Carbon dioxide capture and storage demonstration in developing countries: analysis of key policy issues and barriers

Organisation: Asian Development Bank (ADB)

The importance of the carbon capture and storage (CCS) technologies to fossil fuel based developing countries (or emerging economies) cannot be overemphasised. While there are multiple challenges in launching CCS demonstration projects in developing countries, the higher capital cost combined with significantly high 'energy penalty' is often cited as a key barrier by potential CCS developers and investors.

This report analyses CCS issues and barriers from the developing countries’ perspectives. It puts particular emphasis on finding appropriate financing approaches for CCS demonstration. The report includes discussions and summary findings on a range of relevant issues, such as intellectual property rights and transfer of technology, and trade barriers to CCS in international trade negotiations. The study is supported by extensive data and information available from the People’s Republic of China (PRC) and from India. With suitable customisation, the report analysis may also be applicable to other developing countries.