SOURCE: The Boston Consulting Group

July 01, 2008 00:01 ET

Carbon Capture and Storage Is a Feasible Solution for Mitigating Global Warming, Says a Report by The Boston Consulting Group

A Stable Carbon-Trading Market and Initial Government Subsidies Will Offset the EUR 500 Billion Cost by 2030

BOSTON, MA--(Marketwire - July 1, 2008) - Carbon capture and storage (CCS) has the potential to reduce one-third of the total global emissions of carbon dioxide from stationary sources, according to a new report by The Boston Consulting Group (BCG). The report, titled "Carbon Capture and Storage: A Solution to the Problem of Carbon Emissions," is being released today.

The report summarizes findings from BCG's extensive analysis of global sources of carbon dioxide and the costs and benefits of CCS technology. This analysis determined that if the 1,000 largest fossil-fuel-burning power generators and industrial manufacturing facilities -- stationary, single-point sources -- implemented CCS by 2030, more than one-third of the estimated total global emissions would be reduced.

Ramón Baeza, a BCG senior partner and coauthor of the report, said, "CCS technology offers substantial benefits, but high cost and uncertainty have been a major roadblock so far in applying it. A carbon market price of EUR 30 per ton, combined with worldwide subsidies, could offset the cost. Because of the long-term payback, private companies and government authorities need to begin promoting the development of CCS today."

Current Efforts Are Necessary but Not Sufficient

Most efforts so far to mitigate global warming have focused on improving energy efficiency or deploying renewable or alternative forms of energy. Although both are necessary, these efforts are not likely to be sufficient to contain increasing global carbon emissions. If, as most experts agree, CCS can reduce stationary plant emissions by 90 percent, it may be possible to upgrade rather than shut down these facilities.

The uncertainty and volatility of carbon prices in a carbon-trading market are disincentives to developing CCS fast enough to respond to the emission reduction challenges established by the European Commission and other world bodies. However, the technology would pay for itself at a stable carbon price of EUR 30 per ton. An initial subsidy of EUR 100 billion during the ramp-up time would enable development to proceed as the carbon price stabilized.

To receive a copy of the report or arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.

About The Boston Consulting Group

The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more information, please visit www.bcg.com.

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