Power Plant CCS

Carbon dioxide is the most common greenhouse gas after water vapor. Burning fossil fuels, land clearing and other activities of modern industrial society have caused the concentration of carbon dioxide in the atmosphere to climb from about 280 parts per million to 380 parts per million, causing warming and other climate changes.

From 1991 to 2000, CO₂ accounted for 82% of total U.S. GHG emissions in terms of its global warming potential. About 96% of these carbon emissions resulted from the combustion of fossil fuels for energy

Energy efficiency improvements and switching from fossil fuels toward less carbon intensive energy sources were once seen as the only realistic means of reducing carbon dioxide (CO₂) emissions. In recent years, however, analysts and policymakers have begun to recognize the potential for a third option—the development of “end-of-pipe” technologies that would allow for the continued utilization of fossil fuel energy sources while significantly reducing carbon emissions. These technologies have collectively come to be known as carbon capture and storage (CCS) technologies.

Large point sources of CO₂ would allow economies of scale in carbon separation and simplify transportation to a storage site. Electricity generation and some large fossil fuel burning industrial sources are therefore good candidates for carbon capture. Coal-fired power plants have a flue gas stream with 9-14% mole fraction CO₂, while natural gas combined-cycle plant flue gases typically have a 4% CO₂ content. Many large industrial processes involve large-scale combustion similar to that used for electricity generation and could adopt similar carbon capture techniques. About two-thirds of the CO₂ emissions from oil refineries come from fossil fuel fired heaters and about 60% of the CO₂ emitted by the iron and steel industry is from blast furnaces.

Conventional Carbon Capture and Storage or geosequestration involves capturing and purifying carbon dioxide that would otherwise be emitted to the atmosphere, compressing it, transporting it to a suitable site and injecting it into deep geological formations where it will be trapped for millions of years. The first step in geosequestration is separating the carbon dioxide from other gases in the exhaust stream and in the process capturing the carbon dioxide. Carbon capture or separation of carbon dioxide from the flue gases of power plants in conventional CCS is done with the help of solvents, scrubbers or sorbents. A lot of research is being done in this area.

In addition to conventional CCS, there are many futuristic technologies being developed to capture and sequester carbon. The most promising technologies in this field include carbon capture using Algae and carbon sequestration and mitigation by replacing coal with biomass in power plants. Mineralization is another interesting Carbon Storage method that is being researched and refined to make it cost competitive with conventional/ geological sequestration of carbon.

CO₂ can also be used to make useful products like Hydrocarbons, ethanol, methanol, bio-plastics, Biochar, acitic acid, bicarbonates etc. Although capturing CO₂ by making useful products can only result in mitigation of a minute percentage of total CO₂ present in the atmosphere, it is a viable way of CO₂ mitigation since it can be quite profitable.

In spite of all the different methods discussed above, afforestation remains the most sensible and eco friendly way of capturing CO₂. Assuming a growing tree can capture about 10 tons of CO₂ over its lifetime; if everyone in the world planted just one tree we could effectively capture about 60 billion tons of CO₂ over several years. Total world emission of CO₂ is about 32 billion tons per year.

The Kyoto protocol

The Kyoto Protocol to the United Nations Framework Convention on Climate Change strengthens the international response to climate change. Adopted by consensus at the third session of the Conference of the Parties (COP3) in December 1997, it contains legally binding emissions targets for Annex I (developed) countries for the post-2000 period. The EU and its Member States ratified the Kyoto Protocol in late May 2002.

By arresting and reversing the upward trend in greenhouse gas emissions that started in these countries 150 years ago, the Protocol promises to move the international community one step closer to achieving the Convention’s ultimate objective of preventing "dangerous anthropogenic [man-made] interference with the climate system".

The developed countries commit themselves to reducing their collective emissions of six key greenhouse gases by at least 5%. This group target will be achieved through cuts of 8% by Switzerland, most Central and East European states, and the European Union (the EU will meet its target by distributing different rates among its member states); 7% by the US; and 6% by Canada, Hungary, Japan, and Poland. Russia, New Zealand, and Ukraine are to stabilize their emissions, while Norway may increase emissions by up to 1%, Australia by up to 8%, and Iceland 10%. The six gases are to be combined in a "basket", with reductions in individual gases translated into "CO₂ equivalents" that are then added up to produce a single figure.

Each country’s emissions target must be achieved by the period 2008-2012. It will be calculated as an average over the five years. "Demonstrable progress" towards meeting the target must be made by 2005. Cuts in the three most important gases – carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂0) - will be measured against a base year of 1990 (with exceptions for some countries with economies in transition).

Cuts in three long-lived industrial gases – hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF₆) - can be measured against either a 1990 or 1995 baseline. (A major group of industrial gases, chlorofluorocarbons, or CFCs, are dealt with under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.)

