What is CO₂ and why is it a problem and a value chain.

What is CO₂ and why is it a problem and a value chain. Carbon Capture and Storage (CCS) or Carbon Capture, Utilisation and Storage (CCUS) –  is basically a CO₂ value chain: you catch concentrated CO₂ before or after it’s emitted, move it, and lock it away so it doesn’t reach the atmosphere.

In a series of blog posts ActVision Carbon Management & CCS Strategy Studio explains questions related to Carbon Capture and Storage (CCS) also addressed as Carbon Capture, Utilisation and Storage (CCUS).

Act2Vision, Food4The Brain (2025)

What is CO₂?

Carbon dioxide (CO₂) is a colourless, odourless gas made of one carbon atom and two oxygen atoms.

It occurs naturally when:

This illustration shows how the carbon cycle moves carbon dioxide (CO2) through Earth's atmosphere. The red arrows show sources adding CO2 to the atmosphere, and the green arrows show things that remove CO2 from the atmosphere, like plants and oceans. They are also called carbon sinks.NASA/JPL-Caltech
NASA/JPL-Caltech (science.nasa.gov)
  • Living organisms breathe out
  • Plants and animals decompose
  • Volcanoes erupt

It is also released when we burn fossil fuels such as coal, oil and gas in:

  • Power plants
  • Factories
  • Cars, trucks, planes and ships

In small, stable concentrations CO₂ is essential. Plants use it for photosynthesis, and it helps keep the Earth warm enough for life.

Why is CO₂ a problem?

CO₂  traps heat: CO₂ is a greenhouse gas. It lets sunlight in but slows the escape of heat back into space. When the concentration of CO₂ rises too much, the planet warms. This leads to:

  • Hotter average temperatures
  • More extreme weather
  • Melting ice and rising sea levels
  • Stress on agriculture, water and ecosystems
https://royalsociety.org/news-resources/projects/climate-change-evidence-causes/basics-of-climate-change/
The Royal Society (royalsociety.org)

CO₂ stays in the atmosphere for a long time. Once emitted, a part of CO₂ can stay in the atmosphere for hundreds of years. That makes it very different from pollutants that disappear quickly. Today’s emissions add to a “stock” that has been building up for generations. CO₂ is linked to almost every economic activity. Energy, transport, industry, buildings, food: nearly all are tied to CO₂ emissions. That means climate policy and business strategy are now tightly connected. Companies face:

  • Carbon taxes and emissions trading
  • Reporting duties on their CO₂ footprint
  • Pressure from customers, investors and regulators

 

So CO₂ is not just a chemical; it is a strategic risk factor.

From problem to opportunity: the CO₂ value chain

Because CO₂ is everywhere, a new CO₂ value chain is emerging. Instead of seeing CO₂ only as waste, companies treat it as a resource that can be:

  1. Avoided
  2. Captured
  3. Transported
  4. Stored or used
https://www.researchgate.net/figure/Representation-of-the-CO-2-value-chain_fig1_338819648
CO2 Value Chain (Researchgate.net)

1. Avoiding CO₂ at the source; the first and most important “link” in the CO₂ value chain is not emitting in the first place:

  • Energy efficiency in factories and buildings
  • Renewable electricity (solar, wind, hydro)
  • Electrification of transport and heat
  • Process innovation in cement, steel and chemicals

This reduces both emissions and future costs of carbon.

2. Capturing CO₂; for the emissions that remain, companies can use carbon capture technologies:

  • Capturing CO₂ from flue gases at power plants and industrial sites
  • Direct air capture, which removes CO₂ directly from the atmosphere

The captured CO₂ is compressed into a dense fluid so it can be moved and used.

3. Transporting CO₂;  CO₂ can be transported:

  • By pipeline (like natural gas)
  • By ship, truck or train in liquid form

This creates a logistics chain comparable to existing energy and chemical networks.

4.1 Storing CO₂ safely; one route is carbon storage (CCS – Carbon Capture and Storage):

  • Injecting CO₂ into deep geological formations
  • Using depleted gas or oil fields
  • Monitoring storage sites to ensure long-term containment

Here the value lies in avoided climate damage and regulatory compliance.

4.2 Using CO₂ as a resource; another route is carbon utilization (CCU – Carbon Capture and Utilization). CO₂ becomes a feedstock for:

  • Synthetic fuels and e-fuels (combined with green hydrogen)
  • Building materials (mineralised CO₂ in concrete products)
  • Chemicals and polymers
  • Carbonated drinks and greenhouses
https://nccs.no/research/the-co2-value-chain-and-legal-aspects-task-1/
Norwegian Research Center (nccs.no)

Many of these applications are still developing, but they open new markets and revenue streams.

Why the CO₂ value chain matters for business

What is CO₂ and why is it a problem and a value chain. Seeing CO₂ as part of a value chain helps companies move from compliance only to strategic advantage:

  • Cost – lower exposure to carbon taxes and future regulation
  • Risk – more resilient operations in a low-carbon economy
  • Reputation – stronger brand for customers, investors and talent
  • Innovation – new products and services based on captured carbon

Firms that understand their full CO₂ footprint (Scopes 1, 2 and 3) can design targeted interventions along the value chain: avoid where possible, capture where needed, and create value where CO₂ can be used.

Key takeaway

CO₂ is:

  • A natural gas essential for life
  • A major driver of climate change when concentrations rise
  • The core of a fast-growing CO₂ value chain that spans avoidance, capture, transport, storage and utilization

For policymakers and companies, the central challenge is clear:
Emit less, manage what remains, and turn waste CO₂ into value wherever it truly reduces climate impact.

Food4TheBrain

Building process clarity today for the value chain of tomorrow.

Maarten van Oost@act2vision.nl | +31 (0) 686 698 026 | Amsterdam, Netherlands, EEA

 

 

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