This paper addresses the urgent challenge of CO2 emissions and the need for sustainable energy sources. It emphasizes CO2 hydrogenation as a promising solution for large‐scale long‐term energy storage, converting CO2 into valuable fuels using green hydrogen generated from renewable sources. The study concentrates on exploring pathways leading to oxygenated compounds, such as alcohols or ethers, for their utilization as sustainable fuels. The investigation encompasses methanol, dimethyl ether, ethanol, and higher alcohols. The paper investigates catalysts for CO2 hydrogenation, ranging from traditional metal‐based to advanced materials, aiming to identify efficient and stable catalysts for synthesizing oxygenated compounds. Catalysts are indispensable in CO2 hydrogenation for the synthesis of oxygenated compounds, contributing to improved reaction kinetics, selectivity, economic viability, reduced environmental impact, and the overall sustainability of the process. The goal is to contribute to a fully renewable, carbon‐neutral system powered by excess solar and wind electricity, where recycled CO2 and green hydrogen are used to produce fuels, to be stored and then used to produce energy, electricity, heat, or mechanical energy, on demand, with the capture of the CO2, in a system which is overall carbon neutral. © 2024 Society of Chemical Industry and John Wiley & Sons, Ltd.