Carbon Limits prepared on behalf of the World Bank and together with Rystad Energy a report assessing whether the application of CCUS on natural gas production and use could play a significant role in achieving the objectives of the Paris Agreement.
The study concludes that:
- The need for gas CCUS is a consistent finding across multiple scenarios despite strong prospects for alternative technologies,
including increased climate ambition as well as increased natural gas price assumptions.
- If CCUS is not available or not deployed to address CO2 emissions from natural gas, the cost of meeting Paris Agreement targets is estimated to increase
- If countries continue to produce and use natural gas, policymakers will need to accelerate the assessment and deployment of CCUS, if they are to achieve national and global net zero emissions goals.
- CCUS on natural gas is likely to be relevant in developing and
emerging economies, in particular large gas users and gas exporters. Therefore international financial institutions such as the World Bank, Asian Development Bank, and Green Climate Fund have a crucial role to play in supporting them to deliver CCUS in order to achieve the Paris Agreement goals.
In this study Carbon Limits reviewed the status of CCUS in 12 countries and 4 regions.