Abby L. Harvey
GHG Monitor
6/19/2015
The European Union, through a number of policy, investment and coordination efforts, must work to accelerate the adoption of carbon capture and storage for the technology to contribute to larger climate goals, according to a report released this week by the University of Leeds, the London School of Economics and Political Science and the Grantham Institute at Imperial College London. The report finds that while EU member states have invested in CCS, the measures that have been taken are insufficient. To correct this problem, the group recommends efforts be made in three key areas: policy and investment, coordination among member states and legislation related to CO2 transport and storage. “Above all, the European Union and its Member States must show much greater urgency and determination to develop and deploy CCS, otherwise it will not be able to contribute towards the demanding targets for reducing emissions of greenhouse gases, perhaps making them significantly more difficult and/or expensive to achieve,” the report says.
The report suggests a number of actions which would strengthen EU policies related to CCS in an effort to incentivize investment in the technology. “The European Commission and Member States should develop a portfolio of measures tailored to different phases of CCS development in order to overcome critical barriers to deployment and facilitate investment,” the report says. Within the next five year, the group recommends further developing: direct funding programs for research and development, a new funding mechanism to finance early stage development projects, carbon pricing, financial incentives for CCS electricity generation, increased financial support from public financial institutions, mandatory targets in the form of emissions standards and tailored incentives to support CCS in industrial sectors
It will be important in developing CCS to get all of the EU Member States to work together, which may be difficult as levels of interest in the technology have varied greatly, the report says. “Notably, some of the countries that could benefit from CCS the most, such as those most reliant on domestic supplies of fossil fuels, have shown little appetite for large investments in this area. Accelerating development and increasing ambition will require a coordinated approach,” the report says. The report suggests that an assessment be completed by each Member State and that knowledge sharing be encouraged. The report also calls on the EU to ensure coherence across national policies, set milestones against which progress can be measured and encourage further exploration, characterization and development of storage sites.
The report also notes that the transportation and storage of CO2 will require additional infrastructure. Improvement to legislation surrounding these activities will be needed, the report says. “In particular, the development of innovative insurance instruments, coupled with risk-sharing between private operators and national governments, will help mitigate some of the business risks of CCS, especially in relation to carbon dioxide storage and potential leakage,” the report says. Potential measures to be taken to address these issues include placing an initial cap on long-term liability for CO2 leakage, developing a financial mechanism for damage remediation and providing for special treatment of demonstration projects.
