Carbon dioxide valorization technologies for a low-carbon future: pathways, economics, and policy perspectives

Abstract Global energy consumption continues its upward trajectory, pushing annual carbon dioxide (CO2) emissions beyond 36 Gt and underscoring the need for effective carbon mitigation strategies. CO2 valorization has emerged as a promising paradigm to reduce emissions while generating valuable fuels, chemicals, and materials, thereby facilitating the transition toward a circular carbon economy. This review amalgamates recent advancements across electrochemical, photochemical, biological, and thermochemical pathways, with particular emphasis on catalytic innovations, energy efficiency, reaction selectivity, and product yields. Electrochemical systems now report conversion efficiencies approaching 90%, whilst enhancements in photocatalysts and engineered biocatalytic platforms indicate burgeoning potential despite ongoing challenges in scalability, durability, and operational expenditures. A comparative techno-economic evaluation is presented for CO2-derived fuels, polymers, and specialty chemicals, covering production costs, returns on investment, and payback periods. Empirical case studies from industrial and pilot-scale projects illuminate both successful implementations and enduring deployment obstacles. Environmental performance is assessed through life-cycle analysis (LCA), demonstrating that renewable-energy-integrated CO2 conversion pathways achieve substantially lower carbon footprints than conventional production methodologies. Finally, an international policy examination including carbon pricing mechanisms, tax incentives, and targeted subsidies highlights the indispensable role of regulatory support in expediting industrial adoption. Collectively, this review delineates critical technological, economic, and policy facilitators required to propel CO2 valorization toward large-scale, sustainable implementation.