The recent COP28 climate summit held in the United Arab Emirates witnessed the endorsement of carbon capture and storage as a potential solution to tackle the climate crisis. Several countries pledged their support for the development and deployment of CCS, despite the uncertainties and challenges associated with this technology. While some view CCS as a crucial component of their net-zero strategies, others remain skeptical about its feasibility and effectiveness.
Boost for CCS at COP28:
During the COP28 summit, various countries introduced new initiatives and partnerships to advance CCS:
- The United Arab Emirates (UAE), the host of the summit and a major oil producer, launched a $10 billion fund to invest in CCS and other low-carbon technologies in the Middle East and North Africa region.
- The United States, the United Kingdom, Canada, Norway, and Saudi Arabia formed the Net Zero Producers Forum, an alliance aimed at collaborating on CCS and other solutions to reduce the carbon footprint of the oil and gas sector.
- China, the world’s largest emitter and coal consumer, signed a memorandum of understanding with the Global CCS Institute to cooperate on the research, development, and demonstration of CCS projects in China.
Challenges and Risks of CCS:
While there is increasing interest and investment in CCS, several challenges and risks need to be addressed:
- Cost and Scalability: CCS is still an expensive and relatively immature technology. Currently, only 26 large-scale projects operate globally, capturing around 40 million tonnes of carbon dioxide per year. This falls significantly short of the Paris Agreement’s goal of capturing and storing about 7.6 billion tonnes of carbon dioxide per year by 2050.
- Safety and Environmental Impact: There are inherent risks associated with the transport and storage of carbon dioxide. Leaks, explosions, and contamination pose potential threats to both the environment and human health.
- Ethical and Social Considerations: Land use, water consumption, and public acceptance of CCS projects are crucial factors that need to be addressed. Disproportionate impacts on communities already affected by fossil fuel extraction and pollution raise ethical concerns.
The Future of CCS:
The role of CCS in the global fight against climate change remains uncertain and contentious. While some countries and companies believe it to be a significant component of their net-zero strategies, others remain skeptical or opposed to its development and deployment.
The outcome of COP28 reflects this ambivalence, with the final text of the summit acknowledging the potential of CCS while simultaneously calling for a phase-out of fossil fuels and a phased transition to renewable energy.
Conclusion:
Despite the endorsement of CCS at COP28, its future remains uncertain. Addressing the challenges, risks, and ethical considerations associated with this technology will be crucial in determining its role in mitigating the climate crisis.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
