A new report, a collaborative effort by the Carbon Balance Initiative, Oxford Net Zero, and the Carbon Capture and Storage Association (CCSA), investigates policy pathways to achieve the UK ‘s ambitious carbon storage targets and ultimately, net zero emissions.
The report, titled “Markets & Mandates – Policy Scenarios for UK CCS Deployment & Exploring the Role of a Carbon Takeback Obligation,” emphasizes the critical role of carbon capture and storage (CCS) in mitigating climate change.
It highlights the need for a robust policy framework to incentivize the development and deployment of CCS technologies, particularly given the UK’s goal of storing 50 megatons of CO2 annually by the mid-2030s.
Key Findings:
- Current Policies May Fall Short: The report warns that relying solely on the UK Emissions Trading Scheme (ETS) may not be sufficient to drive the necessary scale of CCS deployment.
- Mandates Offer a Solution: The report proposes a combined approach, integrating the ETS with a Carbon Takeback Obligation (CTBO). This mandate would require fossil fuel producers to store a growing percentage of their CO2 emissions, aligning storage development with net zero goals and reinforcing the “polluter pays” principle.
- Addressing Concerns: The report acknowledges potential challenges, including concerns about over-reliance on abated fossil fuels, carbon leakage, industrial competitiveness, energy security, and consumer costs. It underscores the importance of careful policy design and ongoing research to mitigate these risks.
Relevant: UK Govt Allocates $63M To Cut Industrial Carbon Emissions
The report provides policymakers with a framework for implementing carbon storage mandates, including a novel typology and five key design considerations.
This research aims to guide the development of effective policies that can accelerate the transition to a low-carbon future.
Read more: bp, Equinor And Total Reach FID On $5.1 Billion Carbon Capture Projects In The UK
