Carbon Capture and Storage (CCS)

Key Takeaways

• Carbon capture is a three-step chain—capture, transport, storage—that can cut specific industrial emissions and, in the case of DACCS/BECCS, deliver permanent removals.
• For DACH corporates, CCS is a targeted tool for hard-to-abate Scope 1 process emissions and for neutralising residuals, not a substitute for rapid value-chain decarbonisation.
• The EU and DACH countries are rapidly building a CCS rulebook and infrastructure (ETS, CCS Directive, NZIA, CRCF, German carbon management law, Swiss export deals), which shapes what you can claim and report.
• Carbon capture credits vary widely in integrity; you need a structured due-diligence checklist around permanence, additionality, MRV, leakage, delivery risk, and regulatory alignment.
• A defensible, CSRD-ready climate portfolio uses a capped share of high-quality CCS/DAC removals, backed by rigorous evidence and partners like Senken that pre-vet projects using 600+ data points.

Carbon capture is no longer a distant technology—it's infrastructure your peers are contracting today. Heidelberg Materials just sold out its first year of net-zero cement backed by full-scale CCS at Brevik, and Switzerland is signing bilateral deals to store CO₂ in Norwegian reservoirs. At the same time, a 2025 IIASA study suggests that safe, practical geological storage may only reverse about 0.7°C of warming, reinforcing that carbon capture is a scarce resource to be used strategically, not a licence to delay reductions.

For DACH sustainability leaders, carbon capture sits at the intersection of hard-to-abate Scope 1 emissions, emerging EU compliance frameworks, and rising scrutiny on climate claims. This guide cuts through the jargon to explain what carbon capture and storage (CCS) actually is, how the technology works, where it fits in a science-based net-zero strategy, and how to evaluate carbon capture credits without falling into greenwashing traps. Whether you're assessing on-site CCS for your cement plant or procuring DACCS removals to neutralise residual emissions, you'll find the practical, CSRD-aligned framework you need to make defensible decisions.

What Is Carbon Capture

Carbon capture is the process of capturing carbon dioxide (CO2) either directly from industrial exhaust streams or from ambient air before it reaches the atmosphere. Once captured, the CO2 is compressed, transported, and either permanently stored underground in geological formations or used in long-lived products. This integrated chain—capture, transport, and storage—is what we mean when we talk about carbon capture and storage (CCS).

You'll often encounter related terms that sound similar but have distinct meanings. Carbon sequestration refers specifically to the long-term storage of carbon, whether in geological formations, soils, or biomass. Carbon capture, utilisation and storage (CCUS) adds a utilisation step—using the captured CO2 in products like synthetic fuels or building materials—though not all utilisation pathways lock carbon away permanently. Engineered carbon removals describe technologies like direct air capture with storage (DACCS) or bioenergy with carbon capture and storage (BECCS) that actively remove CO2 already in the atmosphere and store it underground.

It's important to set realistic expectations from the start. Carbon capture is one tool in the net-zero toolbox, not a universal fix. It is particularly relevant for hard-to-abate emissions—those industrial process emissions in cement, lime, steel, chemicals, and refining where deep decarbonisation is technically difficult or prohibitively expensive. CCS will remain a relatively scarce and expensive resource, which is why strategic deployment matters.

For DACH-based sustainability leaders, the regulatory context is evolving fast. Germany is now explicitly enabling offshore CO2 storage and transport networks, Switzerland is concluding bilateral deals to export and store CO2 abroad, and the EU has built a comprehensive CCS rulebook through the CCS Directive, ETS monitoring rules, and the Net-Zero Industry Act. Meanwhile, Austria continues to restrict geological storage. Understanding where and how CCS fits into your jurisdiction and corporate footprint is the first step toward integrating it credibly into your climate strategy.

How Does Carbon Capture and Storage Technology Work

Carbon capture and storage is a three-step chain: capture, transport, and storage. Understanding each step helps you assess technical feasibility, energy requirements, and the quality of any CCS project or credit you might encounter.

