Asia’s Carbon Capture Plans Threaten Climate Goals

Asia’s ambitious Carbon Capture and Storage (CCS) strategies risk increasing greenhouse gas emissions by nearly 25 billion tonnes by 2050. This could endanger the Paris Agreement’s 1.5°C target and lock the region into expensive fossil fuel use. The warning comes from Climate Analytics ahead of the Japan CCS Summit in October 2025. Nine major Asian economies — China, Japan, South Korea, Indonesia, Thailand, Malaysia, Singapore, and Australia — were analysed. Together, they produce over half of the world’s fossil fuel emissions.

Risks of CCS Deployment in Asia

The report identifies two main CCS risks. First, an underperforming high-CCS scenario where CCS fails to capture enough emissions. Second, an unachieved high-CCS scenario where CCS is promoted but not realised. Both could add 24.9 gigatonnes of CO₂-equivalent emissions by 2050. This is more than the combined fossil fuel emissions of South Korea and Australia. The risks include economic losses and failure to meet climate commitments.

India’s Emerging Role in CCS

India is developing a national CCS mission but currently has no major projects or infrastructure. It remains disconnected from regional CCS networks involving Japan, South Korea, Southeast Asia, and Australia. However, India’s rapid industrial growth, especially in steel and cement, makes it a critical player. These sectors are hard to decarbonise and often considered for CCS. Yet, India’s progress in renewables, electric vehicles, and green hydrogen could reduce CCS reliance. The report estimates India would need $4.3 billion in government support for CCS, raising questions about investment priorities.

CCS as a Fossil Fuel Lifeline

CCS has historically underperformed. Capture rates average around 50%, far below the 95% needed for effective emission cuts. Most projects use captured CO₂ for enhanced oil recovery (EOR), prolonging fossil fuel extraction. CCS in power generation could double electricity costs compared to renewables with storage. Governments in Japan, South Korea, and Australia actively support CCS to sustain fossil fuel industries. Southeast Asian countries aim to become CO₂ storage hubs, often partnering with oil and gas firms. Singapore is developing a CCS hub with major energy companies, reinforcing its fossil fuel transit role.

Cheaper and Cleaner Alternatives

The report urges Asian governments to adopt a low-CCS pathway focused on renewables, electrification, and energy efficiency. These options are already cheaper than fossil fuels with CCS. In 2023, solar and wind power costs were lower than fossil fuel electricity globally. Countries like China, and Vietnam have seen renewables outcompete fossil fuels in price. Globally, a high-CCS pathway could cost $30 trillion more than a low-CCS pathway by 2050.

Questions for UPSC:

1. Critically analyse the role of Carbon Capture and Storage (CCS) in achieving global climate targets with suitable examples.
2. Explain the challenges and opportunities in transitioning from fossil fuels to renewable energy in emerging economies like India and China.
3. What are the economic and environmental implications of investing in fossil fuel-dependent technologies versus renewable energy sources? Discuss with reference to Asia’s energy policies.
4. Comment on the significance of international cooperation in managing transboundary environmental issues such as greenhouse gas emissions and climate change mitigation.

Answer Hints:

1. Critically analyse the role of Carbon Capture and Storage (CCS) in achieving global climate targets with suitable examples.

1. CCS aims to capture CO₂ emissions from fossil fuel use, but actual capture rates average ~50%, below the 95% needed for meaningful impact.
2. Asia’s CCS plans risk adding nearly 25 billion tonnes of CO₂-equivalent by 2050 if CCS underperforms or fails to materialize.
3. Major CCS projects often use captured CO₂ for enhanced oil recovery (EOR), which prolongs fossil fuel extraction, undermining climate goals.
4. CCS in power generation can double electricity costs compared to renewables with storage, reducing economic viability.
5. Countries like Japan, South Korea, and Australia actively support CCS, but this may lock them into fossil fuel dependency and stranded assets.
6. Alternatives like renewables, electrification, and energy efficiency are already cheaper and more scalable, challenging CCS’s role.

2. Explain the challenges and opportunities in transitioning from fossil fuels to renewable energy in emerging economies like India and China.

1. Challenges include industrial growth in hard-to-abate sectors (steel, cement) with high fossil fuel reliance and infrastructure gaps.
2. India and China have large fossil fuel consumption but also vast renewable energy potential and growing clean technology deployment.
3. Economic costs and investment priorities pose challenges—CCS requires billions in support, while renewables are becoming cheaper.
4. India’s domestic fossil fuel use offers flexibility to shift to renewables without external market pressures.
5. Opportunities include rapid adoption of renewables, electric vehicles, and green hydrogen, which can reduce emissions cost-effectively.
6. Policy support and international cooperation can accelerate technology transfer and financing for clean energy transition.

3. What are the economic and environmental implications of investing in fossil fuel-dependent technologies versus renewable energy sources? Discuss with reference to Asia’s energy policies.

1. Fossil fuel-dependent CCS projects risk costly stranded assets and lock-in to uncompetitive fossil fuel pathways.
2. CCS deployment in Asia could add nearly 25 billion tonnes of emissions by 2050, threatening climate targets.
3. Renewables are already cheaper than fossil fuels with CCS, with solar and wind costs declining in Asia.
4. Power sector CCS can double electricity costs, reducing affordability and competitiveness compared to renewables.
5. Asia’s policies in Japan, South Korea, and Australia favor CCS to sustain fossil fuel industries, while Southeast Asia pursues CO₂ storage hubs linked to oil and gas.
6. Investing in renewables and energy efficiency offers lower emissions, economic savings, and energy security benefits.

4. Comment on the significance of international cooperation in managing transboundary environmental issues such as greenhouse gas emissions and climate change mitigation.

1. Greenhouse gas emissions are global pollutants requiring coordinated international action to meet targets like the Paris Agreement.
2. Asia’s major emitters (China, Japan, South Korea, Australia) together contribute over half of global fossil fuel emissions.
3. Cross-border CCS networks exist (Japan–South Korea–Southeast Asia–Australia), but India remains disconnected, denoting cooperation gaps.
4. International cooperation enables technology sharing, financing, and harmonized policies crucial for effective climate mitigation.
5. Joint efforts can prevent carbon leakage and ensure equitable burden-sharing among developed and developing countries.
6. Collaborative frameworks strengthen capacity building, monitoring, and enforcement of climate commitments globally.