Impacts, Risks, and Opportunities (IRO) for CSRD Reporting
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In this article, we’ll break down what IROs are, how to identify and assess them, and what CSRD requires in terms of disclosure.
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Our Guide to Carbon Capture, Utilisation and Storage (CCUS)
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For more than three decades, carbon capture, utilisation, and storage (CCUS) has been positioned as a potential game-changer for climate action. The idea is simple: if we can’t eliminate all emissions overnight, why not capture carbon before it reaches the atmosphere, or even remove it after the fact?
And yet, despite the promise, CCUS methods have struggled to gain traction.
In this article, we'll cover:
What CCUS is and how it works
The difference between CCS and CCU
The key carbon capture methods
Why CCUS has struggled to scale
The role CCUS could play in future decarbonisation efforts
What is Carbon Capture, Utilisation and Storage (CCUS)?
CCUS stands for carbon capture, utilisation, and storage: a group of technologies designed to capture carbon dioxide (CO₂) before it reaches the atmosphere, or remove it after it has already been produced.
While investment in renewable energy has grown in recent years, many experts argue that cutting emissions alone won’t be enough. To meet climate targets, we also need ways to deal with the carbon that is already being generated by heavy industry and existing infrastructure. This is where CCUS comes into play.
In the simplest terms, CCUS is a three-step process: carbon dioxide is captured at source, transported (typically by pipeline or ship), and then either permanently stored or reused in other industrial processes.
That final step - storage or reuse - is where the distinction between carbon capture and storage (CCS) and carbon capture and utilisation (CCU) comes into play.
What is the difference between CCS and CCU?
Both CCS and CCU start in the same way: carbon dioxide is captured from industrial processes or energy production. The key difference lies in what happens next.
Carbon capture and storage (CCS) is about permanence. Once captured, carbon dioxide is transported to a suitable site and stored long-term, with the aim of preventing it from ever re-entering the atmosphere.
Carbon capture and utilisation (CCU), by contrast, focuses on reuse. Instead of being stored underground, captured carbon dioxide is used as a resource in other processes – for example, in construction materials, chemicals, or synthetic fuels. In these cases, the carbon isn’t necessarily removed forever, but its reuse can reduce demand for fossil-based inputs.
Put simply, CCS is designed to lock carbon away, while CCU is designed to put it back to work. Both approaches fall under the broader CCUS umbrella, but they play different roles in decarbonisation strategies.
🪨 Carbon capture and storage (CCS)
📍 CO₂ is transported to a dedicated storage site
🌍 Stored deep underground, often in depleted oil and gas reservoirs
🔒 Designed for long-term or permanent carbon removal
🎯 Primarily focused on emissions reduction
🔄 Carbon capture and utilisation (CCU)
🏗️ CO₂ is reused in industrial or commercial applications
🧱 Used in products like building materials, fuels, or chemicals
♻️ Carbon may eventually be re-released, depending on use
🔁 Focuses on reducing reliance on fossil-based inputs
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How does carbon capture technology work?
When we burn fossil fuels (like coal, oil, or gas) - or run heavy industrial processes such as cement, steel, and chemicals - we produce waste gases that contain carbon dioxide (CO₂). Carbon capture technology is designed to separate CO₂ from those gases before it escapes into the atmosphere.
In most cases, capture happens at (or near) the emission source. Think of it like adding a “CO₂ filter” to the exhaust stream of a power plant or factory. The captured CO₂ can then be compressed and prepared for transport (for storage underground, or for use in other industrial applications).
There are three main approaches used in industrial carbon capture today. They all aim to do the same thing - isolate CO₂ - but they do it at different points in the process.
At a glance, here’s how the three main carbon capture approaches compare:
🏭 Post-combustion capture
🔥 CO₂ is captured after fuel is burned
🌫️ Separated from flue gas leaving chimneys or stacks
🏗️ Can often be retrofitted to existing plants
⚡ Energy-intensive due to low CO₂ concentration
⚗️ Pre-combustion capture
🔄 CO₂ is removed before full combustion
🧪 Fuel is processed in a gasifier to create syngas
💧 CO₂ is separated, leaving hydrogen for use as fuel
🏭 Common in chemicals and fertiliser, but harder to retrofit
🔥 Oxyfuel combustion
🫁 Fuel is burned in pure or near-pure oxygen
💨 Exhaust is mainly CO₂ and water vapour
🎯 Enables very high CO₂ capture rates
⚙️ Energy-intensive due to oxygen production
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What are the benefits of CCUS technology?
