Policy instruments for advancing CCS in Dutch power generation

Abstract

Abstract The Netherlands is heavily dependent on the success of carbon capture and storage (CCS) for its decarbonisation policy. This paper discusses several ways how CCS in the Dutch power sector can be stimulated after the round of demonstration activities up to 2015. It describes recent policy developments in the UK, US and Germany, and concludes that a policy package could be the most useful way forward if it includes a financial incentive to cover additional costs of CCS. The costs of financial support could amount to 1–3% of the Dutch electricity bill, even with CO2 prices in the € 20–50 range until 2030. A policy package could also include a regulatory instrument like an emissions performance standard (EPS) or other regulation for new coal-fired power plants to provide additional certainty. The EU Treaty explicitly leaves room for more stringent regulation from Member States required to protect the environment.