Chris Littlecott CCS Dialogue Presentation 090908
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This document summarizes an introductory presentation given at a stakeholder dialogue on accelerating commercialization of carbon capture and storage (CCS) in the UK. The presentation outlines why the UK may be well positioned to deliver CCS, discusses different stakeholder interests in terms of investor and climate confidence, and poses questions to guide discussion. Key points include the UK's technical and political advantages for CCS, a framework for understanding stakeholder positions, and identifying criteria for a successful CCS policy. The goal of the dialogue is to improve understanding and enable stakeholders to identify policy measures that can accelerate CCS investment and emissions reductions.
Chris Littlecott CCS Dialogue Presentation 090908
- 1. UK CCS Dialogue A structured cross-sectoral stakeholder dialogue to accelerate the commercialisation of CCS in the UK and beyond Introductory presentation Chris Littlecott, Green Alliance London, 10th September 2009
- 2. About Green Alliance Independent charity: our purpose is to make the environment a priority in British politics. Hybrid thinktank-NGO: policy thinking combined with political engagement, and strong relationships with business and the wider third sector. Very active on CCS in both UK and EU: supportive of public financing and the identification of a policy framework that can deliver for all stakeholders. Believe that there are shared interests that make this possible – this dialogue will see if that is true.
- 3. About this presentation Three main topics: 1. Why are we positive about the UK’s chances of delivering CCS? 2. A simple framework to guide thinking about different stakeholder interests 3. Some key questions to help shape the dialogue These are personal thoughts based on our experience.
- 4. Why might the UK be best placed to deliver CCS in the EU? “the UK is the EU member state best placed to implement a coherent package of financing and regulation to drive CCS commercialisation. Such action in the UK could catalyse progress in other EU member states and have international influence ahead of the Copenhagen UN negotiations.” Why are we so positive, given slow progress over recent years? The Advisory Committee on Carbon Abatement Technologies says the creation of a UK CCS industry is possible because we have: “world leading experts in the key areas, an established engineering and scientific base, a selection of available and known storage sites, an industrial and commercial base that wants this to happen and an urgent domestic need for investment in CCS.” True, but not enough…
- 5. Three more ‘political’ reasons 1. Politics and Diplomacy – both major political parties positive about CCS and committed to supporting it, while UK civil service extremely active internationally in support of CCS. 2. Positive NGO engagement – highly successful climate campaign against new unabated coal (and increasingly also existing plant), but UK NGOs have been willing to engage on CCS in a way that hasn’t yet happened elsewhere in the EU. 3. The debate about public acceptability is still yet to happen – faster moving projects in Germany and Netherlands are now frustrated by public opposition to CO2 transport and storage. There is time to shape the UK public acceptability debate before projects proceed.
- 6. And three related opportunities 1. Can stakeholders help construct a cross-party consensus on CCS that can secure a stable policy framework going forward? 2. Can the desire for action against carbon emissions be channelled into support for CCS – from the climate movement and the general public? 3. Can we jointly ensure that the public acceptability debate occurs positively, when at last it does arrive? All of these are connected. The closer we get to a shared view among all stakeholders, the easier it will be to answer ‘yes’ to each one.
- 7. Unlocking a shared understanding: this UK CCS dialogue At present, the key UK stakeholders from the power sector, CCS industry, institutional investors, regulators, and environmental groups lack a shared understanding of a way forward for CCS policy. This is reflected in ongoing campaigns against new coal power stations, creating additional investment risks. Unless addressed now, public acceptability concerns about CCS could stymie even an improved policy framework. As a response to this situation, Green Alliance and the Carbon Capture and Storage Association have decided to convene a structured stakeholder dialogue. Our aims are to: 1. improve cross-sectoral understanding, and 2. enable stakeholders to identify the core measures required in a stable policy framework that can accelerate the commercialisation of CCS by driving CCS investment and the reduction of carbon emissions.
