Purpose
The Carbon Capture and Storage (CCS) is included as an integral part of all climate change mitigation strategies proposed by the Intergovernmental Panel on Climate Change and International Energy Agency (IEA). But overcoming perceived and real risks, higher costs and financing barriers and, low public acceptance is proving difficult and time consuming resulting in slower progress on CCS. While there are multiple challenges in launching CCS demonstration projects in developing countries, the higher capital cost combined with significantly high "energy penalty" is often cited as a key barrier by the potential CCS developers and investors in these countries. The "economic/financial gaps" for CCS, which are already well documented, are critical bottlenecks and primary reasons for slow (or stalled) progress for CCS development in these countries.
The CSLF Financing Issue Task Force requested Asian Development Bank (ADB) to look into these issues and gaps. Based on extensive data from the People’s Republic of China (PRC) and further analysis, ADB submitted a draft report with recommendations to the CSLF in its annual meeting at Warsaw, Poland. The draft report identified the urgent need to set up a CCS dedicated multilateral funding mechanism to provide capital cost subsidies and incentives for CCS demonstration in developing countries at least until 2020. Success in early demonstration projects can bring down the costs and provide valuable in-country lessons that may guide developing countries in formulating appropriate policies and programs for CCS beyond 2020 thereby accelerating its wider deployment.
The proposed CCS Financing Roundtable will discuss the ADB report and recommendations and other relevant issues with broader industry, financial community and stakeholders.
Objectives
The CCS financing roundtable will discuss ADB report and its recommendations to further refine and improve them. It will also try to capture critical trigger points that may allow private investment to flow in the CCS projects.
Expected Outputs
After the roundtable discussion, we will be able to (i) have identified innovative financing approaches and low cost financing for CCS; (ii) identify actions that will allow private investments to flow for next set of CCS projects.
Target Participants
Experts from relevant DMCs, including stakeholders from International Commercial and Financial Institutions, carbon and clean energy investment funds, project developers and service providers, and development partners and other international organizations.
The ADB-CSLF: Financing CCS Roundtable is jointly organized by ADB and the Carbon Sequestration Leadership Forum Secretariat.
