Insight
Bankability in CCUS: Are high carbon prices enough to get to FID?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
High carbon prices can make CCUS economics appear attractive on paper, but projects relying on compliance pricing as an incentive have struggled with "bankability" — the ability to generate stable cash flows, manage financial risk and return a profit to investors. This report examines the key factors driving this bankability challenge: Carbon market nascence and complexity Political and pricing risk The absence of concrete cash flows
Table of contents
- Introduction:
- The bankability challenge:
- Market nascence and complexity:
- Political and pricing risk
- The absence of concrete cash flows
- Conclusion:
Tables and charts
This report includes the following images and tables:
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National CCUS capacity and carbon pricing statusGlobal post-FID capacity by primary incentivePost-FID pipeline by carbon pricing level*
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Pre-2019 project landscapePost-FID capacity by developer typeChristina Lake 2024 base caseQuarterly price changes in major ETS markets (nominal)European post-FID projects by credit type*EU vs. US project economicsPost-FID capacity: US 45Q vs. combined global compliance pricing
What's included
This report contains:
