Managing Financial Risks in Carbon Capture and Storage Deployment

Scaling carbon capture and storage (CCS) requires more than just technical ability. A significant gap exists in how the industry manages and transfers risks across the value chain, from CO2 capture and transport to underground storage. Because these projects often involve multiple owners across different jurisdictions, a failure in one segment can disrupt the entire network. Insurance innovation is becoming a critical tool for making these projects bankable. New facilities are emerging to cover carbon leakage and technology performance guarantees, which is especially vital in Southeast Asia where government subsidies are lower than in Europe. Without robust risk transfer mechanisms, private capital may hesitate to fund the infrastructure needed to meet 2030 carbon intensity targets.