Letter on carbon: Five factors to watch in 2025

CCUS and other carbon management technologies are gaining traction around the world, but heightened policy risk and other pressures will make 2025 a challenging year in some regions

A flurry of project breakthroughs in late 2024 highlighted the momentum that CCUS will take into the new year. BP and its partners took FID on the $7b Tangguh Ubadari CCUS and compression project in Indonesia. In Europe, chemicals group INEOS and its partners in the Danish project Greensand took FID on it first commercial phase, while the consortium behind the UK’s Northern Endurance Partnership and Net Zero Teesside Power projects reached financial close. These advances will buoy sentiment in the emerging carbon management sector, but they cannot mask the headwinds faced by a sector that remains highly dependent on state-backed incentives, the value put on carbon by voluntary and compliance