Securing the Future

CO2 Storage and Verified Carbon Removal

Discover how captured CO2 finds its final destination

CO2 Storage & Certification

When combined with permanent storage, carbon capture from biogenic sources or Direct Air Capture (DAC) can result in negative emissions, a process known as Carbon Capture and Storage (CCS). In one of the approach, purified CO2 is injected deep underground into stable geological formations, such as porous sedimentary rock layers that are naturally sealed by impermeable caprock, preventing upward migration of the gas. This storage process is essentially permanent and mirrors what occurs naturally in natural gas and oil reservoirs. Over time most of it will mineralize as has occurred in most oil- and gas fields.

Permanent Storage in Geological Formations

Typically, the CO2 is injected in its supercritical or liquid state. This state allows for greater storage density, enabling more CO2 to be sequestered within a given volume. Over time, injected CO2 can even mineralize, reacting with surrounding rock to form stable solid carbonates. Today, many depleted oil and gas fields are being repurposed for CCS activities. In 2024, it is reported that a total of 628 CCS facilities in different state of development is recorded with 50 CCS facilities are already operating, with amounting of the potential CO2 capture of 416 Mt per annum [1].

While geological CO2 storage itself does not generate a commercial product, and therefore holds no direct monetary value, the CO2 sequestration involved in carbon removal activities that reduce emissions beyond what is anticipated can be eligible for carbon removal credits. These activities, when measurable, monitored, and verified, contribute to achieving carbon neutrality and can generate credits that have tradeable value in voluntary carbon markets. In retrospective the monetary value can be expressed in less climate calamities and necessary measures.

Certified Carbon Removal and Credit Systems

In the EU, the certification framework for carbon removals, carbon farming, and carbon storage in products is regulated by the Carbon Removals Certification Framework (CRCF), established under Regulation (EU) 2024/3012. This regulation defines the EU-wide criteria for certifying carbon removal activities. Certification involves independent third-party verification, and the certification bodies must be accredited under EU or national accreditation systems. One carbon removal credit represents one metric ton of CO2 that has been avoided, reduced, or permanently removed from the atmosphere. For example, carbon credits can be generated through Direct Air Capture (DAC) with permanent storage (removal) and CO2 sequestration into construction materials via mineralization process. These credits can then be traded or sold to CO2 emitters, allowing them to meet their carbon emissions. It’s important to note that carbon capture and storage activities related to fossil CO2 are typically not eligible to generate carbon removal credits, as they do not remove CO2 from the atmosphere. At this moment voluntary carbon market is approximately valued at US$1.4 billion in 2024, with average price carbon credit of US$ 5 per ton CO2, and projected to increase further to US$7-35 billion by 2030 based on report by MSCI [2].

Emissions Trading and Carbon Allowances

In addition to carbon credits, there is also the concept of carbon allowances, often referred to as carbon permits. These operate under a “cap-and-trade” system, and in the European Union, this is controlled by the EU Emissions Trading System (EU ETS). Under this framework, a cap is set on the total greenhouse gas (GHG) emissions allowed from sectors covered by the scheme. This cap is expressed in the form of emission allowances, with each allowance granting the right to emit one tonne of CO2-equivalent (CO2e).  These allowances are issued by governments and traded in a regulated market, separate from the voluntary carbon credit market. While some companies receive a portion of their allowances for free, this allocation typically decreases over time. Companies that reduce emissions through efficiency energy improvements or green technologies may generate surplus allowances, which can then be sold on the EU ETS market [3]. Conversely, companies exceeding their allowance must purchase additional permits or face a penalty of €100 per excess tonne of CO2e. The market price for allowances fluctuates and as of May 2025, the price of EU carbon allowances [4] reached €71.06 per tonne. The price of carbon allowance is dynamic and will be dependent on the supply-demand as well as the legislation and global treaties directions. In 2023, the carbon allowance trade generate revenue of €44 billions [5].
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