Report: Public Funds 'Wasted' on Carbon Capture Projects

Carbon capture and storage (CCS) projects have gained significant traction worldwide, with at least 41 such commercial initiatives currently operational. Notably, the majority of these are managed by fossil fuel giants like ExxonMobil and Shell. 
 
Governments across the globe have invested nearly US$30 billion in public funds over the past four decades on carbon capture and hydrogen projects. These investments primarily benefit private fossil fuel companies, as highlighted by a recent report from Oil Change International. 
 
The report further forecasts that national governments will likely shell out an additional US$115 billion to US$240 billion in the upcoming years for similar ventures. The lion's share of this public expenditure comes from countries like the United States, Norway, Canada, and Netherlands; however, it is mostly private entities that reap their benefits. 
 
Around 83% of captured CO2 is utilized for enhanced oil recovery—a process involving injection of industrially compressed carbon underground to extract more oil. "Oil is the most profitable industry globally," says Lorne Stockman, lead author of the report, who criticized supporting this sector with public money as absurd. He argues that it reveals how much control these industries wield over policymaking and politicians, which needs immediate attention. 
 
Despite facing criticism about its efficacy in tackling climate change issues, CCS funding continues unabated due to intense lobbying efforts. A survey found at COP28 identified no less than 475 lobbyists advocating for CCS outnumbering Indigenous representatives present there by a wide margin. 
 
However, despite all its popularity among certain groups, global CCS capacity stands only around 65 million tons, or just 0.15% of projected emissions for 2023. The actual figures could be far lower considering existing projects capture only about one-tenth of their stated capacities. "It appears to be a solution tailored exclusively for benefiting the fossil fuel industry rather than people or the planet," warns Oil Change International's report. 
 
Further scrutiny reveals several shortcomings within these projects, including failure to deliver promised output when extracting oil. Over 80% of such projects have not even taken off the ground, despite receiving substantial public funding. 
 
The report cites instances like the US-backed FutureGen project, which was scrapped less than five years after receiving pledges worth $1 billion from the government. Similarly, Norway's full-scale carbon capture initiative at Mongstad oil refinery also met a similar fate after consuming at least $3 billion Norwegian kroner (US$280 million) in public funds, leading to widespread criticism by Parliament and government auditors for wastage of public money. 
 
Ironically, these technologies that were intended to reduce emissions could potentially have an adverse effect and delay the transition away from fossil fuels, as per Oil Change International's analysis. 
 
Experts argue that it would be more prudent to channel public subsidies towards renewable sources like wind and solar energy instead of pouring money into dubious ventures. As Stanford University civil and environmental engineering professor Mark Jacobson suggests,We should focus on what works and not waste time on things that don't."