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As the third-largest source of carbon emissions in the industrial sector, the high carbon-emission characteristics of the chemical industry, coupled with its heavy reliance on fossil fuels as raw materials, are becoming increasingly apparent. Driven by global competition and the \"dual carbon\" goals, carbon capture, utilization, and storage (CCUS) technology has become a crucial tool for the chemical industry to achieve a green transformation, among which carbon utilization technology is one of the key elements. Converting captured carbon dioxide (CO₂) into high-value chemicals not only helps to reduce carbon emissions directly but also promotes resource recycling, holding dual strategic value in ensuring energy security and enhancing industrial competitiveness. “During the 14th Five-Year Plan period, **carbon utilization technologies have been identified as key areas for support within low-carbon technologies, with efforts to encourage research and development in these areas as well as the construction of demonstration projects. At present, the carbon utilization technologies in China’s chemical industry feature a parallel development of \"traditional upgrades\" and \"new breakthroughs\". The technology maturity for traditional renovation is relatively high, the cost of applying such technology is low, and market promotion prospects are favorable. Significant progress has been made in the research of some emerging carbon utilization technologies, such as electrocatalytic CO₂ conversion, biocatalytic CO₂ conversion, and the production of chemicals through the integration of renewable energy with chemical processes. However, most of these technologies are still at the laboratory or pilot scale, and there are still several barriers to their large-scale commercialization; systematic breakthroughs are urgently needed. Bottlenecks in the promotion and application of emerging carbon utilization technologies 1. Economic imbalance: difficulty in matching costs with benefits. Current carbon utilization technologies face the dual challenge of high costs and low added value. Taking the production of methanol from CO₂ hydrogenation as an example, the overall cost of green alcohol ranges from 3,500 to 4,500 yuan per ton, with the raw material costs for green hydrogen and CO₂ accounting for 70% to 80% or more of this total cost. Although this technology can significantly reduce carbon emissions, high raw material costs undermine its economic viability. Additionally, the lack of a green product certification system leads to significant uncertainties such as price premiums, which restricts its market promotion and application. 2. Insufficient coordination within the industrial chain: mismatch between supply and demand and lack of facilities. There are significant structural contradictions between the upstream and downstream sectors of the industrial chain. The CO₂ emitted by chemical enterprises has a low purity (60%–90%), whereas high-end applications such as electronic chemicals require CO₂ with a purity of 99.99%, which increases the purification costs by 30%. Furthermore, China has not yet established a cross-regional CO₂ transportation network; the cost of land transport for distances over 200 kilometers accounts for more than 50%, which hinders large-scale application. Typical cases show that a coal chemical CCU project had its production load remaining below 40% for a long time due to the lack of enterprises capable of absorbing CO₂ in the surrounding area. 3. Lagging policy mechanisms: insufficient incentives and concentrated risks. The level of policy support does not match market demands. The current carbon trading price (around 70–90 yuan per ton) is only 20% to 60% of the CCUS cost (150–400 yuan per ton), making it difficult to encourage companies to invest in such technologies. In contrast to the U.S. 45Q tax credit ($35 per ton of CO₂ reduced), China lacks long-term and stable fiscal incentives. At the same time, first-of-a-kind technologies face the risk of \"three lacks\": no insurance coverage (no protection in case of equipment failures), no financing options (technical assets are difficult to use as collateral), and no exit strategy (high sunk costs for failed projects). Suggestions for Overcoming Barriers to the Adoption of Emerging Carbon Utilization Technologies At present, these emerging technologies are at a critical stage in transitioning from the laboratory to the market. It is recommended to establish a collaborative ecosystem that integrates technology, policy, and market forces; by leveraging technological innovation to reduce costs, providing targeted policy incentives, and fostering coordination across the industrial chain, it is possible to create a closed loop that links emission reduction with value creation, thereby fully realizing their potential for large-scale application. 1. Technological innovation drives cost reduction across the entire value chain by overcoming key challenges related to catalysts and core reactors, thereby extending catalyst lifespan, improving raw material conversion rates, and enhancing product selectivity ； Strive to develop a low-cost and highly energy-efficient reaction system. For example, by optimizing catalyst performance, adopting a non-cyclic process flow, improving energy utilization, and reducing energy efficiency losses. Enhance the optimization of process integration and promote the integration of green electricity, green hydrogen, and the chemical industry; for example, by using integrated wind, solar, and energy storage systems to coordinate hydrogen production via electrolysis with CO2 conversion, thereby reducing energy efficiency losses caused by intermittent power supply. Create economies of scale to reduce the costs of green hydrogen and CO₂ capture, thereby further lowering raw material costs. Additionally, the unit production cost can also be reduced by enlarging the equipment. 2. Precise implementation of policies and systems: It is recommended to strengthen fiscal and tax incentives, implement immediate VAT refunds for CO₂ derivatives (with a refund rate of 50%, for example), and provide certain purchase subsidies for the first sets of such equipment. Explore the \"carbon sink bank\" model to support enterprises in using carbon assets as collateral to obtain low-interest loans. Force market creation by setting minimum usage ratios for CO2-based materials in government procurement and major projects ； A tiered carbon tax should be imposed on chemical products with high carbon footprints (such as conventional polyethylene) to encourage downstream companies to purchase low-carbon alternatives. Increase the tax policy incentives for the use of first-of-a-kind technical equipment. For manufacturing enterprises that adopt first-of-a-kind technologies or purchase such products, the scope and proportion of tax incentives such as tax credits and accelerated depreciation of fixed assets are expanded. Strengthen the human resource allocation and organizational structure of the alliances for the demonstration application of first-of-a-kind technologies and industrial alliances, enhance their role as links between research institutions, design firms, and manufacturing units, improve information communication channels, and refine the mechanisms for the transformation of scientific and technological achievements, in order to provide professional support for the use of such first-of-a-kind technical equipment. 3. Coordination of industrial chain infrastructure By establishing CO₂ pipeline infrastructure, cross-regional CO₂ transmission pipelines should be built first in CCU cluster areas such as Inner Mongolia and Ningxia to reduce transportation costs. Improve the standardization system, establish standards such as those for carbon footprint calculation, promote mutual recognition with international ISO standards, and overcome the barriers posed by the EU Carbon Border Adjustment Mechanism (CBAM). Currently, the promotion of the carbon utilization market is facing a bottleneck, and systematic solutions are needed to overcome these obstacles. In the upcoming critical phase of the 15th Five-Year Plan, we in the chemical industry must identify the key issues accurately, develop targeted solutions, strive to reduce the costs associated with CCU technology, increase its market penetration, and foster new low-carbon chemical business models, thereby contributing a Chinese approach to global carbon neutrality. Author: Technology Development Research Institute of China Wuhuan Engineering Co., Ltd