Carbon Capture Finds Its First Big Backers in Europe

Eni’s deal with Global Infrastructure Partners signals carbon capture’s shift into the investment mainstream across Europe

16 Dec 2025

A partnership between Italy’s Eni and Global Infrastructure Partners is underlining growing investor confidence in carbon capture as part of Europe’s climate strategy.

Eni has agreed to sell a near-50 per cent stake in its carbon capture, utilisation and storage (CCUS) business to Global Infrastructure Partners, giving the infrastructure investor joint control of the platform. The deal is one of the most significant transactions in the sector this year, though financial terms were not disclosed.

The CCUS unit manages a portfolio of projects in the UK, the Netherlands and Italy. These aim to capture carbon dioxide from large industrial sites and store it underground, preventing emissions from entering the atmosphere. For industries such as cement, chemicals and heavy manufacturing, carbon capture is widely seen as one of the few options to reduce emissions while maintaining output.

The transaction brings substantial private capital into a sector that has so far depended heavily on public funding, subsidies and regulatory support. Eni said the partnership would help accelerate project development, reduce financial risk and support expansion across Europe, while allowing the business to operate with greater independence.

Global Infrastructure Partners said it was making a long-term investment based on expectations that carbon management would become a core part of Europe’s energy and industrial system. The firm pointed to rising demand from industrial companies facing tighter climate rules and higher carbon prices.

The deal reflects a broader shift in energy markets. As European climate targets become more demanding, carbon capture is increasingly viewed as necessary infrastructure rather than an experimental technology. For institutional investors, CCUS is also emerging as an alternative to more established renewable assets such as wind and solar.

Significant challenges remain. Carbon capture projects are capital intensive, technically complex and closely tied to regulation, public support and long-term policy certainty. Critics also argue that investment in CCUS risks slowing efforts to reduce fossil fuel use directly.

Even so, the partnership suggests that investor attitudes are changing. By combining Eni’s technical expertise with large-scale infrastructure capital, the deal could provide a model for how carbon capture develops across Europe and attract further private investment into the sector.