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Carbon capture and storage (CCS) accepted as UN-based carbon offsetting scheme, paving way for developing country finance

Canberra
10 Dec 2011

Carbon capture and storage (CCS) has been included in the UN-backed Clean Development Mechanism (CDM) carbon offsetting scheme, paving the way for developing countries to access project finance and contribute to global greenhouse gas emission reduction efforts.

“The inclusion of CCS in the CDM is a milestone step in recognising the critical role that CCS can play in reducing emissions and achieving climate change targets,” said Institute CEO Brad Page. “It sets an important precedent for the inclusion of CCS into other financing and technology support mechanisms and establishes a benchmark for managing CCS projects in developing countries.”

The decision came on the last day of the Durban climate talks, after two weeks of intense negotiations about the rules around CCS in the CDM.

“This is a critical development, given that many CCS projects in coming decades will have to be in developing countries if we are to meet climate targets, yet until now there had been no ready access to capital for the development of such projects,” Page said.

Some 3,400 CCS projects need to be up and running by 2050, many of them in the developing world. At the moment the vast majority of projects under development are in Europe, North America and Australia.

Page said: “The decision to include CCS in the CDM is extremely good news and offers hope that we can, in fact, make the stringent emission cuts that are required to avoid dangerous climate. It assists to realise the estimates of the International Energy Agency, which indicates that CCS can deliver about a fifth of required emission cuts by 2050 and can do so at a lower cost than if we do not deploy CCS.”