1. Capturing Carbon Dioxide at the Source

CO2 can be captured from concentrated industrial flue gases—such as those from cement kilns, steel furnaces, or chemical plants—or directly from ambient air. The most common industrial method uses chemical solvents (often amines) that selectively bind CO2 from the exhaust stream. Once the solvent is saturated, it is heated to release a high-purity CO2 stream. This process, known as post-combustion capture, is mature and can be retrofitted onto existing facilities.

Most industrial CCS systems are designed to capture around 90% of the CO2 from the flue gas. Higher capture rates—up to 98–99%—are technically feasible but require larger equipment and more energy per tonne of CO2 removed, which increases costs. According to the IEA and IPCC, CCS-equipped power plants typically use 13–44% more fuel than unabated plants because of the energy needed to run the capture process. This energy penalty is a key consideration when evaluating the net climate benefit and cost of a CCS project.

2. Transporting CO2 to Storage Sites

Once captured, CO2 is compressed into a dense fluid and transported to a storage site. In Europe, pipelines are the most common transport mode for short to medium distances, with purpose-built CO2 networks starting to emerge. For cross-border or offshore storage, ship-based transport is increasingly used—exemplified by projects like Northern Lights in Norway, which accepts CO2 by ship from industrial emitters across Europe.

The EU's ETS monitoring and reporting regulation treats CO2 transfer points explicitly, requiring mass-balance accounting at each handover to ensure that every tonne is measured and tracked. This regulatory clarity is important for corporate buyers because it underpins the credibility of any carbon capture credit linked to EU-regulated storage.

3. Storing Carbon Dioxide Underground

The final step is injecting CO2 deep underground into suitable geological formations—typically depleted oil and gas reservoirs or deep saline aquifers. These formations have porous rock that can hold large volumes of CO2 and an impermeable cap rock that prevents upward migration. The IPCC concludes that well-selected and managed sites are very likely to retain more than 99% of injected CO2 over 100 years, and likely over 1,000 years.

Storage sites are selected using rigorous geological assessments defined by standards like ISO 27914, and they must be monitored continuously during operation and after closure. If leakage is detected, corrective measures are triggered, and under EU law, the operator or government (post-transfer) is responsible for surrendering ETS allowances equivalent to the leaked CO2. This liability framework ensures storage integrity is not just a technical promise but a legal obligation.

4. Monitoring, Reporting and Verification of Stored CO2

Robust monitoring, reporting and verification (MRV) is required by EU law and international standards. Operators use seismic surveys, pressure monitoring, and geochemical sampling to track the CO2 plume underground. Annual reports are submitted to regulators, and independent verifiers assess compliance. For corporate buyers of CCS-based credits, the quality of MRV is one of the most critical due-diligence points—it's the evidence that the CO2 has actually been captured and remains stored.

Types of Carbon Capture Technologies

Not all carbon capture technologies are the same. Understanding the main families helps you evaluate project maturity, cost, and relevance to your emissions profile.

Post-Combustion Carbon Capture

This is the workhorse technology for retrofitting existing industrial plants. CO2 is scrubbed from flue gas after combustion using chemical solvents. It's commercially mature and widely used in gas processing, hydrogen production from natural gas, and increasingly in cement and steel. Most DACH industrial pilots and first-of-a-kind projects—such as full-scale cement CCS plants shipping CO2 to offshore hubs—rely on post-combustion capture. Capture rates typically sit around 90%, with capital and operating costs varying by plant size and exhaust gas concentration.

Pre-Combustion Carbon Capture

In pre-combustion systems, fuel is partially oxidised to produce a synthesis gas (syngas) containing hydrogen and CO2. The CO2 is separated before combustion, and the hydrogen is used as a clean fuel. This approach is common in integrated gasification combined cycle (IGCC) power plants and in producing "blue" hydrogen from natural gas. While effective, pre-combustion capture requires integrated plant design and is less suited to retrofits.

