Overview on CCS in developing countries

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Presentation by Paul Zakkour, Director of Carbon Counts at Institute side event "Making sense of CCS in the UNFCCC" in Doha at COP 18 talks.

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Overview on CCS in developing countries

  1. 1. CCS in developing countries Paul Zakkour Carbon Counts GCCSI Side Event, COP18, Doha – 28th November 2012
  2. 2. Overview• Where are we today? – CCS drivers & needs – CCS interest & commitments – Supporting CCS through climate finance• What is the future role for the UN? – Centralised view – Decentralised view 2
  3. 3. CCS potential in developing countries Abatement cost $/tCO2 avoided 150 Drivers Non Annex I country CCS MACC - 2020 125 Cement Climate Energy 100 Gas power Change Security Iron & Steel 75 Coal power Chemicals 50 New coal New large Prolong Continue Gas processing power scale O&G O&G assets coal use 25Abatement cost$/tCO2 avoided 0 0 20 40 60 80 100 120 150 Non Annex I country CCS MACC - 2020 Abatement potential Africa MtCO2 per year 125 Other • IEA CCS Roadmap: 116 MtCO2 avoided 100 India by 2020 75 China • 80 MtCO2 abatement <$50/tCO2 Middle East Other 50 developing Asia MACCs from: Zakkour, P. D, Cook, G., Carter, A., Streck, C. and Chagas, T. Latin America (2011) Assessment of climate finance sources to accelerate carbon capture 25 and storage deployment in developing countries. A report by Carbon Counts and Climate Focus for the World Bank. 16th June 2011. Washington D.C. 0 Data based on IEA Technology Roadmap for CCS. © OECD/International Energy Agency, 2009. Note: Includes cost of capture, transport and storage 0 20 40 60 80 100 120 Abatement potential MtCO2 per year
  4. 4. CCS is “nationally appropriate” for many CHINA Coal-fired power GULF/EGYPT Enhanced oil recovery MEXICO (Cantarell) Enhanced oil recovery ALGERIA Contaminated gas INDIA (UMPPs) Coal-fired power SOUTH CHINA SEA Contaminated gas BRAZIL (Pre-Salt) BOTSWANA (Mmamabula) Coal-fired power Contaminated gas Difficult oil SOUTH AFRICA (Medupi) Coal-fired power 4
  5. 5. CCS in NAMA contexts• South Africa “The development of the CCS technology...is a part of the total solution. This technology is really welcome, and it is important that we work together moving forward.” - President Jacob Zuma, 2011 South Africa has dedicated CCS Centre, CO2 storage map, and commitment to pilot project by 2016• Botswana “Under the national emission reduction portfolio, projects and programmes will include...CCS” - AWGLCA/.../2011/INF.1• Algeria Build on existing actions “including CCS” - AWGLCA/.../2011/INF.1• Brazil In the Pre-Salt developments....“Petrobras has decided, for environmental reasons, it will not vent the naturally produced CO2” - Raul Estrella, Head of E&P, Petrobras• China & South East Asia ADB providing technical assistance, including CCS Roadmap development• India Exploring CCU opportunities (e.g. algae) 5
  6. 6. How much support is needed? Carbon market Additional public• Investment need = US$4 bn 150 support only support required Cost of abatement (US$ per tCO 2 avoided) per year to 2020 125• Carbon market US$0.3-1.6 100 bn/yr 75• Further US$5-18 bn need to US$ 0.9 bn 50 $50/tCO2 support investment costs 25 US$ 1.7 bn US$ 1.6 bn (capex) 0 0 20 40 60 80 100 120 5 Abatement potential MtCO2 per year US$ 4.2 bn 4 grants US$ 0.9 bn • Loan or grant financeAdditional cost (US$ billion) lending Additional public will be critical to 3 additional support carbon market US$ 1.7 bn required supporting higher-cost finance 2 $50/tCO2 leveraged projects in sectors credits Carbon such as power, iron & 1 $25/tCO2 market US$ 1.6 bn $15/tCO2 credits support only steel, cement etc. 0 credits 6
  7. 7. Should developed countries support CCS? “The world doesn’t have an emissions problem, it has a Chinese coal problem”Source: Davis, S.J. And Caldeira, K. 2010. Consumption-based accounting of CO2 emissions. Proc. Of Natl. Academy of Sci. 7
  8. 8. Supporting CCS in fragmented marketSource: Responding to Climate Change (RTCC) 8
  9. 9. Role of UNFCCC institutions (centralised) • Project Standards• Host country approval LOA • DOE Accreditation• Project permitting • Project Registration• Regulatory oversight CDM EB • Monitoring CCS WG • Project Issuance • Project Registry • Framework (ITL) Host Country DNA Project A CERs Scheme X Project B Scheme Y Project C Tech Mech & CTCN Scheme Z Project D • Technical assistance • Technical assessments • Capacity building • Institutional design 9
  10. 10. Role of UNFCCC institutions (decentralised)• Technical assistance • Project Guidelines• Technical assessments • Verifier Guidelines• Capacity building • Country Registry/Library• Institutional design • Project Registry Tech Mech & CDM EB • Framework (tracker) CTCN CCS WG Country A Host Country Scheme X Country B DNA Scheme Y Country C Scheme operator Scheme Z Country D • Bilateral agreements/linking rules • Project permitting • Regulatory oversight 10
  11. 11. Recap1. CCS is nationally appropriate for many developing countries2. Some countries actively pursuing CCS, and consider part of their NAMA commitments3. Support from Annex I countries is essential to assist with demonstration of the technology4. UN can continue to play an active role in mobilising, facilitating and/or regulating CCS within the future global carbon market 11
  12. 12. Further info inthese reportsAvailable at ourwebsiteThank youPaul ZakkourEmail: paul.zakkour@carbon-counts.comWeb: www.carbon-counts.com

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