Www.perspectives.cc · [email protected] © 2014 Perspectives GmbH The UNFCCC market...

www.perspectives.cc · [email protected] © 2014 Perspectives GmbH

The UNFCCC market mechanisms– an effective tool to mobilize

deployment of CDR?

CEC 2014, Berlin, 20 August 2014

Axel Michaelowa

University of Zurich, [email protected]

Perspectives, [email protected]


Topics

Coverage of various mitigation options by market mechanisms

The role of market mechanisms in mitigation Carbon capture and storage in the market

mechanisms Markets and CDR: an outlook

www.perspectives.cc · [email protected]


Coverage by market mechanisms


Emission reduction

Carbon capture and storage fromemission sources

Air capture andsequestration

Biologicalsequestration

Solar radiationmanagement

“Classical”mitigation

Climate engineering

Renewables

Fuel switch

GHG destruction

Energy efficiency

Geological

Vegetation on land

Ocean

Surface

Atmospheric

Stratospheric

Space

Products


The role of market mechanisms

Various mechanisms (ETS, offsets)

Fast take-off Price crash since 2011 Fragmentation


Lessons from CCS

CCS in CDM took a long time for rule-setting (2005-11) Triggered by methodology submissions Concerns about permanence of sequestration

Offset reserve Site selection criteria Comprehensive risk and safety assessment Monitoring over at least 30 years, of which 10 years without seepage

Liability for eventual reversal of sequestration Allocation to seller after end of monitoring

Prohibitive costs of CCS / CDR CCS is two orders of magnitude more expensive than current price

No methodology or project submission after 2011 Technical CDR is three orders of magnitude more expensive


Markets and CDR Sufficient demand required to increase market prices Three orders of magnitude above current levels extremely unlikely Would require massive strengthening of emissions commitments

Sufficient technical progress in CDR required to reduce costs massively

Possibly one order of magnitude? Monitoring and liability rules: learn from CCS in CDM International regulation! Detailed safeguards for site selection and Time where liability reverts to seller

Can markets play a role in SRM? Costs much lower than for CDR – market would be attractive Temporary nature of credits?



Thank you!

Perspectives GmbHUniversity of Zurich

Axel [email protected]@pw.uzh.ch

Www.perspectives.cc · [email protected] © 2014 Perspectives GmbH The UNFCCC market...

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