Oxy-Fuel Combustion Capture

Oxy-fuel combustion burns fuel in pure oxygen instead of air, producing a flue gas that is mostly CO2 and water vapour. The CO2 can then be separated relatively easily. This technology is emerging and is particularly relevant for cement and lime production, where process emissions dominate. The EU Innovation Fund has supported large-scale oxy-fuel CCS demonstrations, and we're starting to see commercial-scale deployments.

Direct Air Capture and Storage

Direct air capture (DAC) removes CO2 directly from ambient air using fans and specialised filters or sorbents. Because atmospheric CO2 is dilute (around 420 parts per million), DAC is significantly more energy-intensive and costly than capturing from concentrated industrial streams. However, when coupled with permanent geological storage (DACCS), it delivers true engineered removals—CO2 that was already in the atmosphere is now locked away.

DAC is central to future permanent removals portfolios. The IPCC and IEA recognise it as essential for neutralising residual emissions that cannot be eliminated at source. Real-world examples include Climeworks' Mammoth plant in Iceland, which captures up to 36,000 tonnes per year using renewable geothermal energy and stores it via mineral carbonation. While costs remain high today—often several hundred euros per tonne—early procurement and long-term offtake agreements can lock in volumes before supply tightens and prices rise further.

Where Is Captured Carbon Stored

Once captured, CO2 must be stored securely for centuries to millennia. The storage medium determines permanence, risk, and ultimately the integrity of any associated carbon credit.

Deep Saline Aquifers

These are porous rock formations saturated with brine, located thousands of metres underground. Saline aquifers have enormous theoretical storage capacity and are found across Europe, North America, and other regions. The CO2 is injected as a dense fluid, where it is trapped by impermeable cap rock and, over time, dissolves into the brine and mineralises. Long-running projects like Sleipner in Norway have injected CO2 into saline aquifers since 1996 with extensive seismic monitoring, demonstrating secure containment over decades.

Depleted Oil and Gas Reservoirs

Depleted hydrocarbon fields offer well-characterised geology and existing infrastructure (wells, pipelines), making them attractive for storage. The same cap rock that trapped oil or gas for millions of years can trap CO2. These sites are often the first to be developed because their geology is already understood, and in some cases, CO2 injection can enhance residual oil recovery—though such enhanced oil recovery (EOR) projects may not qualify as climate-positive under emerging EU frameworks unless strict criteria are met.

Carbon Utilisation in Products and Processes

Under CCUS, captured CO2 can be used to make synthetic fuels, chemicals, building materials, or carbonated beverages. However, many utilisation pathways are temporary—the CO2 is re-released when the fuel is burned or the product degrades. Only long-lived products, such as concrete where CO2 is mineralised into carbonates (as in Neustark's Swiss network of concrete-storage sites), or products with multi-century lifespans, can count toward permanent sequestration under the EU's Carbon Removal Certification Framework (CRCF). For CSRD and SBTi alignment, you must be precise: is your company financing reductions, temporary storage in products, or permanent removals?

What Is the Difference Between CCS and CCUS

The terminology matters because it shapes what you can claim and report.

Why This Terminology Matters for Your Climate Claims

CCS (carbon capture and storage) refers to capturing CO2 and permanently storing it in geological formations. CCUS (carbon capture, utilisation and storage) includes using the captured CO2 in products or processes, with or without eventual storage. Only permanent storage—or products that lock up carbon for centuries—qualifies as a removal under emerging EU and SBTi frameworks.

Many CCUS pathways, such as using CO2 for synthetic fuels or short-lived chemicals, result in the CO2 being re-emitted within months or years. These count as emissions reductions or intensity improvements, not permanent removals. For example, using captured CO2 to produce e-methanol that is burned in a ship's engine reduces the need for fossil methanol, but the CO2 ends up in the atmosphere again.

