Unlocking private capital: Scaling investment in the Carbon Capture and Storage (CCS) sector
18 February 2026
Produced under the SMI Financial Services Taskforce CCS Lighthouse Project, led by Barclays and BNP Paribas and delivered by Baringa, this report addresses the central challenge facing the sector: How can the financial services sector work with industry and governments to create scalable business models, develop innovative funding structures, improve information flows, and mitigate risks to unlock billions of private capital in CCS deployment?
CCS is at a turning point. The next leap, from dozens to hundreds of projects, depends on smart capital deployment, risk identification and sharing, and innovation. This is the moment for the financial services sector to move from supporting individual projects to shaping an investable asset class. By acting now, the industry can help CCS evolve into a commercially viable solution, creating opportunities to unlock billions in private investment and delivering both climate impact and strategic returns.
The report explores:
- Mapping the landscape:
- The significant CCS financing opportunity
- The complex set of risks that CCS financing needs to navigate
- Early projects and market evolution
- Public risk sharing has unlocked early CCS investment
- The improving conditions for accessing private capital
- Recommendations
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Against this backdrop, we recommend an integrated recommendations for the financial services sector and its partners to pursue.
- Recommendation 1: Unlock stalled projects by establishing a pre-FID development capital fund
- Recommendation 2: Create bankable revenue streams by aggregating demand and structuring offtake solutions
- Recommendation 3: Accelerate learning cycles and investor confidence via a global CCS financing lessons forum
- Conclusion: Mobilising private investment for scalable solutions
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- Regional case studies
- United Kingdom: A cluster-based approach with significant public backing
- Norway: State-led full value chain (Longship and Northern Lights)
- Netherlands: Porthos hub–public-private hybrid model
- United States: Market-driven projects and the 45Q incentive
- Canada: Layered incentives with market innovation
About the report
Lead report contributors:
SMI FSTF members consulted:
This report has been prepared by Baringa. Input has been gathered from SMI Members as part of this process.
Take a look inside the report:
Our Experts
Chris Thackeray
Expert in Policy, economic and commercial advisory in Carbon Capture and Storage
Contact Chris
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