Putting it Back: How to Deploy Large-Scale CCSby ENGO NETWORK GUEST AUTHOR on 12/16/13
This is a cross-post written by Ida Sofia Va, web journalist for ZERO. She writes about CCS-related topics for www.zeroco2.no.
ZERO recently released a report about policy instruments for large-scale CCS, which offers a thorough analysis of the policy-making instruments and suggestions on how to best implement CCS in Europe.
CCS has been met with some major setbacks lately, but it is not because of the lack of available technology. We know how to do it, but the problem seems to be on the policy-making side of CCS, says Camilla Svendsen Skriung, Policy Adviser for CCS in ZERO.
Once we create a market mechanism for CCS, the conditions for the industry will improve. We suggest a shared responsibility system, where the producers of fossil fuels have the obligation to buy a certificate from the developers of CCS projects. This way the industry will have an incentive and a possibility to deploy CCS.
Considerable improvements in framework conditions are required to trigger sufficient development and implementation of CCS. In order to meet this major challenge, ZERO has carried out an analysis to contribute to bringing CCS instruments onto the political agenda and closer to implementation.
The overall target of the report is to carry out a study of policy instruments for realisation of large-scale deployment of CCS, to identify the instruments best suited and to propose specific recommendations for the way forward towards sufficient large-scale CCS implementation.
The report is part of ZERO’s work to achieve the necessary deployment of large-scale carbon capture and storage (CCS), as one important mitigation solution to solve the climate challenge.
There are many studies concerning the question of how to ensure the technological up-scaling of CCS and instruments for this learning phase, but we have gone one step further and considered the following question: What are the policy instruments that will take development beyond the first demonstration projects, to the several hundreds of CCS projects?
For large-scale industry applications as CCS, 2020 is nearly here and 2030 is not far away. Long-term predictable frameworks are crucial to boost the speed of needed investments and development. Short-term challenges are important but must not take the focus away from putting long-term policy instruments in place.
In order to ensure large-scale deployment of CCS, ZERO considers a mix of instruments indispensable: at the core, an instrument giving sufficient incentive to make business cases for CCS viable and trigger investments in deployment and innovation. For industry to embark on large-scale investments, a long-term predictable framework is needed. The best policy instrument for up-scaling of CCS deployment to emerge from this analysis is a CCS certificate system combined with an appropriate EPS. The certificate system finances the cost for CCS deployment through a cost-sharing model, while the EPS sets a very clear regulation, stopping investments in high-emission conventional solutions.
ZERO hopes, and thinks, this work will be of interest and contribute to spark the deployment of CCS on a large scale. The next step is of course to develop an effective framework for CCS, and not the least: to implement it and get it to work.
Link to the report: http://www.zero.no/publikasjoner/policy-instruments-for-large-scale-ccs.pdf