20 June 2008 00:08 [Source: ICIS news]
NEW YORK (ICIS news)--Global carbon capture policies need to change in order to meaningfully reduce carbon dioxide (CO2) emissions, a Shell executive said on Thursday.
Shell advocates the use of emissions trading as the primary incentive for low-cost carbon capture and storage (CCS), as well as incentives that bridge the “financing gap” created by the short-term nature of existing trading programmes.
“We have to bridge that gap and get through the learning-by-doing phase; that will need some special incentives. They may come from governments or they may come from other mechanisms. But they are needed if we are going to realise the potential of CCS in time,” said John Barry, vice president for unconventionals and enhanced oil recovery at Shell Exploration and Production International, on a company webcast.
CCS processes are not unknown, but their high cost has slowed implementation, said Barry.
Shell also supports a clear regulatory framework to manage any environmental and health risks, and international and national laws to recognise and permit CCS operations, with amendments to existing law where required, he said.
“We will need legal frameworks which talk about ownership of the subsurface, how you can get a permit to dispose of the CO2, and long-term liabilities,” said Barry.
Barry cited the EU’s Draft Directive published this year as a good example to follow.
“Not yet enacted as a law, as it were, but I think it contains many of the sorts of elements that would be needed to make [CCS] take off,” he said.
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