Scaling CCUS: financing the path to net zero

Carbon Capture, Usage and Storage (CCUS) is increasingly recognised as a key component of global net-zero and decarbonization strategies. As governments and corporates implement net-zero pathways, carbon capture technologies are moving from pilot phases toward industrial deployment. The financing of CCUS infrastructure is emerging as a decisive factor in determining the pace and feasibility of large-scale implementation.

Against this backdrop, Santander Corporate & Investment Banking (Santander CIB) recently hosted a client event in London as part of its Sustainable London Net Zero Program, focused on the bankability, risk allocation and financing structures of CCUS projects from a lender perspective.

CCUS projects are structurally complex. They involve evolving technologies, developing regulatory frameworks and multi-party value chains spanning emitters, transport infrastructure and storage operators. Financing models must address construction risk, long development timelines and policy evolution, while ensuring sufficient revenue visibility through carbon pricing mechanisms, contractual frameworks and public support schemes where applicable.