Media Releases
Institute Welcomes Inclusion of CCS Under the Australian Emissions Reduction Fund
1st October 2021
1 October 2021, – The Global CCS Institute has welcomed the inclusion of carbon capture and storage (CCS) under the Emissions Reduction Fund (ERF), announced today by the Australian Government. Inclusion under the ERF will provide a financial incentive for carbon captured and stored, an important factor in creating an enabling investment environment.
The Institute’s General Manager – Commercial, Alex Zapantis, said inclusion in the ERF was an important step in recognising the relevance of CCS amongst other low emssions technologies and delivering its full abatement opportunities and social and economic value.
“CCS is pivotal to our global response to climate change, is commercially available today and is well placed to strengthen our economy and support jobs. We need all climate mitigation solutions, across a broad range of industries – inclusion under the ERF is significant and timely.”
“A key barrier to investment in CCS has been the lack of a price signal placing a value on CO2. As global climate ambition continues to be backed by action, this is one of several necessary mechanisms which will drive private sector investment.”
“CCS will be critical to decarbonisation across a range of sectors, including oil and gas, cement, steel, fertilisers and chemicals and will play an important role in Australia’s growth as a global hydrogen exporter. Put simply, CCS can help industries transform as we head toward net zero, sustaining local economies and creating jobs in new sectors.”
Mr Zapantis said that inclusion under the ERF was an important step in setting long-term policy, creating an enabling investment environment and deploying CCS at scale to deliver climate benefits.
“As we will highlight in our upcoming Global Status of CCS Report, the technology is experiencing enormous growth around the world. In other jurisdictions, like the United States, financial incentives have supported the rapid and at-scale deployment of CCS. Inclusion under the ERF reaffirms that Australia is positioned to be a leader in CCS and climate more broadly.”
The Australian Government has recently committed $250 million to developing CCS hubs and $275 million for hydrogen. The Clean Energy Regulator is seeking consultation on including other carbon capture technologies under the ERF, including utilisation and direct air capture, both of which feature prominently in net zero projections from the IPCC and the International Energy Agency.
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Matt Steyn (Melbourne): +61 405 018 007 matt.steyn@globalccsinstitute.com
About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. For more information, visit www.globalccsinstitute.com