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EU CCS Financing Overview

The European Union is also taking steps to make CCS an integral part of their energy policy with the European Commission adopting a new energy strategy in January of 2007. In the report, Europe’s reliance on oil, coal and gas is discussed and a movement to a low carbon energy model will be one of the greatest challenges in the next century. The objectives that have been set for 2020 include a 20% GHG reduction compared with that of 1990, a 20% reduction in primary energy consumption and 20% share of renewables in the energy mix. The 2007 council also recommends developing low-CO2 power generation from fossil fuels by 2020. In January of 2008 the European Commission adopted this set of proposals as well as the CCS Directive.

Overview of the EU’s Policy Framework

1) ETS Directive 2009-This directive, which took effect in June of 2009, amends the original version of the EU’s Trading Scheme in an effort to expand the effort. An additional 300 million allowances were issued to finance renewable technologies and CCS installations.

2) CCS Directive 2009-A carbon capture readiness policy which requires that the construction of any new combustion power plants generating over 300 MWe need to be built to be capture ready.

3) European Energy Recovery Program-designated for CCS demonstration projects. By the end of 2009, six projects had been selected to receive recovery funds. These are outlined below as seen in the December issue of the EU Energy Law Newsletter.

 

Date Modified April 3, 2012

 

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