Despite rapid growth in renewable energy, coal- and gas-fired power plants still account for a large share of global energy production. Heavy industries such as cement, steel, and chemicals also remain difficult to decarbonise using renewables alone. As a result, many experts argue that without carbon capture, utilisation and storage (CCUS), it will be extremely challenging to meet the Paris Agreement objective of limiting global warming to well below 2°C above pre-industrial levels.
CCUS does not replace the need to cut emissions or scale renewables. Instead, it addresses a different part of the challenge: reducing emissions from existing infrastructure and hard-to-reduce sectors, while lower-carbon alternatives continue to develop and scale.
In practice, CCUS offers several key benefits:
🏭
Works with existing infrastructure
CCUS can often be retrofitted to power plants and industrial facilities that are already operating, reducing emissions without shutting sites down or rebuilding them from scratch.
🧱
Supports hard-to-abate sectors
In sectors like cement, steel, iron, and chemicals - where process emissions are unavoidable - CCUS offers one of the few viable pathways to meaningful emissions reductions.
⚙️
Avoids disruptive shutdowns
By reducing emissions at source, CCUS allows industrial sites to continue operating, helping to protect jobs and local economies during the energy transition.
💧
Enables low-carbon hydrogen
When paired with fossil fuels, CCUS can support the production of lower-carbon hydrogen at lower cost than many alternative production methods.
Why has CCUS technology struggled to take off?
For decades, carbon capture, utilisation and storage has been described as a critical climate solution. Yet despite repeated waves of interest, CCUS has scaled far more slowly than many early projections suggested.
The reasons aren’t technical alone. In practice, CCUS sits at the intersection of energy policy, industrial infrastructure, finance, and public trust, and progress depends on all of them moving in step. Several key barriers have consistently held the technology back:
📜
Policy uncertainty
While carbon capture itself is well understood, large-scale CCUS projects are often first-of-their-kind. They combine capture facilities, transport infrastructure, and long-term storage or utilisation – sometimes across multiple jurisdictions. In many countries, the regulatory frameworks needed to support these systems have developed slowly or unevenly, making long-term investment risky.
💸
Unclear revenue models
CCUS projects require significant upfront capital, but reliable income streams are often uncertain. Carbon prices may be too low, too volatile, or too short-term to justify investment. As a result, many projects depend on sustained government support – something investors cannot always rely on.
🧪
Limited track record at scale
Even where individual technologies work, combining capture, transport, and storage into a single large-scale system introduces new technical, financial, and operational risks. Many early projects are commercially fragile, which increases the cost of capital and slows wider deployment.
🤝
Coordination challenges
Unlike a single power plant or wind farm, CCUS systems often rely on multiple actors – emitters, transport operators, storage providers, and regulators. Each comes with different timelines, incentives, and risk tolerances, making coordination complex and slow.
🗣️
Public perception
CCUS is sometimes viewed as a way to prolong fossil fuel use rather than accelerate the transition to cleaner energy. Where governments and companies have failed to clearly explain how CCUS fits alongside renewables and efficiency measures, public support has often been limited.
What is the future of CCUS in the fight against climate change?
For much of its history, carbon capture, utilisation, and storage has promised more than it has delivered. High costs, policy uncertainty, and fragmented infrastructure have repeatedly slowed deployment, leaving CCUS on the margins of global decarbonisation efforts.
More recently, however, the context around CCUS has begun to change. Stronger climate targets, tighter constraints on industrial emissions, and targeted public funding have pushed several large-scale projects beyond the pilot stage.
This shift is now visible in a growing number of large-scale projects that move beyond pilots and into full infrastructure: capturing, transporting, and storing carbon dioxide at scale.
🇺🇸 United States – Bayou Bend CCS (Texas)
🧾 Federal incentives (including 45Q) have helped unlock new CCUS investment.
🏗️ Led by Talos Energy with Chevron, Bayou Bend is designed as shared transport + storage infrastructure.
