www.ecn.nl
New options for CCS in the UNFCCC
Stefan Bakker (ECN), Heleen de Coninck (ECN), Markus Hagemann (Ecofys)
Global CCS Institute side event COP17, Durban, 30 November 2011
2 1-12-2011
Multilateral initiatives related to CCS
Bilateral partnerships on CCS
3 1-12-2011
What issues do they address?
4 1-12-2011
What are they not covering?
• Technology: mostly power sector; industrial,
upstream and biomass-CCS hardly included
• Regulatory framework – only general studies
• Project financing – only R&D supported
• Public acceptance – no local communication
strategies
• Limited geographical focus of partnerships
- Mostly related to China
5 1-12-2011
Interest in CCS in developing countries?
• Enhanced oil recovery (e.g. OPEC)
• Contribution to GHG reduction (e.g. South Korea,
South Africa, China)
• Development of knowledge and technology
• Early opportunities, e.g. Natural gas processing
(e.g. Indonesia)
• NAMA submissions (Ghana, Botswana)
6 1-12-2011
Which CCS options to finance?
7 1-12-2011 CCS MAC for developing countries
(Bakker et al., 2011)
Nationally appropriate mitigation actions
• Action that reduces GHG below BAU, in the
context of sustainable development
• (Unilateral) – supported – (credited)
• Current bilateral initiatives could be scaled up:
- Non-Annex I countries count CCS under
voluntary emission reduction contributions
- Annex I countries contribute under fast start
financing
8 1-12-2011
Bilateral offset mechanisms
• CCS in CDM could pave way for crediting of CCS
projects
• Alternatives to CDM being developed, e.g. by
Japan
• CCS in principle quite suitable for crediting: easy
to prove additionality
• Other issues such as liability, site characterisation
etc could be taken from CCS-CDM modalities and
procedures
9 1-12-2011
Climate Technology Centre and Network
for CCS
• Secretariat + innovation centre in a developing country
• Virtual knowledge and learning forums
• Regional and global implementation and collaboration
networks
• Functions for CCS:
- Addressing open issues and provide common voice for roll-out
- Increase knowledge and capacity for experts and policymakers
- Identify financing sources for demonstration
- Involve private sector and local community
- Set internationally accepted standards for CCS storage sites
- Create international information campaigns on CCS
10 1-12-2011
Specific fund for CCS demonstration
• Current financing mechanism (WB, GEF, CTF,
CDM etc) do not provide sufficient resources
- Additional $ 5 - 17 billion is needed by 2020
• CCS fund could provide incentives for early
demonstration projects in different sectors in
developing countries
- Financing of incremental cost (investment,
operational)
11 1-12-2011
Based on: WRI (2011)
Conclusions
• Demonstration of CCS in power, industry and up
stream sectors is required by 2020
• Current international initiatives and financing
mechanisms lack focus on financing of full scale
projects
• New mechanisms under the UNFCCC can play a
role
12 1-12-2011