Carbon Capture, Utilization, and Storage (CCUS) has emerged as the only feasible technological option capable of achieving large-scale emission reductions while sustaining the operation of existing fossil fuel infrastructure. It therefore plays a pivotal role in supporting the realization of China’s “Dual Carbon” goals. However, during the critical period of transition from the industrial demonstration to the commercial application phase, a disconnect exists between technology innovation, project operation, market development, and policy formulation. The disconnect limits the large-scale deployment and industrial development of CCUS technology. Therefore, it is vital to establish a policy system that includes both a normative support system and various policy tools for CCUS development.

This paper reviews the latest achievements in policy mechanism research in the field of CCUS, considering the new situation faced by carbon peaking and carbon neutrality. It discusses the different types of policy tools adopted by major countries and regions, such as the United States, the United Kingdom, Australia, and the European Union, to promote CCUS development. Additionally, it analyzes the synergistic effects between macro-support policies, administrative order policies, financial incentive policies, and market mechanism policies, demonstrating that their coordinated application can create mutually reinforcing portfolios to accelerate industrial-scale CCUS development.

The findings reveal that developed economies have already established mature policy packages that provide favorable conditions for scaling CCUS from demonstration to commercialization. In contrast, China still exhibits significant gaps in standardized accounting methodologies, comprehensive industry standards, financial incentives, and market integration. Furthermore, persistent challenges, such as the high costs of capture and storage, limited funding channels, spatial mismatches between emission sources and storage sites, insufficient interdepartmental coordination, and the absence of a robust legal and regulatory framework continue to hinder progress. These factors reduce investment attractiveness, hinder project implementation, and result in a significant gap between current capture capacity and the levels required to achieve the 2060 carbon neutrality target.

Drawing on international experiences and China’s unique national context, the study proposes a set of policy recommendations. First, accelerate the development of a comprehensive legal framework and permitting system to ensure unified and transparent regulation. Second, establish national and sectoral standards and strengthen monitoring, reporting, and verification systems to facilitate the inclusion of CCUS in domestic carbon markets. Third, introduce targeted financial instruments, such as tax reductions, differentiated subsidies, and dedicated funds, to lower costs and attract diversified capital. Fourth, promote technological breakthroughs in low-energy capture, efficient utilization, and safe storage, while fostering cluster-based infrastructure networks to enhance economies of scale. Finally, strengthen cross-regional coordination and establish risk-sharing mechanisms to safeguard the integrity of the entire CCUS chain.