Industry is Betting Big on CCS as a 'Shield' for Fossil Fuels at Bonn Climate Talks

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BONN, GERMANY โ€“ Each day at the international climate talks, dozens of side events take place on a wide range of topics: from phasing out coal to the role of music in the climate actionย movement.

Those looking for the particular thrill of learning about carbon capture and storage (CCS) technology have been spoilt for choice. All thanks to an industry-sponsored programme run by a business lobby group tucked away at the very back of the exhibitionย centre.

There, four events on CCS were held in the space of just three days. The reason industry groups are so keen? Because the technology provides โ€œa clear way forward without the need for a rapid abandonment of the worldโ€™s fossil resourcesโ€, according to the groupโ€™sย brochure.

While the idea is nothing new, the scale of industry promotion of the technology seems to have ramped up. Following years of discussions about CCS and little progress, the industry is being accused by some at COP23 of using the technology as a โ€œshieldโ€ and โ€œan excuseโ€ to delay action while continuing to profit from burning fossilย fuels.

According to the Intergovernmental Panel on Climate Change (IPCC), projections to reach the Paris Agreement target of limiting global temperature rise to two degrees above pre-industrial levels requires CCS deployment combined withย bioenergy.

It is also accepted that oil and gas companies have the geological and business expertise to deploy CCS on a large scale but today the technology is still widely considered to be at an experimentalย stage.

Yet, at the climate talks in Bonn, the oil and gas industry was keen to push a message that it is still committed to โ€œmaking CCS flyโ€ โ€”at least in theย theory.

A โ€˜Shieldโ€™ for Oil andย Gas

Among the big players taking part in the conversation is the International Emissions Trading Association (IETA), a business organisation which aims โ€œto build international policy and market frameworks for reducing greenhouse gases atย lowestย costโ€.

Throughout the talks, IETA hosted four different events on the deployment of CCS including giving a platform to IPIECA, the global oil and gas industry association for environmental and social issues, to present itsย case.

But frustrations among civil society groups pushing for more ambitious action isย growing.

Chris Littlecott, from think tank E3G, told DeSmog UK the oil and gas industryโ€™s โ€œrhetorical engagementโ€ was not good enough and that CCSโ€™ future impact was being used as โ€œan excuseโ€ to delay greater efforts to deploy the technology while continuing to profit from burning cheaper fossilย fuels.ย 

โ€œAcross the fossil fuel industry, companies continue to use the future idea of CCS as a shield for continued investment in new fossil fuels. In a sufficiently slow timetable they can be making a lot of money with business as usual,โ€ heย added.

Guy Shrubsole, campaigner at Friends of the Earth UK, described the oil and gas industryโ€™s efforts to develop CCS as real as โ€œa unicornโ€, adding that civil society was โ€œrunning out of patienceโ€ as the industry โ€œhas been dragging their feet for a longย timeโ€.

CCS as a Lifeline for Bigย Oil

At a time when the oil and gas industry is under growing pressure from the rapidly collapsing price of renewable energy, events taking place at the climate talks show fossil fuel companies continue to see CCS as aย lifeline.

IETA, whose members include a host of fossil fuel companies including BP,ย Chevron,ย Shell,ย Rio Tinto,ย Statoilย andย Total, hosted the events in its โ€œbusiness hubโ€ at the back of the exhibition area of the conferenceย centre.

Thanks to a partnership with the UNFCCC, the UN body which organises the climate talks, IETA was able to bring a delegation of 73-strong business representatives to theย talks.

This includes Anthony Andrews, the environmental and social policy advisor for BP, David Hone, chief climate change adviser at Shell, Arthur Lee, senior climate change adviser for Chevron and Giovanni Milani, Eniโ€™s environment and safetyย director.ย 

In an event on CCS organised by International Petroleum Industry Environmental Conservation Association, universally known as IPIECA, big names from the oil and gas sector, including Hone, Lee, Liz Rogers from BP, and Dominique Copin from Total, made the case for CCS as the solution for the industry to play a role in a low carbonย economy.

Jim Herbertson, IPIECAโ€™s lead on climate and energy, said the transition will play out โ€œacross the course of the centuryโ€ asserting that โ€œthere is still a role for oil andย gasโ€.

And Hone agreed: โ€œWe are likely to continue to have large emissions in the economy that will need CCSโ€.

Copin recognised that the oil and gas industry โ€œfailedโ€ to scale-up CCS but added that despite the oil majorsโ€™ โ€œhealthyโ€ financial situation, it was down to government to step in and support the big polluters transform theirย operations.

โ€œCCS is needed not only for the future of the oil and gas industry but also for the rest of society,โ€ he said, before quickly adding: โ€œIt is for societyย first.โ€

โ€œBut we will never make it if we donโ€™t have strong support from our governments. It is outside the capacity of our companies although they are quite big and healthy,โ€ heย said.

Although E3Gโ€™s Littlecott said he was sympathetic to the industryโ€™s call for national policy to substantiate investment, he accused companies of shifting the focus onto governments โ€œas part of their efforts to delay the deployment of theย technologyโ€.ย 

โ€œThey know that they need to move but they donโ€™t recognise that they are the people who need to take the first step by putting down investments from their own pockets,โ€ heย said.

Shrubsole added that while companies are โ€œrelying on taxpayers and government largesseโ€, the deadline for real progress to be made on the technology is โ€œextremelyย pressingโ€.

CCS in the UK

CCS technology does however have some backing fromย governments.

The UK government for instance pledged ยฃ100m for Carbon Capture, Usage and Storage (CCUS), a technology which also seeks to recycle the captured CO2, as part of last monthโ€™s Clean Growthย Strategy.

Although the pledge falls short of the previous ยฃ1bn grant the UK government had earmarked to develop CCS technology before scrapping it in 2015, the announcement shows that governments are ready to back companies which have something toย offer.ย 

And the UK is likely to continue being the stage for further analysis on the feasibility of developing CCS at scale. In Bonn, Copin revealed that the Oil and Gas Climate Initiative, a consortium of 10 oil majors which produced around 20 per cent of the worldโ€™s oil and gas last year, were currently focusing their CCS work in the UK.

Unlike transitioning from fossil fuels to renewables as a way to cut emissions from the energy sector, CCS is seen as one of the few options so far to decarbonise certain heavy industries such as cement, steel, fertiliser and the chemical sectors and could also be used for gas plants. Many experts argue this is where the focus of developing CCS should be placed instead โ€“ as a tool to make industry cleaner, rather than a shield used to perpetuate societyโ€™s fossil fuelย dependence.

Photo: HKuhse-Bonn via Wikimedia Commons | CC4.0

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