HR: 1340h
AN: U43C-1410    [Abstracts]
TI: A Policy Option To Provide Sufficient Funding For Massive-Scale Sequestration of CO2
AU: * Kithil, P W
EM: pkithil@earthlink.net
AB: Global emissions of CO2 now are nearly 30 billion tons per year, and are growing rapidly due to strong economic growth. Atmospheric levels of CO2 have reached 380 ppm and recent reports suggest the rate of increase has gone from 1% per year in the 1990's to 3% per year now – with potential to cross 550ppm in the 2020 decade. Without stabilization of atmospheric CO2 below 550ppm, climate models predict unacceptably higher average temperatures with significant risk of runaway global warming this century. While there is much talk about reducing CO2 emissions by switching to non-fossil energy sources, imposing energy efficiency, and a host of other changes, there are no new large-scale energy sources on the horizon. The options are to impose draconian cuts in fossil energy consumption that will keep us below 550ppm (devastating the global economy) – or to adopt massive-scale sequestration of CO2. Three approaches are feasible: biological ocean sequestration, geologic sequestration, and biological terrestrial sequestration. Biological sequestration is applicable to all CO2 sources, whereas geologic sequestration is limited to fossil-fuel power plants and some large point-source emitters such as cement plants and large industrial facilities. Sequestration provides a direct mechanism for reducing atmospheric levels of CO2, whereas offsetting technologies such as wind power or improved efficiency, reduce the need for more fossil fuels but do not physically remove CO2 from the environment. The primary geologic technique, carbon capture & sequestration (CCS), prevents CO2 from entering the atmosphere but likewise does not reduce existing levels of atmospheric CO2. Biological sequestration (ocean or terrestrial) physically removes CO2 from the atmosphere. Since we cannot shut down our global economy, urgent action is needed to counteract CO2 emissions, and avoid catastrophic climate change. Given the long lead time and/or small impact of offsetting energy sources, sequestration is the only way to achieve near and medium-term reductions in atmospheric CO2 levels. To finance massive-scale sequestration of CO2, we propose the World Trade Organization (WTO) become an active player in the sequestration market. Given the WTO's role as overseer of international trade agreements annually representing $30 trillion in imports and exports of goods and services, it is by far the largest global economic force and therefore offers the broadest economic base. Absent a real solution to CO2 emissions, the global economy - and world trade - will shrink dramatically. The WTO can jumpstart the market for CO2 sequestration by issuing long term contracts to purchase bona fide sequestration-derived CO2 credits. Under this proposal, an initial price of $100 per ton which steps-down by 5% per year could bring forth the sequestration investment needed to achieve upwards of 10 billion tons sequestered CO2 per year by 2025 (seven billion tons from biological ocean sequestration and at least three billion tons from geologic and terrestrial sequestration). Assuming a contract term of 40 years, and a parallel commodity market continues to develop for CO2 credits, at some time in the future the WTO's contractual price will be less than the commodity market price – and the WTO begins to recover its investment. Under one set of assumptions, the net WTO annual subsidy would peak at $86 billion by 2022, equal to an across-the-board WTO tariff on imports and exports of about 1.01%, then become positive a few years later as the market price climbed above WTO's contracted price. Under this proposal, the WTO effectively subsidizes CO2 sequestration in the near to medium term and then recoups its investment and reaps large profits over the long term.
UR: http://www.atmocean.com
DE: 6610 Funding
DE: 6615 Legislation and regulations (6324)
DE: 6620 Science policy (0485)
SC: Union [U]
MN: 2007 Fall Meeting