Climate Targets And Financial Challenges In The Global South: The Case Of Carbon Capture And Storage

Abstract

Carbon Capture and Storage (CCS) is a key technology that holds the potential
to contribute to a sustainable future. As per the name, CCS is a process of
capturing carbon dioxide (CO2) from stationary sources of carbon emissions
and permanently storing it, or capturing atmospheric CO2, either directly from
the air (hereafter referred to as direct air capture, “DAC”) or from a point
source (like a large fossil fuel-powered thermal power plant), and then injecting
it in the subsurface for storage. This description highlights CCS’s capacity to
operate as a viable mechanism for cutting down emissions in industrial sectors
generally, and in hard-to-abate sectors particularly. In light of this, CCS
technologies have the potential to contribute as an important tool to meet
climate objectives in a variety of ways, and to become a key alternative for the
decarbonization of industries across the globe. Notwithstanding this, the
scalability and widespread adoption of CCS is inhibited by its associated costs.
This paper investigates the relationship between climate change and CCS, and
considers whether there is a role for CCS in the global climate agenda. The
paper further pinpoints the financial challenges to the successful
implementation of CCS particularly for developing and least-developed
countries.