Defossilizing Industry Scaling-up CCU 2025

5.3 Collaboration and governance Scaling-up CCU is a transdisciplinary exercise that brings together non-traditional technology and market expertise. Such collaborations, in addition to a need to drive awareness of the opportunities and market barriers, have incentivized cross-industry partnerships at project, sector and supply chain level . Therefore, while markets mature, collaborative partnerships can be expected as the default model for CCU project deployment. In addition, there will be an ongoing need for awareness-raising across stakeholder communities. Establishing new networks or leveraging existing ones to communicate shared messages to policy-makers and other market players can enable this. Fostering a broader culture of industrial collaboration beyond the first, pioneering partnerships may require a more formalized approach to engendering trust and transparency. Emerging governance models underpinning wider industrial cluster decarbonization can provide a model for CCU ecosystem collaboration. A common theme across industrial cluster governance is the coalescence of stakeholders around a shared vision that champions transparency and joint coordination, underpinned by private, public or blended finance. These models work to ensure public participation in deployment and focus on aggregation of demand and resources. Given that CCU is another emerging form of industrial symbiosis, there are clear commonalities with the industrial cluster experience. There are already direct parallels with emerging CCU initiatives such as GIF, or the Brightlands Circular Space in the Netherlands, a public-private R&D collaboration focusing on the circular economy.70 For later- stage commercial deployments, governments should build on experiences with industrial clusters to create a public funding-led approach to anchor infrastructure, akin to CCS value chain deployments. In this way, capital outlay can be de-risked while creating trusted spaces to underpin transparency and realize economies of scale through aggregated demand for infrastructure. In summary, the insights gathered through engagement with stakeholder groups has highlighted key roles for advancing CCU towards a self-sustaining market, both independently driven and in collaboration (see Figure 12). Industrial cluster decarbonization can provide a model for CCU ecosystem collaboration. Illustrative summary of stakeholder roles that could support self-sustaining markets for CCU FIGURE 12 Driving change Preparation/participationStrategy and R&D focus Deployment and market formation (mid-term)Self-sustaining market (long-term)Public sector Innovators Innovators & incumbents collaborate on first-of-a-kind projectsInnovators & incumbents collaborate on nth-of-a-kind projectsIncumbents Financiers– Develop policy strategy and standards – Identify regulatory barriers – Provide resources to de-risk R&D – Deploy commercial incentives – Establish product standards – Sustain R&D support – Leverage procurement to support demand– Reduce subsidies – Maintain and refine product standards – Lead R&D – Engage early with incumbents – Participate in cross-industry networks – Develop patient capital vehicles – Deploy traditional investment vehicles – Develop patient capital vehicles – Support R&D – Engage with policy development – Participate in cross-industry networks – Lead R&D – Broaden market fit – Advocate via cross-industry networks – Support book-and-claim initiatives– Maintain drive for scale – Reduce reliance on subsidies – Prioritize cost reductions– Lead R&D – Broaden market fit – Advocate via cross-industry networks– Maintain drive for scale and efficiency – Broaden sectoral application Current stage Defossilizing Industry: Considerations for Scaling-up Carbon Capture and Utilization Pathways 35