The role of CCS in reaching a low-carbon society
CCS – Carbon Capture and Storage - may be important whether policies aim for the two-degree target or the 1.5 degree target. However, the technology has been implemented only to a very limited extent. There is consequently a need for research to understand why the technology has not been implemented and how policy instruments can be optimally designed to target this technology. How do we value the benefits of CCS such as learning effects, CO2 reductions and the option of storage? What are the market imperfections in the three markets (capture, transport, storage) and how can policies be designed to target these imperfections? Can CCS be economically profitable without government support? What will the consequences for Norwegian industry (including oil and gas) be with and without CCS, given that we aim for the two-degree target?