Asia-Pacific Bets Big on CCS with $622 Billion Push, Japan to Lead Cross-Border Carbon Storage – EQ
In Short : Asia-Pacific’s carbon capture and storage (CCS) investments are projected to hit $622 billion by 2050, with Japan leading 68% of cross-border CO₂ storage. Japan plans $10 billion in CCS support, while countries like Australia and Malaysia emerge as storage hubs. Improved regulations, shipping infrastructure, and regional cooperation will be key to enabling large-scale decarbonization across the region.
In Detail : Carbon capture and storage (CCS) investments in the Asia-Pacific region are projected to reach $622 billion by 2050, driven by the growing need for decarbonization across industries. As governments and companies strive toward net-zero goals, CCS is emerging as a key pillar in reducing industrial emissions, particularly in hard-to-abate sectors like steel, cement, and power.
Japan is expected to play a dominant role in cross-border CO₂ storage, potentially accounting for 68% of such trade in the region. With limited geological storage capacity of its own, Japan plans to export captured carbon to countries like Australia, Malaysia, and Indonesia. The government has committed around $10 billion to support CCS deployment through 2050.
To facilitate this growth, Japan is updating its regulatory frameworks under the CCS Business Act. These changes aim to ensure clarity around liability, set CO₂ purity standards, and enable international transport of captured emissions. These steps are seen as critical to creating a robust cross-border CCS market.
Other Asia-Pacific nations such as Australia, Indonesia, Malaysia, and Brunei are emerging as key CO₂ storage hubs due to their vast geological potential. For example, Australia has an estimated storage capacity of over 20 billion tonnes of CO₂. However, aligning national regulations with global agreements like the London Protocol remains a challenge for enabling cross-border storage.
Shipping infrastructure will also be essential, as many emitters and storage sites are separated by oceans. Reports suggest the region may need up to 150 liquefied CO₂ carriers by 2050, capable of transporting 100 million tonnes annually. For smaller volumes and longer distances, maritime transport is more cost-effective than pipelines.
If successful, the CCS buildout in Asia-Pacific could deliver wide-reaching benefits. Beyond emission reduction, the sector could support up to 300,000 jobs and contribute over $220 billion to annual GDP by 2035. With strong policy support and regional cooperation, CCS could be central to the region’s path to climate neutrality.
