Stakeholders Suggest on the Linkage of CCS and Carbon Market
The Workshop on Linkage Study of CCS and Carbon Market in Guangdong was held in Guangzhou on Aug 30. Stakeholders from ETS, CCS technical, financing and policy area and relating companies promptly advised on the study.
This study was a Guangdong DRC Low Carbon Development Special Fund project undertaken by UK-China (Guangdong) CCUS Centre to offer policy suggestions on including CCS in carbon market.
Carbon capture, utilization and storage (CCUS/CCS) is one of the low carbon technologies that can substantially reduce greenhouse gas emissions. This process includes CO2 capture, transportation, utilization and storage. According to IEA projection, CCS can contribute 13% of emission reduction to realize 50% greenhouse gas emission reduction by 2050.
Guangdong was included in the first 7 carbon market pilots in China. The energy intensive industries (power generation, cement, chemicals, steel) are required to reduce their emissions to a limited level and purchase the emission allowance from other market participants when they are not able to do that.
This study can be prospective for the establishment of national carbon market. The topics experts considered essential included the necessity of CCS compared to other low carbon technologies as renewables, public awareness of CCS, the trend of CCS cost decline, strategies of supporting CCS projects through carbon market, reasonable reduction calculation method and allowance allocation plan, the conditions and method of linkage of CCS and carbon market and the definition of concepts relating the process of CCS. (UK-China (Guangdong) CCUS Centre)