CARBON CAPTURE AND STORAGE: A NECESSITY NOT AN OPTION
PAUL A T DAVIES
Why is major investment in Carbon Capture and Storage (CCS) recommended by the Intergovernmental Panel on Climate Change (IPCC) and the UK’s Committee on Climate Change (CCC) as “a necessity, not an option”?
This paper summarises the need for CCS investment as an important part of the UK achieving ‘Net Zero’ by 2050.
CARBON PRICING & INFRASTRUCTURE INVESTMENT
The introduction of explicit carbon pricing is the recommended policy of the Climate Change Committee, the UN Intergovernmental Panel on Climate Change, and is the stated long-term UK Government policy, who have already committed to introducing a UK Emissions Trading Scheme (UK ETS), which will put a decreasing cap on allowable CO2 emissions, leading to a ‘carbon price’ for available allowances.
This paper reviews the arguments for carbon pricing, but then sets it alongside the need for infrastructure investment and Government policy, which the 10 Point Plan has gone a long way to initiate and address. It describes how a carbon tax can help deliver and fund infrastructure and in turn how infrastructure investment can lower the need for, and size of, carbon tax.
IDEAS AND POLICY ADVICE
BEIS CONSULTATION ON THE RAB MODEL FOR NUCLEAR
RESPONSE FROM THE INFRASTRUCTURE FORUM
The Infrastructure Forum's RAB Working Group has submitted its response to the BEIS Consultation on the RAB Model for Nuclear.
The Working Group, comprised of experts in infrastructure finance with particular knowledge of the RAB model, UK regulatory framework and delivery of greenfield projects, considered questions posed by the consultation on the structuring of the model as well as broader Critical Success Factors necessary for setting up an investable nuclear RAB.
Particular focus was given to: the incentive mechanisms which facilitate the delivery of Value for Money for consumers, investors, the project developer and Government; ensuring a robust and credible Economic Regulatory Regime; the investability of the model; importance of a sustainable supply chain; and political support for a UK new nuclear programme.