Use of the clean development mechanism for CO2 capture and storage

Publisher Summary This chapter presents the results of a study commissioned by the IEA Greenhouse Gas (GHG) R&D Programme to assess the potential for carbon dioxide capture and storage (CCS) projects to make use of the Kyoto Protocol's Clean Development Mechanism (CDM) and to analyze the barriers to implementation of such projects. The discussion provides a summary of the international regulatory process and assesses how CCS projects may be able to address approval criteria. Colombia, China and India were selected for an in-depth analysis of their project approval process, CCS awareness and interest, activity in related fossil fuel industries and infrastructure, geophysical resources, relevant national polices, and the regulatory and legal situation. It was concluded that, in general, the largest barrier at this time to significant penetration of CCS technologies under the CDM is the relatively low prices being paid in the GHG market vis a vis the current costs involved for CCS implementation, primarily for CO 2 capture. However, there appears to be a significant potential for commercially viable CCS projects under the Kyoto mechanisms over the longer term. At this stage, continued emphasis on deployment of CCS demonstration projects in high-emitting developing countries would be beneficial to the realization of significant penetration of CCS in the global carbon emissions market. It is clear that CCS technology can make a significant contribution to the global effort to address climate change. The chapter concludes that there is significant potential for commercially viable CCS projects under the Kyoto mechanisms over the longer term.