ZERO releases report about policy instruments for large-scale CCS

Dec 11 2013

As there are many studies concerning the question of how to ensure the technological up-scaling of CCS and instruments for this learning phase, ZERO has 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?

The report has been carried out by the industry division at ZERO (Zero Emissions Resource Organisation), based in Norway

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 CCSZERO 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 instruments for up-scaling of CCS deployment to emerge from this analysis are 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.

Recommendations include:

  • A mandatory certificate system

o   Obligate suppliers of fossil fuels to do CCS as a share of their supply.

o   Certificates given for production of clean products with CCS.

o   Flexibility for suppliers to do CCS themselves or to cooperate and trade CCS certificates from other projects.

o   Cooperation between countries, both developed and emerging countries.

  • Regulation for EPS for new and existing power plants and industry, in combination with the certificate system.
  • Government taking the post-storage, long-term liability for CO2, de-risking storage cost for all CCS projects. In the short term a special government involvement and funding focus is important to establish sufficient early stage storage capacity. 


Download the report (pdf)

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