Manage Multiple Policy Instruments in Financing CCUS Case Study of Guangdong

Abstract

CCUS plays a substantial role in mitigating global emissions alongside measures such as renewable energy and energy efficiency. Resulting from this, an opportunity is created for governments to formulate effective policies for CCUS implementation, as the necessary policies that allow for achieving the “well below 2°C” goal will be adopted. The report starts with the study of the status of global CCS project activities across key regions, especially the activities in China; and followed with a review of the existing policy instruments that support the deployment and R&D of carbon capture, utilisation and storage technologies (CCUS) in China. Afterwards, based on a case study of estimating the cost of steel plant CCUS project in Guangdong, this report proposes the potential for applying multiple policies and measures to support CCUS development and project demonstration. Advance appropriate funding mechanisms should be identified to support the large-scale CCUS demonstration projects.

Keywords: Policy approaches, GHGT-14, Carbon Capture, Utilisation and Storage; financial incentive; policy; China