A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) warns that offshore CO2 storage projects face major financial and operational risks. The analysis highlights concerns about leakage, long-term liability, and the high cost of monitoring and verification. These factors could undermine the credibility of carbon capture and storage as a climate solution if not properly addressed. The report urges policymakers and investors to scrutinize project economics and regulatory frameworks before committing capital. It points to examples where storage performance fell short of projections, raising questions about the viability of large-scale CCS deployment. For carbon market participants, this is a critical read on the risks that could affect offset quality and project returns.
