Driving Carbon Capture and Storage Forward in China

Abstract

China's economy has been on a solid fast growth track since 1978. The economy expanded by an average annual rate of about 10% during the last thirty years. That is more than triple the average growth rate of the world economy during the same period. The rapid economic development has been associated with growing energy consumption and carbon dioxide (CO₂) emission. Although the first phase of the Kyoto Protocol exempts China from reducing its own CO₂ output, China, as the first or second largest CO₂ emission country, is facing growing international political pressure. As a responsible big country, China will almost certainly have to respond to climate change in the future. China is entering unexpected fast development period of the industrialization, urbanization and motorization, in which large-scale new infrastructures will be built. This provides great opportunity to plan for longer-term CO₂ mitigation-the infrastructures built today have a long life time and are not easy to upgrade the technologies involved, and decisions made now will have a major impact on energy utilization mode and CO₂ mitigation technology option in coming years. Carbon Capture and Storage (CCS), as an option in the portfolio of mitigation actions to combat climate change, is expected to have far-reaching implications for China. This paper (1) explores the strategic significance of CCS for China by making an extreme scenario analysis of Chinese power sector in 2030; (2) provides an overview of the recent CCS activities in China; and (3) identifies the major challenges with respect to CCS development in China and put forwards immediate strategies.

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