New Analysis: Over 3 Billion Euro of EU Taxpayer Money Wasted on Failing Carbon Capture Projects

Pau, France – Despite over 50 years of failure and billions in wasted investments, governments continue to push carbon capture and storage (CCS) technology at upcoming international forums, ignoring its consistent inability to reduce global emissions while diverting crucial resources from proven renewable energy solutions. The European Commission, in collaboration with the French government, will host the 4th Industrial Carbon Management (ICM) Forum in Pau, France on 10-11 October, 2024. At the same time, newly appointed Japanese Prime Minister Shigeru Ishiba will attend the Asian Zero Emission Community (AZEC) summit. Both events will emphasize “carbon capture” (CCS), an expensive technology that has consistently failed to reduce global carbon emissions.

Key Findings

• Over 3 Billion € Wasted: The EU has already spent 3.301€ of public money on CCS and hydrogen projects.
• Despite Failure, Billions in New Subsidies: EU policies announced since 2020 have made available up to 16 Billion € more for future CCS and hydrogen projects.
• Carbon Capture is a Global Failure: Despite over $83 Billion in investment globally since 1990, a staggering 80% of CCS projects have failed.

Rather than wasting public money on “carbon capture”, governments should fund solar, wind, and other renewable energy sources. Phasing out fossil fuels is the least expensive and most effective strategy towards a livable future and energy independence in Southern countries. The continued focus on carbon capture threatens to lock countries into fossil fuel dependence rather than fostering a true energy transformation.

Asian Zero Emission Community (AZEC)
The Japanese government is a major proponent of carbon capture, and will use the ASEAN Summit to promote its AZEC initiative to Southeast Asian countries. AZEC is a Japan-led platform that primarily backs fossil-based technologies like ammonia co-firing at coal plants, fossil hydrogen, and CCS that will prolong the region’s gas and coal reliance. CCS is promoted by Japan, particularly to Indonesia, Malaysia, Singapore, and Thailand, as a way to extend the life of fossil fuel industries. High-cost, capital-intensive technologies like CCS require external funding, often from wealthy industrialized nations, multinational corporations, or international financial institutions. Japan also stands out for its plans to export domestically generated CO2 for storage in Southeast Asia and the Pacific. This dynamic can deepen the financial dependency of Southeast Asian countries, perpetuating a system of economic inequality and colonialism.

Statements:
Hikmat Soeriatanuwijaya, Senior Asia Officer, Oil Change International, said:
“For Southeast Asia to truly address the climate crisis, the region must move beyond technological fixes like CCS and embrace a comprehensive energy transition rooted in social and environmental justice. Rather than investing in expensive and failed technologies, governments should focus on expanding renewable energy capacity, protecting indigenous rights, and promoting community-owned energy projects.”

Myriam Douo, Senior Campaigner, Oil Change International, said:
“Despite 50 years of failure and over 3 Billion € in subsidies from EU taxpayers, the fossil fuel industry still pushes carbon capture to boost its corporate profits, delay climate action, and distract from real solutions that would end the fossil fuel era. Failing carbon capture projects are used to justify fossil fuel expansion, and are diverting investment from proven alternatives like renewables and energy efficiency. The European Commission should see past Big Oil’s lies and fund real solutions to the climate crisis, now.”

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Experts available for interview.