Carbon Capture and Storage in Developing Countries : A Perspective on Barriers to Deployment

Kulichenko, Natalia ; Ereira, Eleanor

Washington, DC: World Bank

关键词: Carbon capture;    Carbon price;    Climate Financing;    Enhanced oil recovery;    Legal framework;   

DOI  :  10.1596/978-0-8213-9609-4
RP-ID  :  70610

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This report assesses some of the mostimportant barriers facing Carbon Capture and Storage (CCS)deployment within the context of developing and transitioneconomies. The selection of the case studies is based onseveral criteria, including the level of reliance on fossilfuels for power generation and the level of interconnectionof electricity networks. The case studies selected for thisanalysis are the Balkans and Southern African regions. Manycountries within the Balkan region are considered transitioneconomies, a status recognized as different frommiddle-income and low income developing countries. However,for the purposes of this report, countries within bothregions are referred to as developing countries. The reportpresents the results of a model developed to investigateways of structuring financing for power generationfacilities equipped with CCS in the developing world, usinginstruments available from multilateral development banksand commercial financiers, as well as concessional fundingsources. The objective is to assess whether a combination ofsuch instruments could result in reductions in the overallcost of financing. The model calculates the resultingLevelized Cost of Electricity (LCOE), and includes numerousvariable parameters, such as coal prices, CO2 prices, andpotential revenues from selling oil and gas obtained throughenhanced hydrocarbon recovery. Common theme found throughoutthe analyses is that there could be potential for CCSdeployment in the regions under consideration. Lower-costopportunities, for example, in sectors practiced in handlingCO2, such as gas processing, or where extra revenues couldbe made available from enhanced hydrocarbon recovery, couldprovide platforms for the first CCS projects in developingcountries. However, broader CCS deployment is contingentupon a number of factors, including an availability of a mixof sources of finance from public funds and carbon marketmechanisms, as well as concessional financing sources. Inparallel, financing should be supported by legal andregulatory frameworks not only to define mechanisms foraccess to concessional and climate finance, but also toreduce investor risk and create market drivers to leverageall available sources of domestic and international support.