Standards or Solutions
Ecoal, June 2010, Volume 71
Emissions performance standards (EPS) are increasingly being proposed to reduce CO2 emissions from electricity generation. In this article, we outline why EPS are not a long-term solution and actually can have a negative impact on goals to reduce CO2 emissions and tackle climate change.
Emissions performance standards have long been used by governments to limit the release of pollutants into the environment. However, the concept of deploying these standards for CO2 emitted through electricity generation has only recently started to move higher up the agenda as governments look for new ways to respond to climate change concerns.
Emissions performance standards have been in place in California since 2006 when a limit of 1100lbs CO2/MWh was introduced on all baseload electricity generation. This is often used as a point of reference for proposed limits in other parts of the world. At this level, it essentially prevents the construction of unabated coal-fired power plants (efficient modern plants emit around 1500lbs while older plants emit around 1800lbs CO2/MWh). Some groups have called for even tougher standards to be applied in Europe.
Legislation has been proposed in both the US and the UK that would introduce new standards for CO2 emissions, but there may be unintended consequences that in the longer term will have a negative impact on goals to reduce CO2 emissions.
Secure Supplies of Energy
Responding to climate change and reducing CO2 emissions requires long-term thinking and investment that recognises the need for significant and secure supplies of clean and affordable energy. Establishing emission standards for CO2 would place an immediate restriction on coal-fired electricity generation without consideration for the long-term consequences for the global power generation fuel mix and energy security.
Modelling by the International Energy Agency (IEA) and other experts demonstrates that coal will continue to be the dominant energy source for power generation throughout this century. It is therefore imperative that policy frameworks to address climate change and CO2 emissions also ensure continued energy security through a role for coal in the energy mix. Carbon Capture and Storage (CCS) technology has an important role to play in ensuring both a reduction in CO2 emissions and continued energy security.
CCS can be successfully utilised to meet the types of emissions standards being proposed, but governments need to take a supportive approach that encourages the development and deployment of the technology. Blunt measures such as emissions standards are likely to drive investment in energy markets to other sources, such as unabated gas. This will reduce energy security by weakening the energy mix, driving up gas (and therefore electricity) prices and will only deliver modest, short-term emissions reductions - natural gas is not a low emission energy source, it needs CCS as well.
Increasing Investment in CCS
As the world moves towards a low carbon economy, now is not the time to penalise CO2 emissions but rather to provide incentives for their removal. To date there has been insufficient investment in CCS - the only technology that can reduce CO2 emissions and help maintain a strong energy mix.
Long-term reductions in CO2 emissions with a continued strong, secure energy mix requires policy makers to support the development of CCS for implementation with coal-fired electricity generation and other emitters. The IEA has indicated that fuel switching from coal to gas will not create the cuts in greenhouse gas emissions necessary to reach an atmospheric stabilisation target of 450ppm. In order to achieve this target, CCS must be allowed to reach its full potential and emissions standards at this stage will act as a significant barrier to this.
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