Australian Federal Budget – More Support for CCS Needed to Achieve Net-Zero
25th October 2022
The Global CCS Institute said the Australian Federal Budget, although containing important measures across climate, was lacking the necessary support for carbon capture and storage (CCS).
Alex Zapantis, General Manager – Commercial at the Global CCS Institute, said CCS is critical to achieving climate targets and requires a range of incentives to reach necessary scale.
“CCS is critical to achieving global climate neutrality and will play an important role in achieving national net-zero targets,” said Mr Zapantis.
“Australia is well placed to play a leading global role in lower-carbon LNG, clean hydrogen, and carbon dioxide (CO2) storage as a service, all made possible by CCS. Not only is the technology suite essential to reducing CO2 emissions, CCS investment also offers significant social and economic benefits, most notably a just transition for communities reliant on carbon-intensive industries.”
“The Institute recognises and welcomes ongoing support for CCS in hard-to-abate industrial sectors and negative emissions and funding for the Middle Arm Sustainable Development Precinct in the Northern Territory. However, funding previously committed to CCS should have been realised. The Government’s decision places it in stark contrast to other advanced economies that are providing significant support for CCS, recognising its importance to climate ambition and economic prosperity. The European Union and the governments of the Netherlands, Denmark, Norway, the UK, USA and Canada are each providing billions of dollars to support CCS investment and secure the future of their heavy industry.”
“Domestic policy settings must attract private capital to deploy CCS at necessary scale, requiring a range of incentive mechanisms. Coupled with the strengthening of the Safeguards Mechanism and access to Australian Carbon Credit Units (ACCUs), funding for CCS is necessary to provide confidence for investors.”
“Decarbonising the Australian economy without CCS is nearly impossible. Without government support at this critical juncture, the transition will be far more costly and volatile, particularly for our regions.”
CCS is proven and well understood, with 30 operational facilities around the world with a cumulative capture capacity of more than 40 million tonnes of CO2 per year. A recent report from the Institute revealed momentous growth in the CCS project pipeline, with 196 facilities in various stages of development around the world and improving policy environments from governments.
Matt Steyn (Melbourne): +61 405 018 007 firstname.lastname@example.org
About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security.