PNNL

Abstract

The deployment of carbon capture and sequestration (CC&S) technologies is greatly affected by the marginal cost of controlling carbon emissions (also the value of carbon, when emissions permits are traded). Emissions limits that are more stringent in the near term imply higher near-term carbon values and therefore encourage the local development and deployment of CC&S technologies. In addition, trade in emissions obligations lowers the cost of meeting any regional or global emissions limit and so affects the rate of penetration of CC&S technologies. We examine the effects of the availability of sequestration opportunities and emissions trading (either within select regions or globally) on the cost of emissions mitigation and compliance with different emissions reduction targets for the IPCC SRES scenarios. For each base scenario and emissions target, we examine the issues outlined above and present quantitative estimates for the impacts of trade and the availability of sequestration opportunities in meeting emissions limitation obligations.