Roadmap for Carbon Capture and Storage Demonstration and Deployment in the People’s Republic of China

In the People’s Republic of China (PRC), carbon dioxide (CO₂) emissions have risen in tandem with its rapid economic growth for the past three decades due to its carbon-intensive coal dominated energy mix. Consistent with its aim to peak out CO₂ emissions by 2030, the Government of the PRC is implementing strong measures to transform its energy to a low-carbon mix.

Many studies have highlighted carbon capture and storage (CCS) as an essential part of a portfolio of technologies that are required to achieve cost-effective long-term CO₂ mitigation. Yet many perceived and real risks and barriers are delaying CCS demonstration and deployment, risking the attainment of CO₂ mitigation objectives. But at present CCS is the only near-commercial technology that allow to make deep cuts (up to 90%) in CO₂ emissions from fossil fuel related power plants and industries.

Highlights

This report is an assessment of the potential, the barriers, and the challenges in demonstrating and deploying CCS in the PRC. It identifies unique low cost opportunities, recommends a gradual two phase approach to CCS deployment in the country and, provides complementary suite of policy actions to enable it.

Among the report's key messages are the following:

• CCS demonstration and deployment is essential for cost-effective climate change mitigation;
• The PRC can benefit from international experiences;
• Unique low-cost CCS demonstration opportunities exist in the PRC;
• CCS demonstration faces formidable challenges in the absence of targeted support;
• Current low oil prices may have temporarily reduced incentives for CO₂; and
• A phased approach to CCS demonstration and deployment is needed.