CEPS欧洲政策研究中心-An-enabling-framework-for-carbon-capture-and-storage-_CCS_-in-Europe-_8211-CEPS_10页_608kb

Summary of the Document: An Enabling Framework for Carbon Capture and Storage (CCS) in Europe

Core Content

This document outlines the critical role of Carbon Capture and Storage (CCS) in achieving the EU's long-term climate goals, particularly net-zero emissions by 2050. It highlights that CCS is essential for decarbonizing energy-intensive industries, which account for about a fifth of all EU greenhouse gas emissions. Without CCS, zero-carbon products in sectors like steel and cement production may not be feasible. The report emphasizes the need for a coordinated policy and investment framework to overcome economic and political barriers and to support the development of CCS infrastructure and technology.

Main Points

• Necessity of CCS: CCS is a transformational technology for the net-zero economy, particularly for industries where emissions are hard to abate.
• Deployment Challenges: CCS is not yet available at scale and requires significant capital investment. Capture rates need to reach at least 90% for the technology to be viable, though higher rates significantly increase costs.
• Financing Needs: A combination of private and public funding is essential for CCS development. The EU ETS Innovation Fund and the Connecting Europe Facility (CEF) are among the instruments that can support CCS, but their scope is limited.
• Market and Regulatory Considerations: CCS infrastructure may have characteristics of a natural monopoly, requiring appropriate regulation. Current EU legislation lacks sufficient clarity and flexibility to address the scale and complexity of CCS deployment.
• Infrastructure Development: Initial projects should focus on industrial clusters with high CO₂ supply and concentration. Open-access infrastructure, such as pipelines, can help scale up CCS usage and reduce costs.
• CCU as an Option: Carbon Capture and Use (CCU) can provide additional revenue but is not a viable alternative to CCS for achieving permanent emissions reductions. CCU is energy-intensive and may not ensure long-term CO₂ sequestration.
• Cross-Border Collaboration: The London Protocol restricts CO₂ trade, but amendments could enable cross-border CCS development. Bilateral agreements are also a possibility to bypass these restrictions.
• Public-Private Partnerships: The choice between Regulatory Asset Base (RAB) and Public-Private Partnership (PPP) models depends on the need for flexibility and cost-effectiveness. PPPs are more suitable for timely and cost-effective delivery, but RABs may offer more policy adaptability.

Key Recommendations

• Policy Support for Capture Rates: Improve capture rates in major industries to demonstrate theoretical potentials and reduce reliance on negative emissions.
• Focus on Industrial Clusters: Develop CCS infrastructure in industrial clusters to leverage high CO₂ supply and concentration.
• EU State Aid Flexibility: Amend EU state aid rules to support CCS infrastructure development.
• Market and Financing Models: Establish clear market and financing models for CCS, both in capital and operational phases.
• Public Investment Instruments: Utilize EU funding mechanisms such as the ETS Innovation Fund and CEF to support CCS, but also consider green bonds and other innovative financing tools.
• Regulatory Clarity: Enhance regulatory frameworks to address safety, monitoring, liability, and cross-border CO₂ transport and storage.
• Stakeholder Collaboration: Encourage partnerships between industry and infrastructure providers to reduce cross-chain risks and ensure project viability.

Open Questions and Challenges

• Financing Models: The choice between RAB and PPP models should be guided by the need for cost reductions and economies of scale.
• Operational Support: There is a need for policy to differentiate between capital and operational support, particularly for ongoing energy use in CCS processes.
• Carbon Price and Incentives: The EU ETS carbon price is currently too low to support the investment case for CCS. Subsidies should be structured to avoid market distortions and ensure alignment with climate goals.
• International Competition: Addressing embedded carbon in international trade is crucial for CCS to emerge at scale, especially in trade-intensive sectors.

Conclusion

CCS is a vital component in the EU's strategy to decarbonize industry and achieve net-zero emissions. However, its large-scale deployment requires overcoming significant economic, regulatory, and political barriers. The development of a robust and flexible policy framework, combined with strategic investment and cross-border collaboration, is essential to enable the growth of a sustainable CCS market and support the transition to a low-carbon economy.