This is a presentation delivered by Stefan Bakker of the Energy Research Centre of the Netherlands, or ECN, at the Institute’s COP 17 side event, held on November 30. The presentation reviews the current CCS bilateral collaboration programs around the world and discusses the need to include CCS under bilateral offset mechanisms, as well as to develop knowledge sharing networks, etc.

1. New options for CCS in the UNFCCC
Stefan Bakker (ECN), Heleen de Coninck (ECN), Markus Hagemann (Ecofys)
Global CCS Institute side event COP17, Durban, 30 November 2011
www.ecn.nl

2. Multilateral initiatives related to CCS
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3. Bilateral partnerships on CCS
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4. What issues do they address?
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5. What are they not covering?
• Technology: mostly power sector; industrial,
upstream and biomass-CCS hardly included
• Regulatory framework – only general studies
• Project financing – only R&D supported
• Public acceptance – no local communication
strategies
• Limited geographical focus of partnerships
- Mostly related to China
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6. Interest in CCS in developing countries?
• Enhanced oil recovery (e.g. OPEC)
• Contribution to GHG reduction (e.g. South Korea,
South Africa, China)
• Development of knowledge and technology
• Early opportunities, e.g. Natural gas processing
(e.g. Indonesia)
• NAMA submissions (Ghana, Botswana)
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7. Which CCS options to finance?
7 1-12-2011 CCS MAC for developing countries
(Bakker et al., 2011)

8. Nationally appropriate mitigation actions
• Action that reduces GHG below BAU, in the
context of sustainable development
• (Unilateral) – supported – (credited)
• Current bilateral initiatives could be scaled up:
- Non-Annex I countries count CCS under
voluntary emission reduction contributions
- Annex I countries contribute under fast start
financing
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9. Bilateral offset mechanisms
• CCS in CDM could pave way for crediting of CCS
projects
• Alternatives to CDM being developed, e.g. by
Japan
• CCS in principle quite suitable for crediting: easy
to prove additionality
• Other issues such as liability, site characterisation
etc could be taken from CCS-CDM modalities and
procedures
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10. Climate Technology Centre and Network
for CCS
• Secretariat + innovation centre in a developing country
• Virtual knowledge and learning forums
• Regional and global implementation and collaboration
networks
• Functions for CCS:
- Addressing open issues and provide common voice for roll-out
- Increase knowledge and capacity for experts and policymakers
- Identify financing sources for demonstration
- Involve private sector and local community
- Set internationally accepted standards for CCS storage sites
- Create international information campaigns on CCS
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11. Specific fund for CCS demonstration
• Current financing mechanism (WB, GEF, CTF,
CDM etc) do not provide sufficient resources
- Additional $ 5 - 17 billion is needed by 2020
• CCS fund could provide incentives for early
demonstration projects in different sectors in
developing countries
- Financing of incremental cost (investment,
operational)
Based on: WRI (2011)
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12. Conclusions
• Demonstration of CCS in power, industry and up
stream sectors is required by 2020
• Current international initiatives and financing
mechanisms lack focus on financing of full scale
projects
• New mechanisms under the UNFCCC can play a
role
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