Implications for Accounting and Carbon Credits

Under the EU's Carbon Removal Certification Framework, only certain activities—DACCS, BECCS, and long-lived carbon storage in products—are eligible as permanent removals. Fossil point-source CCS (capturing CO2 from a cement plant and storing it) reduces reported emissions under the ETS but does not count as a "removal" in the same way. When you purchase carbon capture credits, you need to know: is this a reduction credit (avoiding or reducing emissions at source) or a removal credit (taking CO2 out of the air and storing it permanently)? Only removal credits can be used under SBTi's Net-Zero Standard to neutralise residual emissions, and they must be reported separately from your value-chain abatement efforts.

Why Carbon Capture Matters for Climate Action

Carbon capture is especially relevant for sectors where process emissions or high-temperature heat make full decarbonisation difficult.

Hard-to-Abate Sectors and Process Emissions

Cement, lime, steel, chemicals, refining, and waste-to-energy are industries with significant process emissions—CO2 released not from burning fuel but from the chemical reactions themselves. For instance, making cement clinker releases CO2 when limestone (calcium carbonate) is heated, regardless of the energy source. CCS is one of the few ways to address these emissions at scale. According to IEA and EU modelling, industrial CCS could capture hundreds of millions of tonnes per year by 2040–2050, particularly in these hard-to-abate sectors.

Engineered Removals for Residual Emissions

When CCS is applied to biogenic or atmospheric CO2—such as capturing CO2 from bioenergy plants (BECCS) or directly from the air (DACCS)—it generates net removals. These removals are increasingly required under SBTi and EU policy to neutralise the residual emissions that remain after a company has cut as much as it practically can. Every net-zero pathway modelled by the IPCC includes a role for engineered removals, precisely because some emissions (from agriculture, aviation, certain industrial processes) are extremely hard to eliminate entirely.

CCS as a Scarce, Strategic Resource

A 2025 study led by IIASA suggests that "safe and practical" global geological storage may be far more limited than earlier theoretical estimates—potentially enough to reverse only about 0.7°C of warming if used exclusively for removals. This finding underscores that CCS is not a universal offset for delayed action; it must be prioritised for uses where alternatives do not exist. For DACH sustainability leaders, this means CCS should be part of a portfolio approach: deep reductions first, then a capped share of high-quality CCS or DAC removals for residuals, backed by rigorous evidence.

Challenges and Limitations of Carbon Capture Systems

CCS is not without its trade-offs. Understanding the challenges helps you set realistic expectations and frame CCS transparently to avoid reputational backlash.

Energy Requirements and Efficiency Losses

CCS-equipped plants use significantly more energy—power plants with capture can see fuel consumption rise by 13–44%, according to IPCC figures. This energy penalty raises costs and, if not managed carefully (for example, if the extra energy comes from fossil sources), can reduce the net climate benefit. For industrial applications, integrating waste heat or renewable energy can mitigate this issue, but it remains a core design challenge.

High Capital and Operating Costs

CCS involves large upfront capital investments—retrofitting a cement plant or building a DAC facility costs tens to hundreds of millions of euros—and ongoing operating expenses for energy, solvents, and monitoring. Subsidies, carbon pricing (via the EU ETS), and national funding schemes (such as Germany's CCS support or the EU Innovation Fund) can improve the business case, but CCS remains one of the more expensive abatement options per tonne of CO2.

Infrastructure and Transportation Constraints

CCS requires pipelines, shipping terminals, and injection wells. In Europe, the Net-Zero Industry Act obligates oil and gas producers to contribute to a target of at least 50 million tonnes per year of injection capacity by 2030, and the EU is funding cross-border CO2 networks. However, permitting, public acceptance, and coordination across multiple countries remain bottlenecks. For DACH companies, access to storage often means relying on shared hubs in Norway, Denmark, or the North Sea—requiring robust cross-border contracts and adherence to the London Protocol rules for CO2 export.

