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