Media Release
30 July 2025
Low Emission Technology Australia (LETA) has today released a report exploring the economic potential of a carbon capture and storage (CCS) industry in eastern Australia. Produced by the Economics team from EY Parthenon, the report Beneath the surface: The economic potential for carbon capture and storage in Australia’s eastern states (the Report), reveals the thriving role CCS could play in transitioning eastern Australia to a net zero emissions economy.
The Report, which examines three potential scenarios for the deployment of CCS on the east coast, finds that not only is CCS essential to the future of Australia’s hard-to-abate sectors operating in eastern Australia, but that a fully networked CCS industry along the east coast could generate up to around $66 billion in economic activity, support up to an additional 15,250 Australian jobs over the coming decades and enable the capture of up to 50 million tonnes of carbon dioxide (CO2) annually.
These results, focussed on the potential for Australia’s eastern states, would be in addition to the economic benefits and emissions reductions already flowing from commercial CCS projects operating in Western Australia and South Australia.
Acknowledging that CCS is an integral component of Australia’s pathway to net zero, the Report finds that without coordinated efforts, there is likely to be a significant risk that Australia may not be on track to develop the carbon sequestration capacity required to reach net zero emissions. The Report finds that this may increase the costs of the net zero transition, and force deeper emissions cuts in other sectors.
The Report was released at an event at Australian Parliament House this evening attended by Senators and Members of Parliament, with remarks from the Hon Madeleine King MP, Minister for Resources and Minister for Northern Australia.
LETA Acting Chief Executive Officer, Damian Dwyer, said this Report reinforces analysis from leading global and Australian organisations in identifying the crucial role of CCS in reducing hard-to-abate emissions and providing energy security.
“This Report echoes advice from the International Energy Agency (IEA), the Intergovernmental Panel on Climate Change, Australia’s Climate Change Authority and CSIRO on the importance of CCS.
“The Report also sets out an exciting economic prospect that could support Australian manufacturing, strengthen sovereign capability and play to Australia’s strengths in the creation of a new CCS industry.
“LETA urges the Australian Government to consider the findings of this Report and to take steps to address the current regulatory barries to CCS deployment, beginning with consideration of a National CCUS Strategy.
“LETA has long advocated for a national strategy which could provide a clear policy and regulatory framework for CCUS development and align federal, state and territory governments behind a common set of objectives.
“By providing a unified roadmap, Australia can accelerate the adoption of CCUS technologies and position itself as a global leader in the emerging low emissions landscape.”
LETA remains committed to collaborating with government, industry, and our international trading partners to further drive the deployment of vital low emissions technologies.