Energy

This brief examines the national challenges related to deploying and scaling infrastructure to transport CO₂ from capture sites to storage or utilization sites at a scale consistent with achieving net-zero by 2050.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

By investing in the public and private sector research and development in this space, and by fostering a community of researchers, entrepreneurs, and investors literate in CO2 capture opportunities, the United States can be the leader of this new economic sector. It is essential for the Nation to build a vibrant and sustained research and development community spanning the public sector, academic and research domains, and for-profit companies, ensuring world leadership in this new technological domain.

This paper focuses on China and the potential role of renewable hydrogen in accelerating its transition to a low-carbon economy. Our research goal is to provide policymakers and other stakeholders the means to make informed decisions on technology innovation, policy instruments, and long-term investments in enabling infrastructure.

The purpose of this paper is to analyze how China’s new power is reaching Europe, the challenges that it poses, and the European responses to this new reality. This process has to be examined in the context of the current strategic competition between China and the U.S. and its reflection on the transatlantic relationship.