A new market report examines the connection between carbon markets and carbon capture and sequestration (CCS) projects.
Market analysts ABI Research anticipate that, from 2009 through 2014, $14.6 billion will be
invested in 73 new CCS projects that will prevent 146 million tons of
CO2 from entering the atmosphere.
Says Atakan Ozbek, the study’s
author, “One of the major findings of the study is an increasing
interconnection between CCS and the Carbon Emissions Trading market, as
carbon credits accrued from CCS plants will be traded at carbon
exchanges, generating additional revenue for CCS project developers.”
Mr. Ozbek said that carbon emission credits need to reach the lofty
price of at least $40 per ton of CO2-equivalent for CCS projects to
attain true commercial status. In addition, he says, “effective policy
and regulatory developments, as well as advances in both carbon capture
and storage technologies, would need to be in place for CCS projects to
be considered commercially ready.”
The report also forecasts the global carbon emissions trading market will reach $395 billion in 2014, more than three times the $118 billion in allowances traded in 2008.
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