Long-Term Storage Responsibility and Liability

Who is responsible if CO2 leaks 50 years after a site closes? Under the EU CCS Directive, liability transfers to the government after a defined post-closure period, provided the operator has met all monitoring and closure requirements. Until then, the operator is liable and must surrender ETS allowances if leakage occurs. This legal framework provides some assurance, but it also means any CCS investment or credit purchase should include a clear understanding of how long-term liability is managed and what monitoring standards are in place.

Public Perception and Policy Risk

Some stakeholders view CCS as prolonging fossil fuel dependence or as a distraction from urgent emissions reductions. Others worry about local environmental impacts or storage safety. To manage this risk, corporate CCS use must be framed transparently: as a complement to—not a substitute for—rapid decarbonisation, and reserved for emissions that are genuinely hard to eliminate. Clear communication about which emissions you are addressing with CCS, how you've evaluated project quality, and how CCS fits within a science-based transition plan is essential to maintain credibility.

How Much Does Carbon Capture Cost

Costs vary widely depending on the technology, the concentration of CO2 in the source stream, energy prices, and the distance to storage.

Cost Ranges by Technology and Application

Industrial point-source CCS (capturing from gas processing, hydrogen production, or fertiliser plants with high-concentration CO2 streams) tends to be the least expensive, often in the range of €40–80 per tonne. Power plant CCS and cement or steel retrofits (with more dilute or complex flue gases) can cost €60–120+ per tonne. Direct air capture is currently the most expensive, with costs ranging from €200–600+ per tonne today, though prices are expected to fall as technology scales.

Key Cost Drivers for CCS Projects

Several factors determine project economics:

• CO2 concentration: Higher concentrations (as in gas processing) mean cheaper capture; dilute streams (like ambient air for DAC) require more energy and equipment.
• Energy prices: CCS is energy-intensive. Access to cheap, low-carbon energy—such as geothermal in Iceland or waste heat from industrial processes—dramatically improves economics.
• Retrofit complexity: Integrating capture into an existing plant is more expensive and disruptive than designing it in from the start.
• Distance to storage: Longer pipelines or ship transport add cost.
• Financing conditions: Public support, such as grants or contracts-for-difference, can halve the effective cost to the project developer.

How Policy and Carbon Pricing Shape Economics

EU ETS allowance prices (currently around €60–80 per tonne) make CCS more attractive for regulated emitters, especially when combined with Innovation Fund grants or national subsidies. In Germany and Switzerland, emerging CCS funding mechanisms are designed to close the gap between capture costs and market revenues. For voluntary-market buyers, the picture is similar: high-quality durable removal credits (DACCS, BECCS, enhanced weathering, biochar) are priced in the range of €100–250+ per tonne today, with projections that prices could more than double by 2030 as SBTi and EU rules drive demand. Locking in volumes early through multi-year offtake agreements can be both financially prudent and strategically necessary to avoid future shortages.

Carbon Capture Projects and Plants in Operation

CCS is no longer theoretical. A growing number of industrial and removal projects are operational today, providing real-world evidence of technical feasibility and MRV.

Industrial CCS Hubs and Cement Projects in Europe

The first full-scale cement CCS plant in Europe began operations in 2024, capturing around 400,000 tonnes per year and shipping CO2 to an offshore storage hub. Similar projects are under construction or in advanced development in the Netherlands (Porthos hub), Norway (Northern Lights expansion), and Denmark. These hubs use shared infrastructure to serve multiple emitters, reducing per-tonne costs and enabling industries without local storage access—like those in Germany or Switzerland—to participate through cross-border shipping contracts.

Gas processing and fertiliser plants have been using CCS for decades, with operational projects in Norway, the United States, and Canada capturing tens of millions of tonnes cumulatively. The learning from these sites has informed the design of newer, more complex retrofits in cement and steel.

