World Bank Examines Barriers to CCS Deployment
23 September 2011: The World Bank has published a report, titled "Carbon Capture and Storage (CCS) in Developing Countries: A Perspective on Barriers to Deployment," which assesses some of the most important barriers facing CCS deployment and assesses the economic and environmental impacts of potential CCS deployment in the power sector in the Balkan and Southern African regions, using a techno-economic model.
Authored by Nataliya Kulichenko and Eleanor Ereira, the report: analyzes legal and regulatory frameworks that could be applicable to potential CCS deployment in the Balkan and Southern African regions; assesses the role of climate finance to support prospective investment needs for CCS projects in developing countries; and examines potential structures for financing power plants equipped with CCS and the impacts of CCS on the electricity rates through a leveled cost of electricity model.
The authors conclude that some lower-cost opportunities could provide platforms for the first CCS projects in developing countries. However, the report notes broader CCS deployment is contingent upon a number of factors, including an availability of a mix of sources of finance from public funds and carbon market mechanisms, as well as concessional financing sources. In parallel, it recommends that financing be supported by legal and regulatory frameworks not only to define mechanisms for access to concessional and climate finance, but also to reduce investor risk and create market drivers to leverage all available sources of domestic and international support. [Publication: Carbon Capture and Storage in Developing Countries: A Perspective on Barriers to Deployment] [World Bank Press Release]