Carbon Capture and Storage

Rapid deployment of CCS, especially for industry and negative emissions, is necessary to keep global temperature increases to 1.5°C

Combined with rapid emissions reductions, particularly the closure of all European coal plants by 2030, carbon capture and storage (CCS) is essential to meet the EU and UK’s emission reductions targets. This is supported by analysis from organisations including the Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency and the UK Committee on Climate Change: without very rapid emissions reductions and CCS, we can’t meet the Paris Agreement.

Many industrial sectors like steel and cement produce CO2 as part of the manufacturing process, and so have limited options to reduce their emissions. To keep building the low-carbon society, CCS is essential for industry.

In the UK, gas power generation will continue to fall as it is undercut by growth in low-carbon power, but we do not expect it to be phased-out immediately. For climate targets to be met, any gas power must have emissions down from ~450gCO2/kWh to 50-100gCO2/kWh by 2030, and therefore CCS must play a role. For heat, low-carbon solutions are further off, and so we support investigating hydrogen and CCS.

The EU carbon price will not be enough to deliver commercial CCS projects and therefore there will need to be additional support provided at the EU and Member State level.

Sandbag is working with other NGOs, academia and industry to:

  • examine how CCS can be brought forward in Europe through a ‘hubs and cluster approach’, bringing CO2 emissions from different industries and safely storing it offshore;
  • consider how CCS can be sustainably financed, and the role Government needs to play;
  • support the development of a coalition of CCS leaders and champions to make CCS – for industry and negative emissions – a reality;
  • influence the UK Government to follow many of the recommendations in Lord Oxburgh’s September 2016 report “Lowest Cost Decarbonisation for the UK: The Critical Role of CCS

Sandbag also provides the Secretariat for the UK All Party Parliamentary Group on CCS, with the CCSA.

Recent CCS blog posts

In or Out: What’s best for carbon removals and the EU ETS?

What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.

For a systematic use of default value in the CBAM

The current carbon emissions reporting in the CBAM fails to achieve its goal of replacing free allocations under the EU ETS and undermines its integrity. A systematic default value system would improve the CBAM and safeguard the EU ETS.

CBAM DRI loophole requires new free allocation reform

We took part in a targeted survey run by the European Commission’s DG TAXUD on methodologies used to calculate embedded emissions and the rules for adjusting CBAM obligations alongside free allocation under the ETS. Our proposal: free allocation should be reformed to close the ‘DRI loophole’.

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