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A key method for lowering carbon dioxide (CO2) emissions and combating climate change is carbon capture, utilization, and storage (CCUS). CO2 storage in geological formations is a key component of CCUS, but there are challenges associated with it, including low storage efficiency and possible CO2 leakage. CO2 Enhanced Oil Recovery (EOR) has been the leading method of CCUS, which is able to both improve oil recovery of a reservoir, as well as store CO2 underground for long periods of time. One of its hybrid variants, CO2 Water Alternating Gas (WAG) injection, is currently a prominent alternative in improving CO2 storage efficiency by increasing the residual trapping of CO2. In this study, the effects of hysteresis modeling on CO2 WAG injection for CO2 storage and recovery factor are investigated. A numerical simulator to model CO2 injection and storage in a carbonate reservoir will be used, and the impact of hysteresis on CO2 storage capacity is analyzed. Results show that hysteresis modeling of CO2 WAG injection improves CO2 storage efficiency and reduces the risk of CO2 leakage. The results show that the model which does not include hysteresis underestimates the total trapping of CO2 by 15.02% compared to when hysteresis is included in the model. Furthermore, it is also found that by modeling hysteresis, the amount of CO2 residually trapped in the reservoir is also calculated. Lastly, the study discusses the effect of Land Trapping Coefficient (C) on carbon storage and recovery factor. This study highlights the importance of hysteresis modeling for the optimization of CO2 storage in geological formations, which can contribute to the development of more effective CCUS technologies.