Contact Information: The Boston Consulting Group Eric Gregoire Global Media Relations Manager Tel +1 617 850 3783 Fax +1 617 850 3701
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
| Source: The Boston Consulting Group
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.
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