Publication: Carbon Capture and Storage in Developing Countries : A Perspective on Barriers to Deployment
Loading...
Published
2012
ISSN
Date
2012-07-02
Author(s)
Editor(s)
Abstract
This report assesses some of the most important barriers facing Carbon Capture and Storage (CCS) deployment within the context of developing and transition economies. The selection of the case studies is based on several criteria, including the level of reliance on fossil fuels for power generation and the level of interconnection of electricity networks. The case studies selected for this analysis are the Balkans and Southern African regions. Many countries within the Balkan region are considered transition economies, a status recognized as different from middle-income and low income developing countries. However, for the purposes of this report, countries within both regions are referred to as developing countries. The report presents the results of a model developed to investigate ways of structuring financing for power generation facilities equipped with CCS in the developing world, using instruments available from multilateral development banks and commercial financiers, as well as concessional funding sources. The objective is to assess whether a combination of such instruments could result in reductions in the overall cost of financing. The model calculates the resulting Levelized Cost of Electricity (LCOE), and includes numerous variable parameters, such as coal prices, CO2 prices, and potential revenues from selling oil and gas obtained through enhanced hydrocarbon recovery. Common theme found throughout the analyses is that there could be potential for CCS deployment in the regions under consideration. Lower-cost opportunities, for example, in sectors practiced in handling CO2, such as gas processing, or where extra revenues could be made available from enhanced hydrocarbon recovery, could provide platforms for the first CCS projects in developing countries. However, broader CCS deployment is contingent upon a number of factors, including an availability of a mix of sources of finance from public funds and carbon market mechanisms, as well as concessional financing sources. In parallel, financing should be supported by legal and regulatory frameworks not only to define mechanisms for access to concessional and climate finance, but also to reduce investor risk and create market drivers to leverage all available sources of domestic and international support.
Link to Data Set
Citation
“Kulichenko, Natalia; Ereira, Eleanor. 2012. Carbon Capture and Storage in Developing Countries : A Perspective on Barriers to Deployment. A World Bank Study. © World Bank. http://hdl.handle.net/10986/9369 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Capturing and Storing Carbon : The World Bank's Role(World Bank Group, Washington, DC, 2014-12)Developing countries will be increasingly important players in the quest to reduce emissions of greenhouse gases. By 2035, non-OECD countries will account for 66 percent of primary energy demand and, in the meantime, for 90 percent of growth in demand. Among the steps necessary to ensure that carbon capture and storage fulfills its potential to cut emissions are more powerful policy incentives, including a global carbon price; testing of new technologies in demonstration projects; and development of storage infrastructure.Publication Hashemite Kingdom of Jordan : Carbon Capture and Storage Capacity Building Technical Assistance(Washington, DC, 2012-03)This study was funded by the Carbon Capture and Storage (CCS) capacity building trust fund, and administered by the World Bank. The main objectives of the study were: to build or enhance Jordan s institutional capacity to make informed policy decisions on CCS technology and applications; to assess the potential application of CCS technology in Jordan; and to identify barriers-legal, regulatory, financial and others-to CCS activities in Jordan and recommend ways to address those barriers. During the course of this study, the study team concluded that Jordan may benefit from following the evolution of carbon capture and storage technology via publicly available information. Similar CCS studies are being carried out in Egypt, Morocco and Tunisia, and Jordan could benefit from a regional knowledge exchange event when those studies are concluded. However, given Jordan s other national priorities, tight government fiscal situation and limited CO2 emissions, the CCS team that authored this report believes that it is not in the interest of Jordan to pursue capital investment related to CCS in the short-term. This study, therefore, hopes to represent one step toward raising the awareness of CCS technology among Jordanian policy makers, professionals and academics. The CCS Capacity building trust fund is prepared to provide limited financial support to a team of Jordanian researchers for an exploratory study on the potential for CCS within Jordan. Such a study should further increase awareness of CCS in Jordan and create a body of knowledge within the country that could support next steps on CCS consideration by policymakers, or actual project implementation.Publication Concentrating Solar Power in Developing Countries : Regulatory and Financial Incentives for Scaling Up(Washington, DC: World Bank, 2012-06-28)Concentrating Solar Thermal power (CST) has a tremendous potential for scaling up renewable energy at the utility level, diversifying the generation portfolio mix, powering development, and mitigating climate change. At present, different CST technologies have reached varying degrees of commercial availability. This emerging nature of CST means that there are market and technical impediments to accelerating its acceptance, including cost competitiveness, an understanding of technology capability and limitations, intermittency, and benefits of electricity storage. Many developed and some developing countries are currently working to address these barriers in order to scale up CST-based power generation. This report: a) analyzes and draws lessons from the efforts of some developed countries and adapts them to the characteristics of developing economies; b) assesses the cost reduction potential and economic and financial affordability of various technologies in emerging markets; c) evaluates the potential for cost reduction and associated economic benefits derived from local manufacturing; and d) suggests ways to tailor bidding models and practices, bid selection criteria, and structures for power purchase agreements (PPAs) for CST projects in developing market conditions. The report also presents a review of typical cost structures for parabolic trough and power tower plants, which was derived from projects developed or under preparation in Spain and the United States specifically for this report, and an in-depth assessment of the respective cost drivers.Publication Transition to a Low Carbon Economy in Poland(Washington, DC, 2011-10)Transition to a low carbon economy in Poland is a study by the World Bank for the Polish Government, supported by the UK Department for International Development and donors to the Energy Sector Management Assistance Program (ESMAP). The study poses the question of how Poland, an European Union (EU) member state, an industrialized 'annex one' country for the purposes of international climate discussions, and an Organization for Economic Co-operation and Development (OECD) member, can successfully transition to a low carbon economy as successfully as it underwent transition to a market economy in the early 1990s. Transition to a low carbon economy in Poland provides a detailed assessment of many aspects of a low carbon growth strategy for Poland, developing insights via a suite of models that should provide ongoing assistance to policymakers. These policymakers may find reassuring the main message that Poland's transition to a low carbon economy, while not free or simple is affordable. However, capturing the full package of technologically feasible and economically sensible abatement measures requires coordinated and early action by the government.Publication Regulatory and Financial Incentives for Scaling Up Concentrating Solar Power in Developing Countries(World Bank, Washington, DC, 2011-06)Concentrating solar thermal (CST) technologies have a clear potential for scaling up renewable energy at the utility level, thereby diversifying the generation portfolio mix, powering development, and mitigating climate change. A recent surge in demand for solar thermal power generation projects in several World Bank Group (WBG) partner countries shows that CST could indeed become an important renewable energy technology that would be able to provide an alternative to conventional thermal power generation based on the central utility model. At present, different CST technologies have reached varying degrees of commercial availability. This emerging nature of CST means that there are market and technical impediments to accelerating its acceptance, including cost competitiveness, an understanding of technology capability and limitations, intermittency, and benefits of electricity storage. Many developed and some developing countries are currently working to address these barriers in order to scale up CST-based power generation. Given the considerable growth of CST development in several WBG partner countries, there is a need to assess the recent experience of developed countries in designing and implementing regulatory frameworks and draw lesson that could facilitate the deployment of CST technologies in developing countries. Merely replicating developed countries' schemes in the context of a developing country may not generate the desired outcomes.
Users also downloaded
Showing related downloaded files
Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.