Eco-innovation for the green transition of hard-to-abate sectors: the case of Carbon Capture and Storage

This dissertation examines the role of Carbon Capture, Utilization, and Storage (CCUS) technologies in enabling the green transition of hard-to-abate sectors, with a focus on how industrial dynamics, innovation, and policy frameworks interact. It integrates evidence from global project deployment, firm-level patenting, and European financing policies. The first chapter investigates CCUS projects deployment worldwide using the IEA’s projects database (1990–2023). It shows that projects are highly concentrated in oil & gas, agrochemicals, and materials, and that organizational choices—particularly hub models—shape capture capacity and cross-sector collaboration. Despite recent growth, current project scale remains insufficient to meet climate targets, underscoring the need for stronger policy support. The second chapter explores the financial dimension of CCUS innovation, analyzing 2010–2022 firm-level patenting and stock market data. Results indicate that CCUS patents both respond to emissions and policy pressures and influence market valuation. For high emitters, patenting reduces the carbon risk premium, suggesting that capital markets recognize CCUS innovation as a credible decarbonization effort. The third chapter evaluates the impact of EU public financing on CCUS innovation through sectoral development. It finds that incentive policies and subsidies are associated with evidence of crowding-out of private investment in CCUS innovation, especially in concentrated regions, where less firms are active in the sector. Together, the findings highlight how CCUS technologies function as both a decarbonization tool and a driver of industrial transformation. The thesis provides policy-relevant insights on how to balance immediate deployment needs with incentives for long-term innovation, thereby ensuring CCUS contributes effectively to net-zero goals.