🌊 Targets offshore geological storage beneath the Gulf of Mexico.
🎯 Designed capacity: up to ~10 million tonnes of CO₂ per year, serving multiple industrial emitters.
🇬🇧 United Kingdom – HyNet / Liverpool Bay CCS
🧩 Built around regional industrial “clusters” rather than isolated projects.
🧱 Designed to capture CO₂ from industrial sites across northwest England and North Wales.
🛢️ CO₂ is intended to be stored in depleted gas reservoirs beneath the Irish Sea.
🧭 Shows how UK CCUS is being tied directly to industrial decarbonisation strategies.
🇪🇺 Europe – Northern Lights (Norway)
🚢 Designed as an open-access CO₂ transport + storage network (including shipping by sea).
🌊 Aims to store captured CO₂ permanently beneath the North Sea.
🧠 Tackles a long-standing bottleneck: the lack of shared infrastructure.
🧩 Often described as a blueprint for cross-border carbon management in Europe.
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CCUS FAQ:
Is CCUS the same as carbon removal?
No. CCUS primarily focuses on capturing carbon dioxide from industrial processes or power generation before it enters the atmosphere. Carbon removal technologies, such as direct air capture (DAC), aim to remove CO₂ that is already in the air. While both can contribute to climate mitigation, they serve different purposes and are often governed by different policy frameworks.
Does CCUS permanently remove carbon dioxide?
Not always. In carbon capture and storage (CCS), carbon dioxide is intended to be stored permanently, usually in deep geological formations. In carbon capture and utilisation (CCU), the carbon dioxide is reused in products or processes, meaning it may eventually be released back into the atmosphere. The climate benefit depends on how the CO₂ is used and for how long it remains stored.
Is CCUS safe?
When properly designed and regulated, CCUS is considered technically safe. Geological storage sites are carefully selected based on rock integrity, depth, and long-term containment potential, and projects are monitored over time. That said, safety depends on robust regulation, transparent monitoring, and long-term liability frameworks, all of which vary significantly by country.
Who pays for CCUS projects?
Most large-scale CCUS projects rely on a mix of private investment and public support. Government funding, tax credits, carbon pricing mechanisms, and contracts for difference are often needed to make projects economically viable, particularly in their early stages. Fully market-driven CCUS remains rare.
Is CCUS proven technology?
The individual components of CCUS are well established. Carbon dioxide has been captured and injected underground for decades, particularly in the oil and gas sector. However, fully integrated CCUS systems operating at a large scale are still relatively rare.
What is the current state of CCUS in the UK?
In the UK, CCUS development is being supported by government funding and long-term policy frameworks. The focus is on industrial regions where shared CO₂ transport and storage infrastructure can serve multiple emitters. Projects such as HyNet North West and the East Coast Cluster are intended to decarbonise heavy industry while protecting jobs and regional economies. Progress has been slow, but recent investment decisions and regulatory developments suggest that CCUS is now moving beyond planning and into early deployment.
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What about Greenly?
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📥 Import qualitative & quantitative data — platform processes & flags errors
🤖 AI-powered data processing & auto-filling of answers
🔗 Integrated connectivity: map & connect data points across indicators, eliminate redundancy
📂 Centralised platform for all ESG data & supporting docs
⏱️ Track collaborator progress, set reminders & deadlines for compliance
🛡️ Audit-ready traceability: instantly track every change
📊 ESG dashboards to track all key KPIs
🏢 Multi-entity task management & data ingestion at all levels
🧠 AI-powered pre-filling from documentation saves weeks of manual work
🧮 Automatic calculations handle dependencies & speed up consolidation
📈 Multi-entity data collection simplified by mirroring company structure
Strategic ESG Impact & Risk Mitigation
Greenly empowers companies to move beyond reporting to develop strategy, identify risks, and unlock opportunities.
📋 Automated Double Materiality Assessment (DMA) built with CSRD experts
🤖 AI-powered climate risk forecasting integrated into DMA with site-level detail
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📍 Location-specific financial risk breakdowns with IPCC-backed data
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📊 Advanced Materiality Module: benchmarks & specialised add-ons (e.g., CSA)
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Flexible reporting with interoperability across 15+ frameworks.
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📚 Extensive training & resources available on the platform
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