UK Carbon Capture And Storage Projects: Progress At Last?
Mondaq Business Briefing › United Kingdom Law Articles in English (2010)
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UK Carbon Capture And Storage Projects: Progress At Last?
Introduction
Doubts about the technical feasibility of carbon capture and storage (CCS) remain, but the United Kingdom has recently taken two concrete steps towards exploring CCS potential: CCS provisions in the proposed Energy Bill and the award of funds for developing technical plans for CCS demonstration plants. These have occurred in the context of a growing regulatory support framework for CCS in both the UK and the European Union. Energy Bill – the 'CCS incentive' The Energy Bill currently before the UK Parliament is part of the UK's low carbon transition plan for meeting its obligation to reduce carbon emissions 34% from 1990 levels by 2020 under the UK Climate Change Act 2008. If enacted the Energy Bill will implement a 'CCS incentive' to support the construction of up to four commercially viable CCS demonstration projects in the UK. The Energy Bill also provides for funding to retrofit additional CCS capacity to the demonstration projects if subsequently required. The Energy Bill creates a framework for a financial incentive mechanism to support CCS demonstration projects. It empowers the Secretary of State to provide financial assistance for CCS demonstration projects directly, or to establish alternative 'assistance schemes' to be monitored and administered by others. Amongst other things the assistance schemes will be able to define what can be done under a CCS project, and how much assistance can be provided. The Energy Bill also provides for an electricity supply l...See the full content of this document
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