Carbon Dioxide Industry: Embracing ESG for a Sustainable Future

Carbon dioxide (CO2) emissions have become a pressing concern in today’s world, with the ever-increasing threat of global warming and climate change. Industries across the globe are now looking for ways to address this challenge while achieving sustainable economic growth. One such industry that plays a pivotal role in combating CO2 emissions is the carbon dioxide industry itself. In this article, we will delve into the Environmental, Social, and Governance (ESG) aspects of the carbon dioxide industry, exploring the trends, challenges, and growth opportunities it presents.

The Importance of ESG in the Carbon Dioxide Industry

The carbon dioxide industry is instrumental in mitigating the impact of high CO2 emissions on the environment. To strike a balance between environmental concerns and low-carbon economic development, carbon markets (a trading system in which carbon credits are sold and bought) have been implemented by many industries. Notably, the oil and gas industry extensively utilizes CO2 gas for enhanced oil recovery. This process improves oil flow and reduces the viscosity of the produced oil. Consequently, the demand for carbon dioxide has surged globally, driven by increased investments in cutting-edge technologies, such as enhanced oil recovery and Carbon Capture and Storage (CCS).

Apart from its use in the oil and gas industry, carbon dioxide finds applications in various sectors. For instance, the medical industry utilizes CO2 in temporary respiratory stimulation and other medical applications. As the medical industry continues to grow, the carbon dioxide market is expected to witness substantial growth.

ESG Trends to Look Out For

The investment community is increasingly interested in leveraging carbon dioxide for the development of sustainable goods and services. The traction stems from the objective of (including but not limited to) reducing climate change and promoting a circular economy. Industry leaders are actively working towards improving the CO2 market by incorporating more environmentally friendly applications. Recent advancements in the industry aim to replace the use of toxic solvents and chemicals with CO2-based alternatives. Processes such as supercritical extraction, dry cleaning, and others utilize CO2 as a solvent, offering eco-friendly alternatives.

Moreover, the use of carbon dioxide in gaseous form can promote plant development in greenhouses, making plants more drought-resistant and water-efficient. The scalable application of CO2 offers climate benefits by utilizing low-carbon energy and replacing products with higher life-cycle emissions.

Overcoming ESG Challenges

While ESG presents numerous opportunities for the carbon dioxide industry, it also poses challenges. The market faces low liquidity, limited financing options, inadequate risk-management services, and insufficient data availability. Additionally, the extraction, liquefaction, and transportation of carbon dioxide incur high costs. Solid form transportation is impractical and expensive, consuming more energy than other options. Pipelines emerge as a profitable transportation route for larger volumes of carbon dioxide. However, liquefying CO2 for ship transport and compressing it for pipeline transmission require significant electrical energy. Governments worldwide have developed standards for the safe transportation and storage of carbon dioxide, impacting transportation costs and posing policy and legal risks.

To address prevailing challenges and meet the objectives of sustainability and economic growth, the creation of a successful voluntary carbon market is pivotal.

The Growth Trajectory of the Carbon Dioxide Market

The carbon dioxide market is experiencing significant growth, driven by various factors. In 2021, the market size was estimated to be USD 3.68 billion, and it is projected to expand at a Compound Annual Growth Rate (CAGR) of 7.3% from 2022 to 2030. The increased deployment of enhanced oil recovery technology, driven by depleting oil supplies and rising dependence on crude oil imports, particularly in the Asia Pacific region, contributes to the growth. Additionally, the food, beverage, and pharmaceutical industries are expected to witness a surge in the use of CO2 for various applications. Modified atmospheric packaging (MAP) frequently utilizes carbon dioxide to increase the shelf life of food products. Cryogenic freezing systems offer greater temperature flexibility compared to mechanical refrigeration systems, impacting the use of CO2 in the food and beverage sector.

Key Companies in the Carbon Dioxide Industry

Several key players operate within the carbon dioxide industry, driving innovation and sustainability. These companies play a vital role in shaping the industry’s ESG landscape. Some notable companies include:

  1. Acail Gás
  2. Air Liquide
  3. Air Products
  4. Chemicals, Inc.
  5. Greco Gas Inc.
  6. Linde AG
  7. Messer Group

These companies are involved in various aspects of the carbon dioxide industry, contributing to its growth and sustainability.


The carbon dioxide industry plays a crucial role in addressing the challenges posed by CO2 emissions. By embracing ESG principles, the industry can achieve sustainable growth while mitigating the environmental impact. ESG trends in the industry reflect a growing interest in eco-friendly applications of carbon dioxide, offering opportunities for innovation and market expansion. However, challenges related to liquidity, financing, and transportation costs must be addressed for the industry to reach its full potential. The Carbon Dioxide Industry ESG Thematic Report provides valuable insights into the industry’s ESG landscape, empowering businesses and investors to make informed decisions and contribute to a sustainable future.

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