Thursday, September 01, 2022

No Climate Magic Bullet

 Despite being a technology still in development stages, carbon capture and storage has been put forward as a key element in the plans to reach net zero carbon emissions by 2050. Carbon capture and storage schemes, a key plank of many governments’ net zero plans, “is not a climate solution”, the author of a major new report on the technology has said.

Researchers for the Institute for Energy Economics and Financial Analysis (IEEFA) found underperforming carbon capture projects considerably outnumbered successful ones by large margins.

Of the 13 projects examined for the study – accounting for about 55% of the world’s current operational capacity – seven underperformed, two failed and one was mothballed, the report found.

“Many international bodies and national government are relying on carbon capture in the fossil fuel sector to get to net zero, and it simply won’t work,” Bruce Robertson, the author of the IEEFA report, said. "Although there is some indication it might have a role to play in hard-to-abate sectors such as cement, fertilisers and steel, overall results indicate a financial, technical and emissions-reduction framework that continues to overstate and underperform,” Robertson said. 

However, he added: “As a solution to tackling catastrophic rising emissions in its current framework, CCS is not a climate solution.”

Meanwhile, despite the huge profits of fossil fuel companies, global public subsidies for fossil fuels almost doubled to $700bn in 2021.

The subsidies soared as governments sought to shield citizens from surging energy prices as the global economy rebounded from the Covid-19 pandemic.

Most of the subsidies were used to reduce the price paid by consumers. This largely benefits wealthier households, as they use the most energy, rather than targeting those on low incomes. The subsidies are expected to rise even further in 2022 as Russia’s war in Ukraine has driven energy prices even higher.

“Fossil fuel subsidies are a roadblock to a more sustainable future, but the difficulty that governments face in removing them is underscored at times of high and volatile fuel prices,” said Fatih Birol, the director of the International Energy Agency, which produced the analysis with the OECD. “A surge in investment in clean energy technologies and infrastructure is the only lasting solution to today’s global energy crisis and the best way to reduce the exposure of consumers to high fuel costs.” 

“Significant increases in fossil fuel subsidies encourage wasteful consumption, while not necessarily reaching low-income households,” said Mathias Cormann, the OECD secretary general.

“A period of soaring fossil fuel energy prices, when oil and gas companies are posting record-breaking profits, should be the ideal time for governments to eliminate fossil fuel production subsidies – so to see rising government support for fossil fuels now is infuriating,” said Gyorgy Dallos, at Greenpeace International. “Governments need to stick to their green pledges. On the consumer side, they urgently need to replace untargeted support measures with targeted income support to people experiencing fuel poverty.”

The analysis covers 51 key countries and represents 85% of the world’s total energy supply. Subsidies that kept fossil fuel prices artificially low more than tripled to $531bn in 2021, compared with 2020. Subsidies for oil and gas production reached a record level of $64bn. The $697bn total covers explicit subsidies, including price reductions, government funding and tax breaks. Estimates including implicit subsidies, ie the cost of the climate and air pollution damage caused by fossil fuels, are far higher. These amounted to $5.9tn in 2020, according to the International Monetary Fund, or $11m a minute.

Carbon capture is not a solution to net zero emissions plans, report says | Carbon capture and storage (CCS) | The Guardian

Global fossil fuel subsidies almost doubled in 2021, analysis finds | Fossil fuels | The Guardian

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