- 8. A framework for dialogue: ‘Confidence’ ‘Confidence’ has been a recurring theme in the conversations we have had with stakeholders over the last year: • Is there a business case for new power stations? • Can equipment providers scale up production? • Will emissions actually be reduced? • Does the power sector need to be decarbonised by 2030? Some concerns are about a lack of confidence in specific CCS projects (their delivery / perceived climate benefits), while others are about the broader policy framework (will it lead to CCS deployment / the decarbonisation of the power sector?)
- 9. Two key variables We can group most stakeholder concerns into two broad categories: • ‘Investor Confidence’ • ‘Climate Confidence’ Both are concerned with the outcomes from any UK policy framework for CCS, and incorporate issues such as the level of regulatory certainty, the provision of financial support, and the resulting carbon emissions from any projects permitted going forward. They are also important motivations for policy makers and regulators relevant to achieving their desired policy outcomes in a context of tight public budgets.
- 10. A framework to guide discussion Scenarios ‘Climate Confidence’ Confidence’ Low High Low ? ? ‘Investor Confidence’ Confidence’ High ? ?
- 11. Low I + Low C = Shared Frustration Potential Outcome: • Few CCS projects come forward. Perhaps only the one in the UK competition – but will it get built? • Unabated gas plant construction continues or intensifies. • No industry scale up or infrastructure development. • Climate campaigners stay active against new and old coal, increasingly also focussing on gas. • No strategy to decarbonise power sector. = CCS sidelined
- 12. Low I + High C = Passive Opposition Potential Outcome: • Few CCS projects come forward, only if they can meet strict climate criteria. Potentially different approach than current UK competition. • Unabated gas plant construction continues, but capture-readiness requirements raise doubts. • No industry scale up or infrastructure development. • This outcome appears to be a domestic climate policy victory – but can it have international influence? • If there is a strategy for decarbonising the power sector, climate campaigners could be less active on CCS, but may need to move on to tackling emissions from gas plant if not. = CCS difficult
- 13. High I + Low C = Active Opposition Potential Outcome: • Range of CCS projects come forward, including plants with substantially unabated capacity. • No clear climate benefits from projects and lack of clarity on power sector decarbonisation. • Means active campaigning against high-emitting sources, including direct action and legal delays against CCS projects and pipelines, and public acceptability concerns highly visible (Daily Mail campaign?). • Industry scale up not likely, infrastructure development very difficult. = CCS as controversial
- 14. High I + High C = Catalytic Cooperation Potential Outcome: • Range of CCS projects come forward for coal, gas, and potentially industrial / refinery projects, demonstrating clear emissions reductions and as part of a wider power sector decarbonisation strategy. • Rapid industry scale up and infrastructure development possible. • Some limited opposition to CCS remains, but NGOs active in working with industry to address safety and environmental concerns, and engage positively in public acceptability debates. • UK seen as leader within EU and internationally, and stakeholder relationships recognised as important factor. = CCS delivering
- 15. Questions for discussion #1 1. Does this characterisation of the current CCS context resonate with your own experience? 2. Can we all agree that we should be aiming for a policy framework that provides both high investor confidence and high climate confidence? 3. Would any of the other scenario outcomes still enable you to secure your own objectives?
- 16. Questions for discussion #2 The Dialogue will seek to identify packages of policy options that can give the desired confidence for all stakeholders. But before we can identify policy options, we need shared criteria against which we can jointly assess whether they work for mutual benefit: policy? What are your personal top 5 criteria for a successful UK CCS policy? These could be related to the delivery of a specific project, your organisation, the outcomes for UK PLC as a whole, the impact on carbon emissions, or the nature of public engagement etc. The more specific, concise, strategic etc. the better e.g. “Any projects built with public funding must be of relevance for India and China and share knowledge internationally” or “Projects should receive capital grants as well as ongoing support”.
- 17. Many thanks Chris Littlecott Senior Policy Adviser Green Alliance 36 Buckingham Palace Road London SW1W 0RE Tel: +44 (0) 207 630 4516 Mob: +44 (0) 7734 910 180 clittlecott@green-alliance.org.uk skype: chrislittlecott http://www.linkedin.com/in/chrislittlecott