Abby L. Harvey
GHG Monitor
10/23/2015
Carbon capture and storage holds the potential to help the United States meet its environmental, economic and national security goals, but current policy does not adequately address the status and risks involved with the technology, according to a report released late last week by the Brookings Institution. “Fundamentally, current policy is not fostering CCS technology commercialization or creating markets for CCS technology,” the report says.
The U.S. government has supported CCS development for nearly two decades in the form of a robust research and development program and early-stage financial support for demonstration projects. “Commercializing CCS is not a technology challenge—rather, policies are needed that spur further development of integrated projects at scale,” according to the report.
There are several key problems with the current policy approach to CCS, according to the report. The current system provides insufficient support for large-scale demonstrations and inadequate financial incentives. Further, there is currently a “lack of policies that establish sizeable markets for CCS technology,” the report says.
The report makes several recommendations to better address CCS in the nation’s policy framework. “This is a complex public policy issue: A CCS policy approach needs to accomplish multiple strategic national and international objectives and address existing risks and goals in a timely and comprehensive manner,” the report says.
Among these recommended changes include developing a dedicated CCS trust fund, modifying the existing loan guarantee program by eliminating the requirement for an appropriation to pay the credit subsidy cost and allowing those that have already received other financial support to apply, making investment tax credits refundable, offering financial support for front-end engineering and design work, and adopting a strong federal CO2 policy.
“CCS can be a viable technology to meet U.S. environmental goals, as well as yielding related economic and national security benefits. However, policymakers and the general public must be aware of what is required from a policy standpoint,” the report says.
