Table 2
CO2 infrastructures.
Issue | Interdependencies/antagonisms | Stakeholders | Suboptimal market equilibrium | Policy recommendations in the literature | Sources |
---|---|---|---|---|---|
1. CO2 transportation infrastructure deployment | Carbon capture, transport, and storage are complementary markets and face a typical “chicken and egg” dilemma: What comes first, the infrastructure or the capture technology? |
|
Barriers to investment, both in carbon capture technologies and CO2 infrastructures | Public support and subsidies to reduce risk and improve investor confidence | [18, 36, 56, 60, 61, 86] |
CO2 transportation infrastructures are subject to economies of scale |
|
If there is no international coordination, CO2 infrastructure will not benefit as much from economies of scale | International coordination of CO2 infrastructure deployment | [83, 87] | |
The optimal infrastructure deployment also depends on uncertain future demand for carbon capture (building ahead of demand) |
|
Additional costs are borne by the infrastructure operators for an oversized infrastructure, making the technology less competitive in the initial stages | Polluter pays: spreading the costs of the infrastructure overall fossil-fueled power generators through a carbon tax or CCS obligation certificates | [18] | |
There are political risks related to the lengthy time needed to develop a CCS project: The availability of funds by the time the project is ready for the final investment is uncertain |
|
Barriers to investment | Contract for Differences (CfD) allocation process | [18] | |
Investment in CCS infrastructures has been mostly financed by fossil-fueled industries |
|
BECCS lock-out: BECCS projects could be de facto precluded by a CCS transportation design that does not anticipate their participation |
|
[63, 64] | |
2. CO2 storage infrastructure deployment | Post-decommissioning CO2 storage risk |
|
Barriers to investment | Public support and subsidies to reduce risk and improve investor confidence | [18] |
CO2 needs to be stored and monitored over generations |
|
No guarantee that future generations will continue to monitor the storage site | Monitoring, reporting, and verification (MRV) mechanisms | [20] |
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