The Gulf region wants to maintain their substantial revenues from hydrocarbons in a decarbonising world. One way to do that is to invest in carbon capture, to make cleaner and more marketable fossil fuel products. Megren Almutairi and Karen Young at CGEP look at their current plans and future prospects. Right now, about 10% of CO2 captured globally is in the industrial facilities of the Gulf States. Their national oil companies boast some of the … [Read more...]
If Buildings Renovation fails, the EU ETS pricing mechanism must change
If the EU “Renovation Wave” for buildings fails, the massive ramp up of clean electrification required to compensate will come into direct conflict with EU ETS pricing formulas, say Sebastian Osorio and Michael Pahle at the Potsdam Institute for Climate Impact Research and Oliver Ruhnau at the Hertie School in Berlin. If the cap in the original ETS is too tight relative to the Effort Sharing Regulation (ESR) targets, its carbon prices may rise … [Read more...]
Calculating the effect of $50/tonne CO2 on energy prices
Despite much debate, governments are hesitant to raise – or even impose – carbon pricing, worried about the direct impact it will have on businesses and consumers.To help understand its effect Severin Borenstein at the Energy Institute at Haas has crunched the numbers of a $50/tonne CO2 price, very expensive by today’s standards. He’s calculated the actual price increases on a gallon of petrol/gasoline, gas- and coal-fired generation, and natural … [Read more...]