The total storage capacity is rapidly increasing due to the quantitative and qualitative growth of global CCS projects.

• The United States, currently holding the largest storage capacity, is actively pursuing new projects, with plans for new storage facilities in the North Sea and Asia-Pacific regions.

• Projects for developing high-capacity storage sites capable of injecting over 10 million tons of CO2 annually are announced, indicating not only an increase in the number of projects but also an increase in the average injection volume.

Financial Support from the United States and the United Kingdom to Activate the Global CCS Market.

• (United States) Direct funding and tax deductions for CCS projects are supported through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).

• (United Kingdom) With support from the CCUS Infrastructure Fund (CIF), four CCUS clusters are being established to build storage facilities totaling 37 million tons annually by 2030.

Southeast Asian Countries with High Dependence on Fossil Fuel Industries are Firmly Committed to CCS Projects.

• Recognizing CCS as a critical initiative to achieve growth and decarbonization goals in industries with significant CO2 emissions like LNG and Oil.

• State-owned enterprises in Indonesia and Malaysia are executing CCUS projects with foreign Oil & Gas companies.

Europe Proceeds with CCS Projects Involving Diverse Companies and Countries.

• Projects like Kairos@C led by BASF and Air Liquide encompass the entire value chain of CCS operations, including CO2 capture, liquefaction, export, transportation, and storage.

• The EU supports such projects through the Innovation Fund and plans to establish transboundary storage by utilizing deep saline aquifers in the North Sea basin.

Reasons to Pay Attention to Indonesia and Malaysia as Target Countries for Storing Emitted CO2 from Korea.

• Establishing CO2 storage sites in Southeast Asia, which is relatively nearby, could reduce maritime transportation distances, thus improving the economic viability of overseas CCS projects.

• Following Petronas, Malaysia's state-owned oil and gas company, announcing plans to allocate part of its domestic storage capacity to other countries, exploring cross-border CCS with such nations is necessary.

Government-level Cross-border CCS Agreements and Funding Schemes Need to Be Established.

• In September 2022, Denmark and Belgium became the first countries to sign a cross-border CCS agreement for the transportation and permanent storage of CO2 crossing their borders.

• Thus, it is necessary to review donations for the revision of the London Protocol, mutual recognition of emission trading schemes, maritime transportation technology and regulations, and the distribution of carbon emission rights.

• Considering that government-to-government (G2G) negotiations are needed for treaty agreements, and achieving carbon neutrality solely with domestic storage is challenging for Korea, it is imperative to develop funding mechanisms for overseas CCS projects.