CSLF

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 CCS: A significant financial investment

• Today’s commercially available CCS technologies add

around 80 percent to cost of electricity for post-combustion
removal and 35 percent for pre-combustion removal

• Research goals should reduce these energy penalties to

less than 30 percent and 10 percent, respectively

• Harvard Belfer Center, McKinsey, World Coal Institute

studies: Coal plants with CCS likely to be competitive with
other low-carbon energy sources, wind, solar, nuclear

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 Financial issues

• Financing CCS at the Commercial Scale requires to solve the

following issues
– Long term liability.
– Risks and Benefits
– Public agreement
– Finding Credit (Banks, Insurance Companies, Lawyers,…)

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This meeting is an opportunity to discuss the
specific case of Asian countries
1. CCS technology has been analyzed in depth by CSLF
technical group
2. Australian Global CCS Institute has done important work to
coordinate CCS efforts around the world
3. Strong interest in China and Japan
4. ADB has analyzed key policy issues and barriers
5. European Investment Bank will contribute to the financing
of EU projects
6. Worldbank is developing an action plan

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 Financing CCS is a key issue

1) Today, CO2 price is too low.

2) CCS costs are considerable. Subsidies are not sufficient.
3) Financing Commercial-scale projects with CCS focuses key risks.
4) High risks (technical, market, policy): All risks must be
addressed. Public-private negotiation on risk coverage is
paramount.
5) Rewards not clear. How to recover capital and make profit?
6) Long-term liability is a major issue; Development is opportunity.
7) Market uncertainties, emissions regulations and subsurface
rules must be addressed as well, to mobilize private debt and
equity.
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 From Sandra Locke, Alberta, Canada
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 RISKS

Technical, market, regulatory, risk costs and uncertainties

need to be addressed:   
– capital subsidies and loan guarantees for the additional equipment
costs;
– operating subsidies (as feed-in tariffs or tax benefits or long-term off-
take agreements) for capture and storage; 
– early co-funding of engineering;
– insurance;
– performance standards for old and new units;
– clear regulatory guidance for land use, injection, storage,
groundwater protection, and stewardship and liability. 

ADB 9
 CSLF Financing Task Force:

• 2010 Roundtables on Finance achieved a fruitful dialog between

public and private sectors
• The dialog must be taken to a deeper level to resolve issues for
financing projects with CCS at commercial scale – an order of
magnitude in funding over demonstrations or pilot efforts.
• IEA believes that energy financing challenge to 2030 is in €£$
Trillions… not a government budget call, but debt financing
needed.
• Exploration of elements in several “Funding Models” is needed:
• Differences between power sector, other energy-intensive sectors
• Differences of low-growth OECD vs. high growth Developing Nations
• Differences among market factors and regional features, industrial
capacity

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CSLF Member Countries represent
58% of world population
70% of world energy production
75% of world energy consumption
76% of world CO2 emissions
76% of world GDP
Sources: IMF (GDP 2005 data) and EIA (2004 data)

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 CSLF Goals
The CSLF advances technological capacity through
collaborative efforts with all the stakeholders to address key
technical, economic, regulatory and environmental
obstacles to CCS development and deployment.
This implies to find a clear legal and regulatory framework
for CCS, accelerate the development of the demonstration
phase and understand how to reach the commercial scale.
The CSLF has strong links with IEA and GCSSI

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 Upcoming CSLF Meetings

• CSLF Technical Group Meeting

Edmonton, Alberta, Canada
May 18-20, 2011

• 2011 CSLF Ministerial

Meeting
Beijing, China
September 20-23, 2011

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 Thanks to ADB
for organizing this meeting

Thank you for participating in this

important Roundtable.

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