A long-term impact assessment of carbon capture (storage) investment conducted by conventional power company on sustainable development

Abstract

Carbon capture and storage (CCS) and renewable energy constitute two primary pathways towards achieving global emission reduction goals. In comparison to the fervor for renewable energy investment, the focus on CCS seems to be underwhelming, especially for conventional power companies in a transition phase. This study focuses on evaluating the long-term feasibility of integrating CCS technology into the strategic planning of the conventional power company. To evaluate the environmental and economic impacts of CCS under the context of carbon trading mechanism and renewable energy, a system dynamics model was employed. The principal findings of the study underscore that although the implementation of CCS may augment the financial burden on conventional power companies, this strategic investment preserves the potential to achieve carbon neutrality by 2060. It emphasizes that relying solely on renewable energy would make it difficult to realize this emissions commitment. Conventional power companies should earnestly contemplate the adoption of CCS technology as a strategic investment avenue to accomplish their carbon neutrality objectives. It is also suggested that subsidies and moderate policy intensity within the carbon trading mechanism can serve as effective incentives for conventional power companies to invest in and develop CCS technology. Policymakers, investors, and business owners can leverage these findings as decision-support tools in devising comprehensive strategies that encompass both CCS and renewable energy initiatives.