January 27, 2022: Unlocking CO2 infrastructures

Abstract - Carbon removal certification may become a powerful instrument to accelerate decarbonization efforts. In Europe, its implementation is expected to foster the deployment of Bioenergy with Carbon Capture and Storage (BECCS). Yet, the large-scale adoption of BECCS is also limited by the availability of a costly CO₂ transportation infrastructure shared with fossil-fueled emitters. In this paper, we examine the interactions between carbon removal accounting (which determines financial incentives for BECCS) and optimal CO₂ infrastructure deployment by asking how certification affects the feasibility of BECCS projects. We propose an original economic framework to explore this question and apply it to a real case study in Sweden.