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EU states under pressure to advance CO2 storage

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Published 03 July 2008

EU environment ministers will today (3 July) be urged to accelerate the development of carbon capture and storage (CCS) demonstration plants during a two-day informal Council meeting of EU energy and environment ministers, the first of its kind under the French EU Presidency.

"If we have to use coal, we must at least ensure that its emissions do not escape into the atmosphere. That's why we have to accelerate the development of carbon capture and storage technology," UK Liberal MEP Chris Davies will tell EU environment ministers in Paris today. 

Davies, who is Parliament's rapporteur on the Commission's proposal for a legal framework for the geological storage of CO2, says the EU member states must stand by pledges made in March 2007 to construct 12-15 CCS demonstration plants by 2015. He hopes the French EU Presidency will use its mandate to make progress on the issue. 

The MEP is also pushing for all existing fossil fuel power plants to be retrofitted with CCS technology by 2025, and wants a moratorium on new plant construction after 2015 unless the facilities are able to prevent 90% of their CO2 emissions from entering the atmosphere (EurActiv 07/05/08).

Carbon market pays?

Davies favours using the EU Emissions Trading Scheme (EU ETS) as one option for freeing up money for the development of CCS demonstration plants. Under such an approach, installations using CCS would receive double or even multiple ETS credits for each tonne of CO2 captured and stored. These credits could then be sold on the EU's carbon market, according to Davies.

Irish Christian Democrat MEP Avril Doyle, Parliament's rapporteur on the Commission's 23 January proposal for a directive to revise the EU ETS for the period beyond 2013, is also in favour of using the system to help pay for CCS. 

But instead of a double credit system, Doyle wants to introduce an amendment to the new directive that would require up to 500 million tonnes of CO2 allowances to be given "to large-scale commercial demonstration projects that are undertaking the capture and geological storage of carbon dioxide in the territory of the EU or in developing countries" that have ratified any future global climate change deal, according to a draft amendment by the rapporteur.

These allowances would come from the so-called 'new entrants reserve' in the EU ETS, which is normally set aside for new participants (industrial installations) in the scheme. 

However, it remains unclear whether member states would agree to being told how and to whom to allocate emissions. National authorities, not the Commission, are charged with processing any applications for allowances from the new entrants reserve. 

In addition to discussions on CCS, ministers will also hear from Finnish Green MEP Satu Hassi, Parliament's rapporteur on a Commission proposal that outlines how member states should share the 'effort' of reducing CO2 emissions in sectors not covered by the EU ETS. Her amendments are expected to receive a critical reception from national governments (EurActiv 04/06/08).

Next steps: 
  • 3-4 July: Informal meeting of EU environment and energy ministers, Paris;
  • 25 Sept.: Adoption of Davies report by Parliament's Environment (ENVI) Committee;
  • 7 Oct.: Adoption of Doyle report by ENVI Committee.
Background: 

Carbon capture and storage (CCS) is a process involving the separation of carbon dioxide from the gases produced by large stationary power plants. The CO2 is then compressed, transported and stored in geological formations, either on land or in the ocean (see EurActiv LinksDossier).

The Commission backs CCS as an essential part of its CO2 reduction efforts, and put forward a Communication on a legal framework for storing CO2 as part of its climate and energy package of 23 January (EurActiv 28/01/08). In March 2007, EU member states also pledged to have 10-12 CCS demonstration plants up and running by 2015.

But the technology is expensive and decreases the average efficiency of power plants by up to 20%. Neither member states, the Commission nor the private sector have thus far pledged any significant funding to drive the development of the demonstration plants. 

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