Direct Air Capture Plants with Geological Storage

Climeworks' Mammoth plant in Iceland is the world's largest operational DACCS facility, capturing up to 36,000 tonnes of CO2 per year and storing it permanently through mineral carbonation in basaltic rock. Powered entirely by renewable geothermal energy, it demonstrates how DAC can deliver highly durable, low-lifecycle-emissions removals when integrated with the right energy and storage systems.

Other DAC developers are scaling up in the United States and Europe, with capacities expected to grow significantly by 2030. These projects typically sell credits under standards like Puro.earth or emerging CRCF-aligned methodologies, providing corporate buyers with independently verified, high-permanence removal tonnes.

What This Means for DACH-Based Companies

For most DACH corporates, engaging with CCS will mean purchasing credits or entering into offtake agreements rather than building your own storage site. The emerging European CO2 transport and storage network—enabled by the London Protocol, the NZIA, and bilateral storage agreements—opens up access to offshore hubs without requiring domestic geological storage. Switzerland's bilateral deals with Norway and Denmark, and Germany's plans for offshore storage and pipeline networks, are laying the groundwork. Austria, by contrast, still prohibits most geological storage, which limits direct CCS deployment for Austrian-based emitters and shifts the focus to cross-border solutions or removal credits from elsewhere in Europe.

How Carbon Capture Fits Into Corporate Climate Strategy

Integrating CCS credibly requires understanding how it shows up in your footprint, how it aligns with target-setting frameworks, and what the regulatory context permits.

Where CCS Shows Up in Your Scope 1, 2 and 3 Footprint

If your company operates an industrial facility with process emissions—cement, chemicals, or refining—installing CCS can directly reduce Scope 1 reported emissions. Under the EU ETS monitoring and reporting regulation, CO2 captured and transferred to a permitted storage site is deducted from your installation's emissions, lowering your compliance obligation. This is the most straightforward CCS application: on-site mitigation of hard-to-abate Scope 1 emissions.

For Scope 2 and 3, CCS typically does not apply directly unless you are purchasing electricity or materials from CCS-equipped suppliers. Instead, the role of CCS in broader corporate climate strategies is usually through purchasing removal credits based on DACCS or BECCS to neutralise residual emissions that remain after value-chain abatement.

Net-Zero Standards: Reductions First, Removals for Residuals

The Science Based Targets initiative (SBTi) is clear: companies must abate emissions within their value chain first; removals (including DACCS and BECCS) are for neutralising residuals and are reported separately. You cannot use removal credits to claim progress on your emissions reduction targets—only to balance out the emissions that are genuinely hard to eliminate.

This distinction matters for how you communicate. Saying "we are using carbon capture credits to reach net zero" is fine, as long as it is clear that deep reductions have already been achieved and the credits address only the final residual emissions. Conflating reductions with removals, or using removal credits in place of cutting Scope 3 emissions, invites scrutiny under CSRD and Green Claims rules.

EU and DACH Regulatory Context for CCS and Removals

The EU has built a comprehensive CCS framework:

• CCS Directive (2009/31/EC): Defines site selection, permitting, monitoring, closure, and liability for geological storage.
• ETS Monitoring & Reporting Regulation: Specifies how captured and stored CO2 is accounted for, including mass-balance rules at transfer points.
• Net-Zero Industry Act (NZIA): Sets a binding EU-wide objective of at least 50 Mt/yr injection capacity by 2030 and assigns contributions to oil and gas producers.
• Carbon Removal Certification Framework (CRCF): Establishes voluntary EU-wide certification for permanent removals (DACCS, BECCS, carbon farming, long-lived products). Fossil point-source CCS is excluded from CRCF certification as a "removal."

In Germany, the federal government adopted a Carbon Management Strategy in 2024, enabling offshore CO2 storage and transport networks while restricting CCS use to hard-to-abate industrial process emissions (coal power is excluded). Legislative changes to the Carbon Storage Act were progressing through 2025 to operationalise these rules.

