HR: 1340h
AN: U43C-1409    [Abstracts]
TI: Policy Needs for Carbon Capture & Storage
AU: * Peridas, G
EM: gperidas@nrdc.org
AF: Natural Resources Defense Council, 1200 New York Ave NW, Suite 400, Washington, DC 20005,
AB: Climate change is one of the most pressing environmental problems of our time. The widespread consensus that exists on climate science requires deep cuts in greenhouse gas emissions, on the order of 50-80% globally from current levels. Reducing energy demand, increasing energy efficiency and sourcing our energy from renewable sources will, and should, play a key role in achieving these cuts. Fossil fuels however are abundant, relatively inexpensive, and still make up the backbone of our energy system. Phasing out fossil fuel use will be a gradual process, and is likely to take far longer than the timeframe dictated by climate science for reducing emissions. A reliable way of decarbonizing the use of fossil fuels is needed. Carbon capture and storage (CCS) has already proven to be a technology that can safely and effectively accomplish this task. The technological know-how and the underground capacity exist to store billions of tons of carbon dioxide in mature oil and gas fields, and deep saline formations. Three large international commercial projects and several other applications have proved this, but substantial barriers remain to be overcome before CCS becomes the technology of choice in all major emitting sectors. Government has a significant role to play in surmounting these barriers. Without mandatory limits on greenhouse gas emissions and a price on carbon, CCS is likely to linger in the background. The expected initial carbon price levels and their potential volatility under such a scheme dictates that further policies be used in the early years in order for CCS to be implemented. Such policies could include a new source performance standard for power plants, and a low carbon generation obligation that would relieve first movers by spreading the additional cost of the technology over entire sectors. A tax credit for capturing and permanently sequestering anthropogenic CO2 would aid project economics. Assistance in the form of loan guarantees for components of the technology that make financing problematic due to insufficient performance guarantees would help first movers. The development of a pipeline network for transporting CO2 will require centralized planning in order to materialize and make use of economies of scale. The federal government should significantly accelerate its research, development and demonstration program, with particular emphasis on multi-megaton injections in representative geological settings. Finally, a comprehensive regulatory framework for large-scale injections is a high priority item that can and should be developed now, with scope for revision after our experience with CCS projects grows.
DE: 6615 Legislation and regulations (6324)
SC: Union [U]
MN: 2007 Fall Meeting