Wednesday, March 3, 2010

New Report Sets Out What European Union Must Do To Encourage Take Up of Carbon Capture and Sequestration

The European Union, which has enacted legislation mandating a reduction (across the whole of the EU) of greenhouse gas emissions by 20 percent by 2020 based on 1990 levels, must invest more public money for developing carbon capture and sequestration (CCS) projects as well as implement "strong market signals" to "ensure mass deployment of the technology," according to a new study by a leading EU think-tank.

In "Carbon Capture and Storage: What the EU Needs to Do," the Centre for European Reform in London sets out several key activities that the EU must undertake if it is to have 12 large CCS demonstration projects operating by 2015.

In a broader context, the EU finds itself in an increasingly difficult position. It has adopted strong legislation aimed at achieving its GHG reduction targets. But thus far, despite the leadership it has tried to provide at an international level it is moving along mostly in the absence of any large partners (for example, China, India, the U.S.).

Have the Europeans made a huge strategic mistake that will hinder economic development? Or will their first mover approach pay dividends in a world that will adopt EU-based solutions? Difficult questions to be sure. Only time will tell.

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