16.12.2024
A CCS Bank for Europe
CCS deployment is too slow in Europe.
It puts the EU’s industrial competitiveness and industrial decarbonization at risk.
IOGP Europe proposes the establishment of a CCS Bank - a CCfD auctioning mechanism to incentivize CO2 capture and, by extension, the development of CCS value chain projects.
4 objectives of a European CCS Bank:
- Provide a transparent, market-based instrument to support cost-efficient CCS projects.
- De-risk capture projects by improving financial predictability and incentivizing investment.
- Encourage price discovery and market formation for the carbon capture and storage sector.
- Reduce the administrative burden for developers, streamlining the process of securing financial support.
Policy Recommendations for Accelerating CCS Deployment:
- Establish the CCS Bank as a competitive auctioning mechanism to provide cost-effective support to CCS projects.
- Integrate the CCS Bank with the EU’s Innovation Fund to unlock private sector investment and accelerate deployment.
- Ensure payments are tied to verified CO₂ capture and storage to incentivize accountability and cost efficiency.
The European CCS Bank offers a game-changing opportunity to accelerate CCS deployment, reduce industrial emissions, and safeguard Europe’s competitiveness in the global market. If Europe is to meet its climate goals and industrial decarbonization targets, urgent action and a clear financial mechanism like the CCS Bank are essential.