Introduction

Carbon capture and storage (CCS) represents an important technology within a portfolio of abatement options available for achieving the 2°C goal. The technology is key to the International Energy Agency’s (IEA) 2DS (which aims for an 80% probability of limiting the average global temperature increase to 2°C) under which CCS contributes 14% of the cumulative emissions reductions needed through 2050. Although the deployment rates vary over time and across sectors, the analysis shows a significant contribution from all world regions over the coming decades. Studies show that both the total investment cost and the cost of emissions reduction are much hjosirer for various scenarios when CCS is excluded from the list of mitigation options. The Intergovernmental Panel on Climate Change (IPCC) estimates that without CCS the cost of climate mitigation by 2100 would increase by between 29% and 297%, while the IEA estimates that without investment in CCS, total mitigation costs in the power sector alone would increase by USD 2 trillion by 2050. For those countries that are heavily reliant upon continued use of fossil fuels for economic growth, CCS represents a means of ensuring continued growth and energy security whilst enabling deep cuts in domestic emissions. Furthermore, when combined with the use of enhanced hydrocarbon recovery (EHR), CCS technology offers those countries whose economies are based on oil and gas production a viable option for contributing to global mitigation efforts.

Despite its potential, the uptake of CCS remains significantly behind other low carbon technologies. There are currently 22 CCS projects worldwide, of which 17 are operational. The total CO2 capture capacity of these 17 projects combined is around 31 MtCO2/yr. A number of jurisdictions worldwide have introduced wide-ranging R&D programmes, policy support and financial incentives for CCS and there is ongoing progress in the development of the legal and regulatory frameworks needed to ensure the safe and permanent storage of CO2 in the sub-surface. At the United Nations Framework Convention on Climate Change (UNFCCC) level, the role of CCS as a clean technology has been recognised under the clean development mechanism (CDM).

The aim of this study was to characterise key countries and regions worldwide where CCS could play an important role in mitigation efforts, based on national circumstances and priorities.

An additional objective was to identify how international frameworks, such as the UNFCCC, can support CCS and what these new architectures would mean with respect to the development of nationally determined contributions (NDCs).

Key Messages

• Meeting the long-term goal to limit global temperature rises to 2°C or below compared to pre-industrial levels requires large-scale deployment of low carbon technologies such as CCS.
   
• CCS presents an opportunity for many countries worldwide to reduce greenhouse gas (GHG) emissions. A portfolio of technologies is available for CCS deployment depending on GHG sources and the availability of suitable geological storage sites.
   
• CCS deployment faces a broad spectrum of barriers. Some are technical, some are economic, some are institutional and regulatory, and some concern the cost effectiveness of the technology compared to alternative mitigation options.
   
• Large-scale CCS deployment involves the development of a pathway establishing the necessary framework of actions and policies to incentivise projects and programmes. Countries and regions are at different stages along this pathway, which includes the following steps:
  • Scoping and agenda setting
  • Strengthening institutional arrangements and legal & regulatory frameworks
  • Design and implementation of effective and multifaceted policy portfolios

• The new climate agreement adopted under the UNFCCC (Paris Agreement) could help facilitate deployment of CCS as a mitigation option. Mechanisms within the emerging framework could support technology development in both developing and developed countries and help mobilise climate finance into projects and programs. Into this ‘top-down’ framework, NDCs provide the ‘bottom-up’ opportunity for countries to establish CCS firmly within national GHG efforts that are aligned with the Paris Agreement. The UNFCCC can help support CCS through the following routes:
  • Providing the overall mitigation policy framework for CCS
  • Mobilising finance for CCS projects through both market and non-market based mechanisms
  • Addressing technology needs and helping with capacity building

• Recommendations for further work include more work on defining the exact modalities for facilitating CCS under the UNFCCC and addressing ongoing uncertainties and challenges regarding the future form and scale of market-based support for projects. As it crosses the line of policy recommendations, this is not something IEAGHG would undertake. However, IEAGHG encourages organisations such as the IEA to make use of the information provided in the report and develop such recommendations.