A new study from the Fraser Institute warns that Carbon Capture, Utilization and Storage (CCUS) technology is unlikely to fulfill its promise as a cornerstone of climate policy, citing technological limitations, economic hurdles, and infrastructure barriers.
Study Raises Doubts on CCUS Viability
Released on July 7, 2026, the report titled The Challenges in Scaling Up Carbon Capture, Utilization, and Storage Technologies was authored by Kenneth P. Green, a senior fellow at the independent, non-partisan Canadian public policy think-tank. The study specifically questions the effectiveness of CCUS as proposed in Alberta’s Pathways project, which is tied to federal approval of a new oil pipeline.
“The technology available to us today, and our knowledge and historical use of carbon capture technology calls into question its use as a core climate policy for both the federal and Alberta governments,” Green said.
Historical Use and Performance Gaps
The study points out that historically, most CCUS applications have been designed to enhance oil and gas recovery rather than to store carbon permanently. This misalignment means the technology is not being used for its intended purpose, and results may fall short of expectations.
Where large-scale CCUS projects have been built, they have consistently missed predicted capture targets and experienced significant cost overruns. These failures raise concerns about the feasibility of scaling up the technology to achieve meaningful carbon reductions.
Infrastructure and Regulatory Barriers
Scaling up CCUS to capture a substantial amount of carbon would require massive new infrastructure, including an extensive network of pipelines. The study notes that such projects are likely to face regulatory, legal, and political obstacles that could further delay or derail implementation.
“The idea that carbon capture, utilization and storage will provide large-scale carbon reduction is unlikely to be as successful as its proponents envision, at least with the technology as it exists today,” Green added.
Implications for Climate Policy
The findings challenge the reliance on CCUS as a key climate policy tool by both the federal government and Alberta. The study suggests that policymakers should consider alternative approaches or invest in further technological advancements before betting heavily on CCUS.
The Fraser Institute, with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax, is part of a global network of think-tanks in 87 countries. It does not accept government grants or contracts for research to maintain its independence.
