Developing new technologies for carbon sequestration and long-term carbon storage is important. Clay minerals are interesting in this context as they are low-cost, naturally abundant, can adsorb considerable amounts of CO 2 , and are present in storage sites for anthropogenic carbon. Here, to better understand the intercalation mechanisms of CO 2 in dehydrated and hydrated synthetic Na-fluorohectorite clay, we have combined powder X-ray diffraction, inelastic and quasi-elastic neutron scattering, and density functional theory calculations. For dehydrated Nafluorohectorite, we observe no crystalline swelling or spectroscopic changes in response to CO 2 , whereas for the hydrated case, damping of the librational modes related to the intercalated water was clearly observed. These findings suggest the formation of a more disordered water coordination in the interlayer associated with highly confined water molecules. From the simulations, we conclude that intercalated water molecules decrease the layer−layer cohesion energy and create physical space for CO 2 intercalation. Furthermore, we confirm that interlayer confinement reduces the Na + hydration number when compared to that in bulk aqueous water, which may allow for proton transfer and hydroxide formation followed by CO 2 adsorption in the form of carbonates. The experimental results are discussed in the context of previous and present observations on, a similar smectite, Ni-fluorohectorite, for which it is established that CO 2 attaches to the edge of nickel hydroxide islands present in the interlayer.