The Study On The Industrialization Development Of Carbon Dioxide Capture And Storage (CCS) In China

Since the beginning of new century, global warming which is caused by carbon dioxide (CO2) and other greenhouse gas emissions is increasingly raised concerns, and the "Bali Roadmap","Copenhagen agreement" also motivates countries to take active measures to tackle climate change. However, due to slow progress in energy efficiency technologies, energy consumption structure rigidity and reducing in renewable energy choice, the effect of carbon emissions abatement worldwide is far below the expected level. In such a context, the United Nations Intergovernmental Panel on Climate Change (IPCC) specially offers Carbon Dioxide Capture and Storage (CCS) technology, which is capturing CO2generated by fossil fuel combustion, and long-term storing it in natural underground reservoirs to reduce CO2emissions to the atmosphere.As a direct, effective and promising carbon abatement technology, CCS has been in the rapid development and wide application worldwide. As to China, CCS currently is still in the phase that most projects are in demonstration; however, considering that China is facing the grim situation of carbon emissions, the rigid constraints of energy demand and supply structure, the practical requirements of sustained economic growth; so, the healthy and rapid development of CCS in China, and ultimately to achieve the industry level, has some important significance. Therefore, this paper chooses the industrial development of CCS in China as the main research area.As the promotion and application of CCS technology on a global scale is not long, and China’s development experience in CCS technology and projects is relatively scarce, this article," CCS industrial development in China," is mainly based on the combination of CCS experience in developed countries and actual situation in China. Considering that this issue is strategic, forward-looking and complexity, this paper is divided into two sections:the first section, the feasibility and necessity of CCS industrial development, this section mainly focuses on the analysis of global CCS development situation, and the analysis of CCS resources economic models. The second section, how to promote China’s CCS industrial development? Firstly, based on the analysis of first section, this paper plans the implementation steps of China’s CCS industrial development, and points out the main policy orientation at different stages of China’s CCS industrial development. Then, from the angles just like financial support, policies and regulations, public awareness, technical applications, market construction, risk management, etc, this paper has systematically analyzed how to promote the industrial development of China’s CCS, and proposed some policy recommendations.The feasibility and necessity of CCS industrial development:On the one hand, through the introduction of CCS technology development journey, combined with the historical experience of other technologies and environmental industries, this paper has defined the definition of CCS industrialization, and analyzed characteristics of CCS industrialization; then, on the basis of the reality of CCS development at home and abroad, this paper has analyzed the necessity of CCS industrial development in term of marketization of low-carbon technologies, social sustainable development, promotion and protection of employment and the formation of strategic emerging industries; and also has analyzed the feasibility of CCS industrial development in term of cost effectiveness, public awareness, policies and regulations support and risk management. On the other hand, this paper constructs a dynamic resource economics model of utility maximization, which allows that CCS technology applications and new energy alternatives is coexisted, in order to analyze social welfare changes in different situations of CCS application. Model showed that, CCS application has a significant role in promoting social welfare; in the situation that the operating costs of the new energy are not significantly dropped, CCS will be the main driver of carbon emissions abatement in the whole society; moreover, to achieve large-scale industrial development of CCS, a good development environment is crucial.For the question "how to promote China’s CCS industrial development." On the one hand, on the basis of the analysis of CCS development experience at different stages in foreign countries, and CCS development status in China, combined with the main conclusions from the feasibility and necessity of CCS industrial development, this paper proposes three development stages to achieve industrial development of CCS in China, namely the typical demonstration projects, application in key industries and comprehensive marketing development stages; furthermore, considering the characteristics of the different stages of CCS industrialization development, this paper points out the relevant policy should be focused on. On the other hand, based on the analysis in China’s CCS industry implementation steps and policy priorities, the paper chooses financial support, policy and regulations construction, public awareness as the main aspects of China’s CCS industrial development to analyze, and proposes the corresponding policy recommendations. In particular, as to financial support, through the analysis of financial support experience in foreign, the status and problems of China’s financial support, this paper builds a CCS project investment (or financing mode selection) quantitative evaluation system, in order to boost micro-level CCS investment activities; and then, proposes financial support policies for China’s CCS industrial activities from the macro level. As to policies and regulations, through the existing CCS-related regulations and policies in developed countries, the paper points out the main problems which China’s CCS is facing, such as laws and regulations, long-term planning and institutional arrangements, etc; and concludes that China should focus on planning in CCS industry and technical standards, CCS supporting and risk control policies, in order to improve CCS industrial development. As to public support, on the basis of foreign public awareness and supports of CCS from different groups, through a questionnaire survey of employees from relevant industries, such as electricity, environment, renewable energy, energy, government agencies, research institutions, educational institutions, enterprises in Beijing, Liaoning and other provinces, and using load factor turn and regression estimation, this paper examines Chinese public attitudes at the development of CCS, and proposes major initiatives which are helped to win the public supports for China’s CCS industrial development. In addition, from technology application, market development and risk control, this article points out the major initiatives in order to promote China’s CCS industrial development.