Public/Private Collaboration Key to Unlocking Australia’s CCS Potential
Carbon capture and storage (CCS) has the potential to significantly reduce greenhouse gas emissions and play a crucial role in the global transition to net zero by 2050. Australia, with its abundant geological storage potential and proximity to high-emitting countries, has the opportunity to be a world leader in CCS. However, the country’s CCS industry is currently facing challenges in terms of policy and funding. To reinvigorate CCS in Australia, the government can learn from successful initiatives in the US, the UK, and the EU, and promote public-private collaboration.
What is CCS and why is it important for Australia’s transition to net zero? CCS involves capturing carbon dioxide, transporting it to a storage location, and permanently storing it underground. There are three main categories of CCS projects: direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), and point source carbon capture and storage. Independent organizations have consistently shown that CCS is essential to achieve global net-zero targets by 2050. Additionally, CCS can play a crucial role in Australia’s energy and resources sector by reducing carbon emissions.
The Federal Government’s position on CCS is mixed. Australia currently lacks a national CCS strategy or specific policies to encourage the development of the industry. The Australian Labor Party (ALP) recently downplayed the role of CCS in the country’s energy transition. Furthermore, there has been a reduction in federal funding for CCS programs. Despite these challenges, the private sector is taking the lead in developing CCS projects in Australia.
Australia can learn from other countries’ successful initiatives in CCS. The US is at the forefront of CCS project development and has introduced federal tax credits and funding programs to support CCS projects. The UK has released the “CCUS Net Zero Investment Roadmap,” which outlines the development of CCS hubs and DACCS capacity. The UK also has a licensing and regulatory regime to support the CCS industry. The EU has established the Innovation Fund to support CCS projects and other clean energy technologies.
To unlock Australia’s CCS potential, public-private collaboration is crucial. The government should develop a national CCS strategy and provide targeted policies and funding to incentivize CCS development. Learning from successful initiatives in other countries, Australia can introduce tax credits and funding programs for CCS projects. A licensing and regulatory regime can create a supportive environment for CCS infrastructure development. Public funding institutions, such as the UK Infrastructure Bank, can be established to invest in CCS projects and support economic growth.
In conclusion, CCS is a key solution to reduce greenhouse gas emissions and achieve net-zero targets. Australia has the opportunity to become a world leader in CCS, but it requires a collaborative effort between the public and private sectors. By learning from successful initiatives in other countries and implementing targeted policies and funding, Australia can unlock its CCS potential and contribute to the global transition to net zero.
Original article: Carbon Market Institute
Original Story at www.allens.com.au – 2023-09-18 02:19:02
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