Defossilizing Industry Scaling-up CCU 2025

Policy-makers and regulators – address perverse incentives and expand support –Work with the scientific community to develop consensus on the range of mitigation opportunities presented by different CCU pathways and CO2 sources. Identify a preferred industry-standard CCU LCA methodology. –Draw on an industry-standard LCA methodology to create regulatory clarity for emerging products, including classifications or standards. –Introduce credible and technology-agnostic incentives. Established mechanisms such as contracts for difference (CfD) can be utilized to provide sufficient stability to enable project financing. –Consider the role of carbon pricing regimes in accounting for the diversity of emissions benefits arising from CCU products that do not result in long-term sequestration, informed by LCA. –Develop incentives for emissions-derived carbon use in chemicals manufacturing that can unlock investment and drive demand. This could include recycled carbon content mandates within products, as well as CCU product blending into conventional product markets. –Work with industry and sector associations to identify and address perverse incentives, to ensure that CCU projects are not subject to additional regulatory hurdles that business-as- usual practices do not face. –Leverage product standards in public procurement to drive demand for CO2-derived products. –Expand CCU R&D funding to accelerate technology maturation. –Ensure that CO2 transport infrastructure is designed with all industrial carbon management applications in mind – including CCS, CCU and CDR. Defossilizing Industry: Considerations for Scaling-up Carbon Capture and Utilization Pathways 20