Power sector views on Industrial Carbon Management

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  • Eurelectric welcomes the opportunity to provide feedback and inform the ongoing works on the development of the EU’s strategy for industrial carbon management.
  • In particular, Eurelectric considers that carbon removals will play a key role in delivering negative emissions necessary for achieving net-zero and counterbalancing the residual CO2 in hard-to-abate sectors where no other technological decarbonisation solution is currently available. Industrial carbon removals can significantly contribute to this regard. It is therefore crucial to rapidly ramp up these technologies, many of which are being enabled by CCS.  CCS for abatement, on the other hand, would at best be a bridge technology before 2050. Currently not abatable industrial processes that are unlikely to decarbonise on their own by mid century may apply this technology.
  • CCS and carbon removals must not in any way replace or reduce mitigation efforts. As the EU opens up to removals through the establishment of a certification framework and explores options for CO2 transport and storage, it is paramount that climate policy framework continues to incentivise the pursuit of greenhouse gas emissions abatement through cost-effective solutions, including electrification, phasing out of fossil fuels and accelerating the deployment of clean and renewable generation capacities.
  • The electricity industry is engaged in a deep decarbonisation process and considers that the EU’s electricity supply can be fully climate-neutral well before 2050 if the right enablers are activated, including investment in generation capacities and distribution networks; streamlined permitting processes; access to raw materials and components for net-zero technologies; and a stable, predictable regulatory framework.
  • Electrification is the most direct, efficient, and effective way to achieve the society's decarbonisation goal, as it reduces emissions in three ways: switching to carbon-neutral power generation, reducing total energy demand, and replacing fossil-based inputs to industrial processes.
  • To reach a net zero power sector, Eurelectric’s Decarbonisation Speedways FF55-inspired scenario, estimates that 133 Mton CO2 would need to be captured. By 2050, the power sector is assumed not to emit any GHGs, hence the role of such technologies in the electricity industry will be limited. However, at least 106 Mt CO2 emissions from end use needs to be covered in the FF55-inspired speedway to reach a net zero economy.
  • The costs of carbon capture are currently too high to be economically feasible. With the help of government and company’s support installations can be build. Investments in such infrastructure should follow thorough cost-benefit analysis and the polluter pays principle. EU Industrial Carbon Management policy should maintain a technology neutral approach and recognise the benefits and limitations of each carbon capture and removal technologies.

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