Designing policy for deployment of CCS in industry
Attaining deep greenhouse gas (GHG) emission reductions in industry in order to support a stringent climate change control target will be difficult without recourse to CO<sub>2</sub> capture and storage (CCS). Using the insights from a long-term bottom-up energy systems model, and undertaking a sectoral assessment, we investigated the importance of CCS in the industrial sector. Under climate policy aimed at limiting atmospheric concentration of GHGs to 650 ppm CO<sub>2</sub>e, costs could increase fivefold when CCS is excluded from the portfolio of mitigation option measures in the industry sector as compared to when CCS is excluded in the power sector. This effect is driven largely by the lack of alternatives for deep emission reductions in industry. Our main policy conclusion is that a broader recognition of CCS in industrial applications in both current policy discussions and research, development, and demonstration funding programmes is justified. In recognition of the heterogeneity of the many types of industrial production processes, the size and location of industrial CO<sub>2</sub> sources, the specific need for CCS-retrofitting, and the exposure of most industrial sectors to international trade, policies aimed at supporting CCS must distinguish between the different challenges faced by the power and industrial sectors.
