CCS a bitter necessity for robust climate policy

Carbon Capture & Storage (CCS) is a key way to reduce industrial CO2 emissions fast and at limited cost. It is not the first measure industry is planning to take, however. From the perspective of the large-scale energy user, i.e. carbon emitter, the very first step will be to improve the efficiency of industrial processes, as there are plenty of technologies available to pluck both the ‘low-hanging fruit’ as well as modernize processes to secure substantial carbon cuts. Eventually, though, CCS will be relevant – at a CO2 price of around € 50 per tonne or more. It is a lot cheaper than most forms of renewable energy. If industrial energy consumers are to become (largely) climate-neutral, CCS is indispensable. It is also the only way fossil fuel companies can capitalize on their stocks under a robust climate policy regime. For the Netherlands this means the fossil energy sector has an economic interest in making CCS technology ripe for the market.