Carbon Capture, Utilization, and Storage (CCUS) is a core technology axis of the Net Zero industrial structure , and
the global market is expected to grow by an average of 14-16% annually between 2025 and 2026, expanding to approximately USD 80 billion by 2030. With active cooperation on carbon certification, emissions trading, and technology procurement
among FTA partners , Korea is expanding exports of low-carbon technologies and emission reduction solutions, focusing on the EU, CEPA, and RCEP . Key risks include the spread of CBAM, safety regulations at storage sites, delays in linking with the emissions trading system , and the lack of international standards for CCUS technology .
Risk factors | 2025-2026 Outlook | Influence (1~5) | Implications |
|---|---|---|---|
| CBAM | Indirect regulation of carbon reduction technologies | 5 | EU CBAM offset technology needs to be recognized |
| Storage regulations | Strengthening safety and environmental standards | 4 | Compliance with international standards such as ISO 27914 |
| ETS linkage | Emissions price volatility continues | 4 | Establishment of a mutual recognition system for CCUS reductions |
| Investment cost | Initial CAPEX burden | 3 | Utilizing the 'green finance provisions' within the FTA |
| Technology Certification | International certification award | 3 | CEPA and EU technology mutual recognition is needed. |
FTAs provide direct benefits for the CCUS industry, including reduced tariffs on carbon reduction technology, equipment, plants, and catalysts, and increased market access
. Through their Technology and Environmental Cooperation chapters, the EU, Korea, CEPA, RCEP, and IPEF support streamlining export and import procedures for carbon reduction equipment and systems ,
research cooperation linked to emissions trading , and the establishment of a mutual recognition system for CCUS certification .
Sub-fields | FTA applicability | Major challenges | Management Points |
|---|---|---|---|
| Capture equipment (HS8419/8479) | CEPA·Korea-EU | Environmental and safety certification | Obtained ISO/CE certification |
| Storage and transportation facilities | RCEP·IPEF | Regulatory and site certification | Systematization of storage permits and site verification |
| Carbon utilization catalyst (HS3824) | Korea-EU CEPA | LCA·Product Certification | Obtaining an Environmental Product Declaration (EPD) |
| Blue hydrogen and methane reforming (HS2811) | CEPA·RCEP | CBAM indirect regulation | Low-carbon certification and data submission |
The CCUS industry is a complex industry of environmental equipment, chemical catalysts, and engineering facilities
, and when FTAs are applied, the effect of harmonizing environmental standards and carbon labels is greater than the effect of tariff elimination .
market | Main items | MFN (basic rate) | When FTA is applied | non-tariff barriers | Comments |
|---|---|---|---|---|---|
| EU | Capture equipment/catalyst | 2~5% | 0% | CBAM·ETS integration | Reduction recognition agreement required |
| UAE | Plants and CO₂ storage equipment | 5~10% | Step-by-step removal through CEPA | Environmental and safety regulations | Promotion of Korea-UAE CCUS Joint Project |
| japan | capture equipment | 3~6% | RCEP application | Differences in technology and standards | Review of joint technology agreement |
| USA | CCUS technology and materials | 0~3% | FTA low rate | IRA/tax deduction linkage | Technology transfer and tax incentives |
| ASEAN | Storage and utilization facilities | 5~8% | RCEP cumulative | Customs and environmental regulations | Infrastructure investment and local production are advantageous. |
CCUS is directly linked to **ESG core indicators (carbon reduction, environmental performance labeling, transparency)**, and
the EU CBAM is reviewing a partial exemption system for the application of reduction technologies in the future.
System/Issue | Core requirements | Influence (1~5) | react |
|---|---|---|---|
| CBAM | Application of reduction technology and submission of report | 5 | EU reporting system linkage |
| ETS (Emissions Trading System) | Recognition and offset of reduction | 4 | Expansion of the Mutual Recognition Agreement |
| ESG procurement | Scope 1, 2, and 3 reduction plan obligations | 4 | ESG data disclosure and audit |
| RE100 | Demand for low-carbon energy supply | 3 | PPA·ESS linkage |
| LCA certification | Quantifying Reduction Effects Report | 3 | Establishment of ISO14067·MRV system |
Korea: Advancing carbon capture plant and transportation technologies, securing competitiveness in CCUS EPC led by Hanwha, Doosan, and Samsung Engineering.
EU: Expansion of the combined ETS and CBAM CCUS procurement market (based on the 'Net Zero Industry Act').
UAE: Korea-UAE joint CCUS hub under construction based on CEPA.
ASEAN: Pilot project focused on oil and gas field storage space.
US: Investment surges thanks to IRA tax credit (up to $85/t).
News sentiment (α), global reduction investment index (β), and energy and environmental industry sentiment (λ) combined. A gradual upward trend continued
in the fourth quarter of 2025, driven by increased projects linked to the Korea-UAE CEPA cooperation and the EU ETS .
variable | Δ(%) or exponent | analysis |
|---|---|---|
| ΔExport_now | +2.9 | Increase in exports of CCUS equipment and catalysts |
| ΔImport_now | +1.6 | Expanding imports of technology and measuring equipment |
| ΔPrice_now | +0.5 | Reflection of EPC material and process costs |
| ΔSignal_now | +0.037 | Positive news on carbon reduction and R&D |
| ΔFTAEffect | +0.36 | Cumulative effects of CEPA and RCEP |
| Forecast_3M | +0.59 | A gradual upward trend is expected for three months. |
Formula (summary): Forecast_3M = 0.5·ΔSignal + 0.3·ΔFTAEffect + 0.2·ΔPrice
field | Suggestion | Executor | Expected effect |
|---|---|---|---|
| CBAM integration | Promoting an agreement on a reduction technology offset mechanism | Ministry of Trade, Industry and Energy and Korea Trade-Investment Promotion Agency | EU CBAM offset recognition |
| ETS Mutual Recognition | Offset of Korea-EU ETS reductions | Ministry of Environment and Ministry of Trade, Industry and Energy | Efficiency of emissions trading |
| FTA·CEPA expansion | Establishment of new CCUS technology provisions | Trade Headquarters | Expanding entry into the technology and procurement market |
| Green Finance | CCUS-exclusive financing and guarantee program | Ministry of Strategy and Finance and Korea Development Bank | Easing the CAPEX burden |
| Technology standardization | Compliance with ISO and LCA international standards | KGS·KTL | Strengthening export certification competitiveness |
In the CCUS industry, establishing a technology, procurement, and reduction certification system through FTAs has emerged as a key competitive factor.
Forecast_3M: +0.59 — A gentle upward trend due to the effects of the Korea-UAE CEPA and EU ETS linkage projects.
Recommended strategies: ① Mutual recognition of CEPA and Korea-EU reduction technologies ② Establishment of a reporting system responsive to ETS and CBAM
③ Combination of green finance and R&D ④ Strengthening of LCA and MRV management systems based on international standards.
