Several key issues for CCUS development in China targeting carbon neutrality

Abstract

Carbon capture, utilization, and storage (CCUS), as a technology with large-scale emission reduction potential, has been widely developed all over the world. In China, CCUS development achieved fruitful outcomes. CCUS gained further broad attention from the announcement of the carbon neutrality target by 2060, as CCUS is an indispensable important technology to realize carbon neutrality. It helps not only to build zero-emission and more resilient energy and industry systems but also provides negative emission potential. This paper discusses the new demand for carbon capture, utilization, and storage development brought by the carbon neutrality target analyzes the development status. As there remain various challenges of CCUS development, this paper focuses on several key issues for CCUS development in China targeting carbon neutrality: 1) how to reposition the role of CCUS under the carbon neutral target? 2) how shall we understand the technology development status and the costs? 3) what role shall utilization and storage play in future? 4) potential strategy applied to solve challenges of source-sink mismatch and resources constraints; and 5) new business model that suits large scale deployment of CCUS. This paper puts forward several policy suggestions that should be focused on now in China, especially to raise awareness under the vision of carbon neutrality that the role and contribution of CCUS are different, to accelerate the establishment of a comprehensive and systematic enabling environment for CCUS.