EU eyes $14 bln emission permits for carbon capture
The European Union is close to agreeing on a source of public funding for power stations to trap and bury carbon dioxide in the battle against climate change, lawmakers and European Commission sources said.
The European Union is close to agreeing on a source of public funding for power stations to trap and bury carbon dioxide in the battle against climate change, lawmakers and European Commission sources said.
The European Parliament member in charge of legislation on carbon capture and storage (CCS), Chris Davies, said up to 10 billion euros ($14.20 billion) could be used from a strategic reserve of emission permits to promote the emerging technology.
Companies such as Siemens are working on cutting-edge technology to trap CO2, and pump it into empty gas fields and deep underground caverns.
Carbon sequestration is seen by industry as a potential silver bullet to curb emissions from coal-fired power plants, which are multiplying rapidly in India and China, threatening to heat the atmosphere to dangerous levels.
But while the technology exists, utilities are reluctant to build CCS power plants without public funding because it adds about 1 billion euros ($1.42 billion) to the cost of each power station and reduces their output.
Some environmentalists argue CCS is unsafe and could divert investment from renewable power sources.
Others say it is a necessary evil to keep greenhouse gas emissions below levels dangerous for global warming.
The EU wants up to 12 demonstration plants by 2015, but until recently the European Commission's environment directorate had opposed the idea of using funds from its flagship Emissions Trading Scheme to support the technology.
But a European Commission source said on Wednesday the environment directorate is now looking at the possibility of granting allowances from its New Entrants Reserve, a pool of allowances set aside for new installations joining the scheme.
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Source: Reuters
