Carbon Capture and Storage Economics
Carbon Capture and Storage can deliver large reductions in the short term
Large volumes of CO2 reductions are economically feasible in the near term; however, there still exists a considerable economic gap that must be addressed.
Investing in Carbon Capture and Storage (CCS) technology is expensive and is not justified with current climate change policies and expected CO2 compliance costs. The chart below emphasizes the need for government and industry to work together through an initial transition period to enable the deployment of CCS.
CCS costs are expected to decline as climate change policy drives up the cost of emitting CO2. In the future, these will intersect and CCS will be a justifiable business investment. In order for the full potential of CCS to be realized though, federal and provincial governments must provide stable financial incentives to drive CCS development. Without government support, CCS will not become economic. Communication must continue between industry and government to develop the necessary regulatory and financial drivers that make sense for CCS deployment.