Switzerland has integrated CCS into its ETS and funding schemes and is concluding bilateral agreements with Norway and Denmark to export and permanently store Swiss CO2 abroad, given limited domestic storage.

Austria maintains a near-total prohibition on geological CO2 storage under national law, with exceptions only for small-scale research projects. Austrian companies looking to engage CCS must either participate in cross-border solutions or purchase removal credits generated elsewhere.

Understanding where your operations sit within this patchwork is critical. It determines whether you can build CCS infrastructure on-site, whether you need to contract with a cross-border hub, and how you can report and claim any resulting emissions reductions or removals.

How to Evaluate Carbon Capture and Sequestration Credits

Not all CCS credits are created equal. A structured due-diligence checklist helps you separate high-integrity projects from greenwashing risks.

Distinguishing Reductions from Removals in CCS Projects

Fossil point-source CCS credits (for example, from capturing CO2 at a cement plant and storing it geologically) are emissions reductions—they prevent CO2 from entering the atmosphere. Engineered removal credits (DACCS, BECCS) are removals—they take CO2 out of the air and store it. Under SBTi's Net-Zero Standard, only the latter can be counted toward neutralising residual emissions; reductions must happen in your value chain. Make sure the credit you are buying is classified correctly and matches your intended use.

A Practical Due-Diligence Checklist for CCS and DACCS Credits

When evaluating a CCS or DAC project, ask:

• Permanence: How long will the CO2 stay stored? Geological storage in well-selected sites offers millennia-scale permanence; product-based storage varies. Look for evidence of site characterisation under ISO 27914 or equivalent standards, and confirmation that the storage is regulated under the EU CCS Directive or a comparable regime.
• Additionality: Would this capture and storage have happened without the carbon credit revenue? For early-stage DAC or BECCS, the answer is usually yes—credits are essential to project economics. For mature point-source capture where regulation or subsidies already cover costs, additionality is less clear. Check whether the project is already mandated or fully funded by compliance obligations.
• MRV quality: Is there continuous, independent monitoring? Review the project's monitoring plan, verification body, and reporting frequency. Look for digital MRV, third-party audits, and transparent data sharing. The best projects publish annual reports with injection volumes, pressure data, and seismic surveys.
• Leakage risk and mitigation: What are the geological risks, and how are they managed? Check for risk assessments, contingency plans, and financial assurance (bonds, insurance) to cover potential leakage. Under EU law, leakage triggers ETS allowance surrender, which provides an economic backstop.
• Project delivery and counterparty risk: Is the project operational, under construction, or prospective? Pre-delivery credits (forward purchases) carry higher risk. Verify the developer's track record, financing status, permitting progress, and contract terms around delivery guarantees.
• Regulatory context and eligibility: Is the project's storage site permitted under the CCS Directive or an equivalent framework? Is the credit methodology aligned with CRCF, Puro.earth, or another credible standard? Does it meet ICVCM Core Carbon Principles? Regulatory alignment reduces reputational and compliance risk.
• Co-benefits and impacts: Beyond carbon, what are the social and environmental effects? For DAC projects, consider the energy source (renewable vs. fossil) and water use. For industrial CCS, consider local air quality (for example, amine emissions) and community engagement. Positive co-benefits strengthen your narrative; negative impacts require transparent mitigation plans.

How Senken Operationalises Quality with Its Sustainability Integrity Index

Platforms like Senken use 600+ data points across five categories—basic project analysis, carbon impact, beyond-carbon impacts, reporting process (MRV), and compliance & reputation—to pre-screen projects and select only the top ~5% of market credits. This Sustainability Integrity Index (SII™) approach translates the checklist above into a systematic, AI-enabled assessment, delivering CSRD-ready evidence packs that document every project's integrity. For a busy sustainability manager, this means you don't have to become a CCS engineer or legal expert; you can rely on deep due diligence that has already been done, and you get transparent scorecards and audit trails to show your CFO, legal team, and auditors.

