Funding Failure: Carbon Capture and Fossil Hydrogen Subsidies Exposed

## Massive Financial Support for Fossil Fuels Misleads on Climate Progress

Key Findings:

• Governments have poured billions into carbon capture and fossil hydrogen, despite their limited effectiveness and potential for emissions increase. • Subsidies for these technologies divert funds from truly sustainable solutions and create a false sense of climate action. ## The False Promise of Carbon Capture and Fossil Hydrogen ***Carbon Capture, Utilization, and Storage (CCUS)*** aims to capture carbon dioxide (CO2) emitted by fossil fuel power plants and industrial processes, either for storage underground or for industrial use. However, CCUS is expensive, energy-intensive, and has a poor track record of long-term storage. ***Fossil Hydrogen*** is produced from fossil fuels, primarily natural gas, but with carbon emissions captured and stored. While fossil hydrogen can be burned without releasing direct emissions, its production still releases significant CO2. It is also more expensive than renewable hydrogen produced from electrolysis of water using renewable energy sources. ## Misleading Climate Progress Governments around the world have subsidized CCUS and fossil hydrogen to the tune of billions of dollars, often portraying these technologies as key to achieving net-zero emissions. However, these subsidies create a false sense of progress: • CCUS and fossil hydrogen do not eliminate emissions at scale. • They perpetuate dependence on fossil fuels, delaying the transition to renewable energy. • They divert funding from truly sustainable solutions, such as renewable energy, energy efficiency, and sustainable agriculture. ## Call for Transparency and Accountability Critics argue that governments must be more transparent about the true benefits and risks of CCUS and fossil hydrogen. Independent assessments are needed to evaluate their effectiveness and potential for emissions reduction. Additionally, governments should prioritize investments in renewable energy and other emission-free technologies. ## Conclusion The heavy subsidization of CCUS and fossil hydrogen is a misguided and counterproductive strategy for addressing climate change. These technologies fail to provide meaningful emissions reductions and hinder the transition to truly sustainable solutions. Governments must redirect their support towards renewable energy and other proven approaches for a sustainable future.