The government of Japan has announced that it will offer subsidies the use of carbon capture technology for the industrial and power sector and the subsequent underground storage of the captured emissions.
The nation’s Ministry of Economy, Trade and Industry has set a goal to reach net zero by 2050 and will begin trading emissions in 2026.
Many CO2 emitters will be expected to apply radical measures such as subterranean storage of CO2, which is expected to cost around 10,000-18,000 yen (~$63-115) per ton of CO2 – by comparison, the cost in Europe is roughly about $70.
Hence, government support will be necessary in order to geological carbon storage in the country.
And so, Japan is now offering to cover the price difference between CO2 storage costs and carbon capture costs for 10 years in Norway and up to 15 years in the UK.
Discussions and the development of a legal framework, which will cover the costs of capturing CO2 emissions from industrial emitters, transportation to storage sites and underground storage processes, are set to commence this month.
Read more: Japan To Mandate Emissions Trading For All Companies Emitting Over 100,000 Tons Of CO2
