The global energy sector is witnessing an accelerated push for carbon capture and storage (CCS) as a key decarbonisation tool, while shifting geopolitical dynamics are reshaping supply and demand patterns, according to industry leaders at the AIEN International Energy Summit.

During the panel “CCS as a Decarbonisation Tool: Pathway to Net Zero in the Oil and Gas Industry,” experts said CCS, though not new, is gaining unprecedented momentum.

“It’s true that CCS isn’t new, but we are seeing more activity these days than 10-20 years ago. Business models now have incentives,” said Yelda Guven, VP Policy, EMEA, ExxonMobil Low Carbon Solutions.

“The legal basis in the EU has been around since 2009 but haven’t seen FIDs since then. Now governments have put incentives in place, and we also have regulatory certainty.”

Ross Brown, Global Policy Lead, CCUS, Shell, agreed: “The policy and regulatory landscape have absolutely enabled CCS.

“There was appetite 10 years ago but now there is a practical recognition that we need it.

“Recognition that in order to decarbonise some industries, CCS is essential.

“Recognition that deindustrialisation should be avoided at all costs and CCS can help prevent this. There is a level of bipartisan support in Europe and North America which is very helpful.”

Panellists also addressed investment challenges.

“It’s not the technology, it’s the business models,” said Brown.

“How do we make this industry work? How do we make it profitable? The problem is that CO2 is a waste product.

“Other waste is funded municipally — CO2 is not. We need to be creating a demand by subsidising CCS.”

Phillip Solomon, Managing Director, BRG, said: “There is also now a sense of urgency.

“The longer you sit and wait, the more you need a solution at scale and CCS is that solution.”

On the geopolitical front, Jimena Blanco, Chief Analyst – Global Risk Insight, Verisk Maplecroft, noted a shift in perception: “We are no longer the risky region – the rest of the world has become riskier!”

With new LNG capacity coming online and evolving energy demands, panellists predicted continued volatility but also new opportunities for regions like Latin America and Asia.

As the energy landscape evolves, the summit made clear that both innovation and international cooperation will be crucial to ensure a secure, sustainable transition.