The Impact of Negative Emissions Technologies and Natural Climate Solutions on Power-Sector Asset Stranding

Francois Cohen and Alexander Pfeiffer

INET Oxford Working Papers from Institute for New Economic Thinking at the Oxford Martin School, University of Oxford

Abstract: The generation capacity of existing and currently planned power generators goes beyond the limits of a 2°C carbon budget. Some assets will have to be stranded unless carbon is sequestrated with retrofit CCS or the carbon budget is expanded by the large-scale deployment of negative emissions technologies (NETs), potentially including land-based approaches referred to as "natural climate solutions". In this paper, we show that NETs could reduce stranding by 26% to 46% over the course of the century, depending on the pursued climate goal. The bulk of the additional carbon budget is likely to go to efficient gas generators; the stranding of coal-fired power plants occurs irrespective of the availability of NETs.

Keywords: negative emissions technologies (NETs); carbon budget; stranded assets; climate policy; power generation (search for similar items in EconPapers)
JEL-codes: Q01 Q4 Q5 Q54 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018-01
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Persistent link: https://EconPapers.repec.org/RePEc:amz:wpaper:2018-02

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