Technical support for an enabling policy framework for carbon dioxide capture and geological storage. Task 3. Incentivising CO2 capture and storage in the EU

To date CO2 capture and storage (CCS) is not deployed at a commercial scale, and a range of policy instruments could be used to provide adequate incentives for large scale deployment of CCS in the European Union. Five groups of incentives are discussed: (1) the EU Emissions Trading Scheme (weak and strong version); (2) Member-State-based public financial support through investment support, feed-in subsidies or a CO2 price guarantee; (3) an EU-level low-carbon portfolio standard with tradable certificates; (4) an EU-wide CCS obligation for all new fossil-fuel-based power capacity, and (5) public-private partnerships for realizing a CO2 pipeline infrastructure. The nature of the policy, mainly in case the scale of the instrument matters and much public financial is involved, determines whether it will be implemented by the EU or at the Member-State level. Support for CCS projects at the Member-State level, however, will require amendment of the Community Guidelines for State Aid for Environmental Protection