Policy instruments for advancing CCS in Dutch power generation

Topic(s): Carbon capture use and storage (CCUS), Policy law and regulation

Decarbonisation policy in the Netherlands is heavily dependent on the success of carbon capture and storage (CCS). This report discusses several ways to stimulate CCS in the power sector after the round of demonstration activities that are to start around 2015. It describes recent policy developments in the UK, the US and Germany. It concludes that a policy package is the most useful way forward, including a financial incentive to cover additional costs of CCS and a regulatory instrument such as an emissions performance standard (EPS) or other regulation for new coal-fired power plants. It investigates the impact of different variants of policy packages on the Dutch electricity market, including wholesale market prices, CO₂ emissions and export. It looks at pros and cons of various financial instruments and considers possible restrictions the EU legal framework might pose.

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