage (CCS) is a critical technology in the U.S. strategy to achieve net-zero emissions and combat climate change. This review explores the market challenges and policy recommendations associated with CCS deployment, emphasizing its role in decarbonizing hard-to-abate sectors such as power generation, manufacturing, and industrial processes. Despite significant advancements in CCS technology, widespread adoption faces barriers, including high capital and operational costs, insufficient market incentives, and public acceptance challenges. Moreover, the lack of comprehensive infrastructure, such as CO₂ transport pipelines and storage facilities, poses a significant hurdle to scaling CCS operations. Policy frameworks like the 45Q tax credit and state-level initiatives have spurred CCS projects, but inconsistencies in regulatory standards and insufficient federal and state collaboration hinder broader adoption. This review highlights the importance of integrating CCS into broader climate policies, leveraging public-private partnerships, and fostering innovation to reduce costs and enhance efficiency. Stakeholder engagement is crucial to addressing community concerns and ensuring equitable implementation, particularly in regions with high CCS potential. The analysis identifies key strategies to overcome these challenges, including enhancing financial incentives, streamlining permitting processes, and investing in infrastructure development. Additionally, it underscores the need for robust monitoring, reporting, and verification (MRV) frameworks to ensure the long-term safety and effectiveness of CO₂ storage sites. Case studies of successful projects in the U.S. and other countries are examined to extract best practices and inform future initiatives. By addressing market and policy barriers, CCS can become a cornerstone of the U.S. decarbonization strategy, contributing to economic growth, job creation, and environmental sustainability. This review provides actionable policy recommendations to accelerate CCS deployment, supporting the U.S. in meeting its climate goals and maintaining global leadership in clean energy innovation.