Economic Potential of DACCS and Global CCS Progress
NEWFOUNDLAND
AND LABRADOR
NOVA SCOTIA
NEW
BUNSWICK
PRINCE
EDWARD
ISLAND
NORWAY
SWEDEN
FINLAND
SHENYANG
SAITAMA
ESTONIA
LATVIA
DENMARK
SHANGHAI
LITHUANIA
NETHERLANDS
UK
TAIWAN
IRELAND
POLAND
GERMANY
CZECHIA
UKRAINE
BELGIUM AUSTRIA
SLOVAKIA
سد
HUNGARY
FRANCE
ITALY
BULGARIA
ROMANIA
CROATIA
SPAIN
SLOVENIA
SWITZERLAND
The need to include CCS in Article 6 is underpinned by the fact that carbon dioxide
removal (CDR) is vital to unlocking the 'net' in net-zero emissions and achieving the
1.5°C goal of the Paris Agreement. The use of CCS networks can further streamline cost
and resource efficiency, especially when planned on a regional or global level.
TOKYO
OUTLOOK FOR CCS IN CARBON MARKETS
CCS plays a versatile role in supplying point-source capture and storage as well as CDR,
while offering the capacity to store CO2 over longer and more permanent timeframes
than other mitigation/removal options. While the price of a CCS carbon credit will be
determined by underlying market supply and demand interactions, credits generated
by CCS projects could attain higher values because geological storage of CO2 is much
more secure than storage via nature based solutions (eg, storage in trees or soil). Prices
of CCS-generated credits could also increase if market participants would be willing to
pay a premium for innovative and novel solutions such as DACCS and BECCS, which
currently have no standardised methodologies in place. To further unlock and scale
up CCS-related climate action in carbon markets, the CCS+ Initiative² is working on
delivering an integrated methodological framework for generating carbon credits for
the full suite of CCS activities for the VCMs and Article 6 (8).
The upcoming years will indeed be critical to establishing ways to direct investment and
climate finance to CCS, with current thought leadership in academic and industry circles
focusing on carbon sequestration/storage units (CSU) and carbon storage obligations
(CSO)/carbon takeback obligations as a solution to enhancing the expected value
resulting from permanent geological storage (9-11).
PORTUGAL
ETS IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION
■CARBON TAX IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION
ETS & CARBON TAX IMPLEMENTED OR SCHEDULED
SERBIA GREECE
MONTENEGRO
ETS IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION,
CARBON TAX UNDER CONSIDERATION
CARBON TAX IMPLEMENTED OR SCHEDULED FOR
IMPLEMENTATION, ETS UNDER CONSIDERATION
ETS OR CARBON TAX UNDER CONSIDERATION
FIGURE 18: WORLDWIDE CARBON MARKETS - COMPLIANCE AND VOLUNTARY (SOURCE: WORLD BANK 2022)
2 The CCS+ Initiative includes the plus sign to indicate the use of CCS at point-source, CCUS and CDR in carbon markets.
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GLOBAL CCS
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