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

Carbon Capture and Storage in Developing Countries: A Perspective on Barriers to DeploymentCarbon Capture and Storage (CCS) could have significant impact as a carbon mitigation technology in greenhouse gas emitting industries.

Given the nascence of CCS technology, with only eight large-scale integrated projects in the world, there are still significant challenges that must be overcome for large scale deployment. These include addressing technical issues of integration and scale up, legal and regulatory requirements to reduce investor risk, policies to create market drivers and mitigate economic impacts including increases in electricity prices, and financing mechanisms to facilitate investment in CCS technology.

This report assesses some of the most important barriers facing CCS deployment within the context of developing and transition economies.

» Download the Report (PDF, 3.3MB) 

FOREWORD |

Many scientists and analysts identify carbon capture and storage (CCS) technologies as potentially capable of making a significant contribution to meeting global greenhouse gas mitigation objectives. CCS technology could provide a technological bridge for achieving near to midterm greenhouse gas (GHG) emission reduction goals. The integrated CCS technology is still under development and has noteworthy challenges, which would be possible to overcome through the implementation of large scale demonstration projects. Several governments, noticeably among industrialized countries, are currently undertaking efforts aimed at advancing the deployment of CCS technologies in the industrial and power generation sectors. However, before the technology can be deployed in industries in developing countries and countries in transition, substantial efforts should be carried out to exchange knowledge to understand all aspects of CCS to reduce investor risk, and help design policies to mitigate economic impacts including increases in electricity prices, and financing mechanisms to facilitate investment in the technology use.

The World Bank Group (WBG) has been engaged in providing assistance to its partner countries on carbon capture capacity building since the establishment of the World Bank Multi-Donor CCS Capacity Building Trust Fund (WB CCS TF) in December 2009. The government of Norway and the Global Carbon Capture and Storage Institute are the two donors of the WB CCS TF at present. The objectives of the WB CCS TF are to support strengthening capacity and knowledge sharing, to create opportunities for WBG partner countries to explore CCS potential, and to facilitate the inclusion of CCS options into low-carbon growth strategies and policies developed by national institutions.

In order to assist our partner countries better, there is a need to start analyzing various numerous challenges facing CCS within the economic and legal context of developing countries and countries in transition. The present report is the first effort of the WBG to contribute to a deeper understanding of (i) the integration of power generation and CCS technologies, as well as their costs; (ii) regulatory barriers to the deployment of CCS; and (iii) global financing requirements for CCS and applicable project finance structures involving instruments of multilateral development institutions.

We expect that this report will provide insights for policy makers, stakeholders, private financiers, and donors in meeting the challenges of the deployment of climate change mitigation technologies —and CCS in particular.

Lucio Monari
Sector Manager, Sustainable Energy Department, The World Bank

» Download the Report (PDF, 3.3MB)

MODELS |

Techno-Economic Model (Chapter 3)

The Model for Energy Supply Strategy Alternatives and Their General Environmental Impact (MESSAGE) was selected to be used for this study. The input files for the model can be downloaded at the link below. 

To run the model with the files, users must have MESSAGE software. This can be obtained from the International Atomic Energy Agency (IAEA) and is provided free of charge to member countries of the IAEA. 


Financial Model (Chapter 6)

This CCS Model was developed to assess the impact of different financing structures (and other technical parameters) on the overall costs and revenues of power generation projects. Using a Levelized Cost of Electricity (LCOE) methodology, the model also estimates the impact of adding CCS related expenses and revenues on electricity rates. Under certain assumptions, the model can provide useful information to determine financial feasibility of a power plant that could be equipped with CCS facilities.

This model was used for the report ‘Carbon Capture and Storage in developing countries: a perspective on barriers to deployment’ and can be downloaded, and inputs edited, as the user desires. A user’s manual is also available to download.

BACKGROUND REPORTS  |

Chapter 3 - Techno-economic assessment of Carbon Capture and Storage Deployment in the Power Sector in the Southern African and Balkan Regions

Chapter 4 - Addressing the Legal and Regulatory Barriers

Chapter 5 - The Role of Climate Finance Sources in Accelerating Carbon Capture and Storage Demonstration and Deployment


Last updated: 2011-11-14




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