Building a Defensible Climate Portfolio with Carbon Capture Solutions

Integrating CCS or DAC credits into your climate strategy requires clear guardrails, balanced portfolio design, rigorous documentation, and trusted partners.

Set Clear Guardrails for Using CCS and Removals

Start by defining when and how much you will use carbon capture in your strategy:

• Prioritise in-house reductions: Commit to cutting emissions within your value chain (energy efficiency, renewable electricity, low-carbon materials, supplier engagement) before relying on credits.
• Limit the share of residual emissions covered with CCS/DAC removals: SBTi and Oxford Principles suggest that removals should address only the emissions that remain after aggressive abatement. Set an internal cap—for example, no more than 5–10% of your total footprint may be covered by removal credits, and only after reduction targets are on track.
• Favour permanent removals for long-term targets: For net-zero and beyond, choose DACCS, BECCS, or other durable methods with >1,000 year permanence over temporary or uncertain storage.
• Avoid overclaiming: Do not label your company "climate neutral" or "carbon neutral" based on credits alone, especially in jurisdictions where regulators have flagged such claims as potentially misleading. Instead, use precise language: "We are offsetting residual emissions with verified removals" or "We have neutralised X tonnes through permanent geological storage."

Design a Balanced, Oxford-Aligned Portfolio

An Oxford-aligned portfolio typically blends a small share of high-quality nature-based solutions (for near-term co-benefits and lower cost) with a growing share of durable engineered removals (DACCS, BECCS, biochar, enhanced weathering) as you approach your net-zero target date. For CCS specifically, focus on projects with:

• Strong permanence and MRV evidence
• Alignment with EU/DACH regulatory frameworks (CCS Directive, CRCF, ETS)
• Geographic relevance (European projects may align better with CSRD disclosure and stakeholder expectations)
• Diversification across technologies and developers to manage delivery risk

Match your portfolio to your decarbonisation trajectory: if your net-zero date is 2040, plan which vintage years and volumes you need, and secure multi-year offtake agreements to lock in supply and price.

Document Everything for CSRD and Audit Readiness

Under CSRD, you must disclose your climate strategy, transition plan, and use of carbon credits with supporting evidence. For every CCS or DAC credit you purchase, collect and store:

• Registry IDs and retirement certificates from recognised registries (Puro.earth, Gold Standard, Verra, etc.)
• Project MRV reports: Annual monitoring data, verification statements, and any third-party audits
• Methodology documentation: Which standard or framework the project follows, and how it ensures permanence, additionality, and leakage management
• Legal and regulatory context: Evidence that the storage site is permitted under applicable law and that liability is clearly assigned
• Third-party ratings: Scores or reports from independent rating agencies (BeZero, Sylvera) or platforms like Senken's SII
• Internal decision memos: Why you selected this project, how it fits your strategy, and what due diligence you conducted

This documentation is your audit trail. When your auditor or a regulator asks "How do you know this credit is real?" you hand them a comprehensive evidence pack, not just a certificate.

Work with Partners to Manage Complexity and Supply Risk

Carbon capture is technically and commercially complex. Sourcing high-quality credits, negotiating offtakes, tracking regulatory changes, and managing delivery risk can overwhelm a small sustainability team. Partnering with a specialist platform like Senken allows you to:

• Access pre-vetted, top-tier projects screened through the SII, saving you months of due diligence
• Receive CSRD-ready documentation with full traceability from purchase to retirement
• Secure multi-year offtake agreements at negotiated prices, protecting you from future supply shortages and price spikes
• Get ongoing support as your strategy evolves and new regulations come into force

This partnership model frees up your internal bandwidth to focus on core decarbonisation work—cutting Scope 1, 2, and 3 emissions—while ensuring your use of carbon capture credits is defensible, transparent, and aligned with best practice.