THE ROLE OF GOVERNMENT SUPPORT IN THE DEVELOPMENT OF THE CCS MARKET: EXPERIENCE OF COUNTRIES WITH A DEVELOPED OIL AND GAS INDUSTRY

Abstract

The article examines the role of government support in the development of the Carbon Capture and Storage (CCS) Technology market in countries with a developed oil and gas industry. It is shown that the implementation of CCS in the oil and gas sector has significant economic and environmental importance, as it allows not only to reduce the large-scale greenhouse gas emissions of this industry but also to increase the oil recovery factor through the injection of captured CO2 into depleted reservoirs. An analysis of the cost chain of various stages of the CO2 capture, transportation, and storage process is carried out, and the most costly elements are identified. The economic aspects of using Carbon Capture, Use, and Storage (CCUS) Technology for enhanced oil recovery are considered, and the need for government subsidies to ensure the commercial attractiveness of such projects under low CO2 emission prices is justified. The global experience of using economic instruments (carbon taxation, tax incentives, grants) to stimulate CCS projects in various industrial sectors is investigated. Significant differences in the approaches of leading countries compared to Russia are revealed. Pilot initiatives of the largest Russian oil and gas companies for the implementation of CCS technologies are analyzed. Recommendations are formulated for the creation of favorable regulatory conditions and effective mechanisms of government stimulation for the widespread adoption of CCS in Russia, taking into account its specifics as a major hydrocarbon producer.