Commission’s CCS policy takes new direction

 “The policy proposals set out in the draft CCS Communication are precisely what Europe needs to succeed in demonstrating and deploying CCS technologies,” says Frederic Hauge, President of The Bellona Foundation and Vice Chairman of the EU Technology Platform on Zero Emission Fossil Fuel Power Plants (ZEP).

“Bellona applauds the Commission’s proposal to move beyond ETS and introduce new mechanisms such as Emission Performance Standards or a CCS certificate system. Europe’s ability to decarbonize over the coming decades depends on such clear and predictable incentives for the European energy and industry sectors,” says Hauge.  

Need for new momentum after NER 300 failure

In order to achieve EU’s emission reduction targets, the successful deployment of CCS needs to be assured.  As pointed out in the Commission’s Energy Roadmap 2050, all fossil energy must be equipped with CCS by around 2030. The Commission’s draft communication on “The future of CO₂ Capture and Storage in Europe” is a constructive contribution to the strategy to ensure energy security and new industrial opportunities while meeting climate change objectives. 

CCS has met a number of setbacks in recent months, not least the failure to get NER300 funding for a single CCS demonstration project, which puts even greater pressure on the urgent need for the successful operation of a number of such projects. The importance of a successful second round of the NER300 programme in achieving this must not be underestimated.

“A successful policy for demonstrating and deploying CCS would be key for Climate Action Commissioner Hedegaard’s initiative to draw up a climate and energy policy framework for 2030 and particularly the adaption strategy for a more climate – resilient Europe,” says Hauge.

Need for country-specific road maps

Bellona agrees strongly with the Commission’s proposal that all those Member States relying heavily on fossil fuels for their energy and industry development should produce either roadmaps for the carbon-emitting sectors or a national strategy for the deployment of CCS. The work of Bellona in producing such roadmaps for a number of EU Member States (Poland, Hungary, Romania and Greece) has already shown both the benefits of such an approach and the many benefits that the deployment of CCS can bring to the Member States.

Carbon price does not suffice

Bellona accepts that the Emission Trading System (ETS) is likely to achieve its primary objective of a 20% reduction in CO₂ emissions by 2020, possibly with the assistance of the economic crisis, but very seriously questions the possibility of it’s ability to decarbonize the energy sector by 2050.

“The carbon market will not bring about the necessary innovations in the energy and industrial sectors to achieve the necessary emission reductions” says Hauge. “This is why Bellona promoted the need for moving beyond ETS as the main driver for deploying CCS. It is therefore extremely encouraging to see the Commission’s willingness to think in new terms, notably by suggesting an emission performance system or a tradable CCS certificate system.” 

These additional mechanisms will need to be brought into play and, given the long lead times in the energy sector and the “carbon lock-in” that would result from delaying their introduction, Bellona strongly supports the urgency with which the Commission addresses the issue.

The Communication highlights the failure of many governments and industrial players to accept the necessity of CCS. This is a major concern in our battle against irreversible climate change and is also threatening our energy security and competitiveness in the medium to longer term.

The document also calls for a far greater commitment from both governments and industry, including those providing the fossil fuels.

Regulation is necessary either through sectoral emission performance standards or mandatory CCS certificate schemes – or a mixture of both. Rapid progress needs to be made on the drafting and adoption of the necessary legislation. In the meantime, no new fossil fuel power plants should be licensed unless they are fully CCS-ready. No exceptions should be allowed.

More information on CCS can be found on the Bellona Environmental CCS Team’s website.