Designing Policy Mixes for CCS Market Formation: A Cross-Country Analysis in Northwestern Europe

Carbon Capture and Storage (CCS) is critical for achieving net-zero targets, yet market formation varies even among frontrunner countries. This paper examines CCS policy instrument mixes in the United Kingdom, the Netherlands, Denmark, and Norway, focusing on how economic and public financing instruments address key market challenges. Using a qualitative comparative approach, the analysis includes instrument types, targeted project stages and value chain segments. Results show that CCS deployment relies on layered policy instrument mixes: carbon pricing and contract-based economic instruments address revenue uncertainty, grants and subsidies support R&D and demonstration, and regulated investment models or state participation target transport and storage infrastructure. While core challenges such as high capital costs and unpriced carbon are universally addressed, approaches to market coordination and market creation differ. The study highlights functional convergence in addressing shared challenges alongside institutional diversity in instrument design, providing insights for policymakers on enabling CCS market formation.