The Global CCS Institute, CO2CRC and Carbon Market Institute have today spoken out on the Australian Government’s plans to accelerate the deployment of carbon capture and storage (CCS).
As reported by gasworld earlier today, the Morrison Government has accepted recommendations made by an expert panel that include pushing forward legislation to enable the development of CCS projects and opening up a private sector investment in CCS.
The Global CCS Institute
The Global CCS Institute, an international think-tank backed by governments, industry, research and financial institutions, has welcomed all CCS recommendations made by an expert panel review into emission reductions policy in Australia.
“We welcome the Government’s response to the King Review as a critical step forward in unlocking private sector investment and accelerating the deployment of CCS in Australia,” said Brad Page, CEO of the Global CCS Institute.
According to Page, the response signals the accelerated commitment to progressing CCS technologies in Australia, as well as providing recognition of the key role CCS can play in decarbonising the hard-to-abate industrial sectors and unlocking new clean energy options.
“The increased deployment of CCS in Australia provides the opportunity to transition to a net-zero emissions economy and secure a clean energy future, whilst sustaining local communities reliant on extractive industries.”
Australian CCS research organisation CO2CRC has also welcomed the Federal Government’s recognition of the role of CCUS in reducing Australia’s carbon emissions.
“The Government’s technology neutral approach will Australia to economically meets it carbon reduction targets. As the King Review noted, the goal is to reduce emissions and technology development can lower the cost of achievement this objective,” said David Byers, CEO of CO2CRC.
“Amending the ERF legislation to enable a methodology to be developed for CCUS acknowledges the value of CCUS and demonstrates the technology driven approach that will all Australia to strengthen industry and create jobs while reducing CO2 emissions.”
“Focusing on the reduction ofCO2 emissions rather than on a particular technology is the consensus of experts around the world and CO2CRC welcomes the opportunity to contribute to this technology driven approach.”
The Carbon Market Institute
Much like the Global CCS Institute and CO2CRC, the Carbon Market Institute (CMI) also welcomes Australia’s commitment to strengthen existing carbon trading mechanisms but warns of possible perverse outcomes from some proposals.
“There are a number of welcome steps in the King Review that have been supported by the Government, but there will be devil in the detail that will need to be carefully tracked through the consultation processes,” explains John Connor, CEO of CMI.
“CMI supports the ability for companies to extend their trade in carbon reduction credits within the Safeguard Mechanism. However, allowing this without proper constraints and declining Safeguard baselines, could jeopardise robust carbon markets as well as clean technology development and deployment in the carbon farming and other decarbonisation industries.”
“Similarly, allowing the carryover of Kyoto credits will reduce incentives for business and government to reduce emissions and for the more ambitious reduction targets Australia and other countries need in their current and future nationally determined contributions.”
“In our submission to the King Review, CMI supported the exploration of new methodologies to incentivise industrial emissions reduction, this included Carbon Capture, Use and Storage.”
“We are not opposed to developing a CCS methodology, but it should not lead to perverse outcomes or prolong the due or scheduled closures of older, high emissions-generating facilities.
“CMI will work with its members, the Government and other stakeholders on these recommendations so that we can manage the risks and seize the opportunities of a transition to net-zero emissions by 2050.