A Mechanism for CCS in the Post-Paris Era

Paul Zakkour and Wolfgang Heidug
Additional contact information
Wolfgang Heidug: King Abdullah Petroleum Studies and Research Center

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: The Paris Agreement committed ratifying Parties to hold the increase in the global average temperature to much less than 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C. The Agreement also committed Parties to achieving net-zero emissions in the second half of this century. Technologies involving carbon capture and storage (CCS) are seen as a critical part of a portfolio of low-carbon technologies capable of delivering deep cuts in anthropogenic greenhouse gas emissions, in line with the Paris Agreement goals. This paper proposes a new, transformative, incentive mechanism for CCS, forged by a ‘club’ of Parties to the Paris Agreement with a common interest: the pursuit of cleaner fossil fuels. A new CCS-specific technology mechanism is suggested as a means by which to unify the club’s actions, built upon a new tradable asset class specific to CCS: a carbon storage unit (CSU). A CSU would represent a verified tonne of carbon securely stored or sequestered in a geological reservoir i.e., a verified record of carbon stock addition to the geosphere, but with no intrinsic emission reduction or removal value. The authors argue that their proposed storage crediting scheme can complement and supplement carbon pricing, unlock new layers of climate finance for CCS, and overcome barriers historically faced by the technology.

Keywords: Carbon Capture and Storage (CCS); Carbon Dioxide Emissions (CO2) Carbon Emission Mitigation; Markeets; Paris Agreement (search for similar items in EconPapers)
Pages: 39 pages
Date: 2019-04
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.kapsarc.org/research/publications/a-me ... -the-post-paris-era/ First version, 2019 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prc:dpaper:ks-2019-dp52

DOI: 10.30573/KS--2019-DP52

Access Statistics for this paper

More papers in Discussion Papers from King Abdullah Petroleum Studies and Research Center Contact information at EDIRC.
Bibliographic data for series maintained by Michael Gaffney ().