Carbon Capture Turns Commercial, and Canada Is Positioned

Global CCUS set for near-sixfold growth by 2035, with Canada holding 11.5% of planned world storage capacity

28 May 2026

Carbon capture has crossed a threshold. Valued at $5.30 billion in 2024, the global market for carbon capture, utilization, and storage is projected to reach $30.7 billion by 2035, expanding at an annual rate of 19.20 percent as government mandates, carbon pricing mechanisms, and a deepening project pipeline convert what was once a speculative sector into a fully commercial infrastructure class. North America leads all regions with a 38.20 percent market share, cementing the continent as the world's primary deployment ground.

Within that regional standing, Canadian projects account for approximately 11.5 percent of planned global storage capacity, backed by federal tax credits covering up to half of eligible costs and operational facilities already running in Alberta and Saskatchewan. Ottawa committed nearly C$29 million in late March 2026 to 12 clean energy projects, reinforcing that federal support remains both firm and forward-looking. Domestic capture capacity could climb from 4.4 million tonnes of CO₂ per year to 16.3 million tonnes by 2030, though analysts note that net-zero targets by 2050 demand considerably greater scale.

Across the broader sector, momentum is building. More than 300 CCUS facilities are now in active development, with over 40 in advanced construction stages, reflecting an industry well beyond the demonstration phase. For businesses facing rising carbon costs, capture infrastructure offers both a compliance pathway and an expanding commercial opportunity. For communities near large industrial emitters, broad deployment could produce measurable reductions in atmospheric output.

Canada's geological storage capacity remains unmatched among peer nations. With North America's policy architecture strengthening and project pipelines deepening across the continent, analysts said conditions for sustained market leadership appear firmly established. How quickly that leadership translates into captured tonnes, and whether the pace satisfies mid-century climate commitments, will likely shape the next round of federal investment decisions.