Actual emission reductions will be much larger than 5%. Compared with emissions levels projected for the year 2000, the richest industrialized countries (OECD members) will need to reduce their collective output by about 10%. This is because many of these countries will not succeed in meeting their earlier non-binding aim of returning emissions to 1990 levels by the year 2000; their emissions have in fact risen since 1990. While the countries with economies in transition have experienced falling emissions since 1990, this trend is now reversing.

Therefore, for the developed countries as a whole, the 5% Protocol target represents an actual cut of around 20% when compared with the emissions levels that are projected for 2010 if no emissions-control measures are adopted.

Countries have a certain degree of flexibility in how they make and measure their emissions reductions. In particular, an international "emissions trading" regime is established allowing industrialized countries to buy and sell emissions credits amongst themselves. They will also be able to acquire "emission reduction units" by financing certain kinds of projects in other developed countries through a mechanism known as Joint Implementation. In addition, a "Clean Development Mechanism" for promoting sustainable development enables industrialized countries to finance emissions-reduction projects in developing countries and receive credit for doing so.

They pursue emissions cuts in a wide range of economic sectors. The Protocol encourages governments to cooperate with one another, improve energy efficiency, reform the energy and transportation sectors, promote renewable forms of energy, phase out inappropriate fiscal measures and market imperfections, limit methane emissions from waste management and energy systems, and protect forests and other carbon "sinks".

The Protocol advances the implementation of existing commitments by all countries. Under the Convention, both developed and developing countries agree to take measures to limit emissions and promote adaptation to future climate change impacts; submit information on their national climate change programmes and inventories; promote technology transfer; cooperate on scientific and technical research; and promote public awareness, education, and training. The Protocol also reiterates the need to provide "new and additional" financial resources to meet the "agreed full costs" incurred by developing countries in carrying out these commitments.

The Conference of the Parties (COP) of the Convention also serves as the meeting of the Parties (MOP) for the Protocol. This structure has been established to facilitate the management of the intergovernmental process. Parties to the Convention that are not Parties to the Protocol will be able to participate in Protocol-related meetings as observers.

The agreement is being reviewed. The Parties will take "appropriate action" on the basis of the best available scientific, technical, and socio-economic information. Talks on commitments for the post-2012 period are on-going [see UN Climate Change Conference 2007, 3rd Meeting of Parties (COP/MOP-3) to the Kyoto Protocol, Bali ]

Full text of the Kyoto Protocol

European Union ratifies the Kyoto Protocol - Press Release

The Kyoto Protocol and climate change - background Information

Kyoto Protocol

Delegates celebrated adoption of the Protocol in 1997. The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions .These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012. The major distinction between the Protocol and the Convention is that while the Convention encouraged industrialised countries to stabilize GHG emissions, the Protocol commits them to do so. Recognizing that developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity, the Protocol places a heavier burden on developed nations under the principle of “common but differentiated responsibilities.” The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. 180 nations have ratified the treaty to date. The detailed rules for the implementation of the Protocol were adopted at COP 7 in Marrakesh in 2001, and are called the “Marrakesh Accords.” The Kyoto mechanisms Under the Treaty, countries must meet their targets primarily through national measures. However, the Kyoto Protocol offers them an additional means of meeting their targets by way of three market-based mechanisms. The Kyoto mechanisms are: Emissions trading – known as “the carbon market" the clean development mechanism (CDM) joint implementation (JI). The mechanisms help stimulate green investment and help Parties meet their emission targets in a cost-effective way. Monitoring emission targets Under the Protocol, countries’actual emissions have to be monitored and precise records have to be kept of the trades carried out. Registry systems track and record transactions by Parties under the mechanisms. The UN Climate Change Secretariat, based in Bonn, Germany, keeps an international transaction log to verify that transactions are consistent with the rules of the Protocol. Reporting is done by Parties by way of submitting annual emission inventories and national reports under the Protocol at regular intervals. A compliance system ensures that Parties are meeting their commitments and helps them to meet their commitments if they have problems doing so. Adaptation The Kyoto Protocol, like the Convention, is also designed to assist countries in adapting to the adverse effects of climate change. It facilitates the development and deployment of techniques that can help increase resilience to the impacts of climate change. The Adaptation Fund was established to finance adaptation projects and programmes in developing countries that are Parties to the Kyoto Protocol. The Fund is financed mainly with a share of proceeds from CDM project activities. The road ahead The Kyoto Protocol is generally seen as an important first step towards a truly global emission reduction regime that will stabilize GHG emissions, and provides the essential architecture for any future international agreement on climate change. By the end of the first commitment period of the Kyoto Protocol in 2012, a new international framework needs to have been negotiated and ratified that can deliver the stringent emission reductions the Intergovernmental Panel on Climate Change (IPCC) has clearly indicated are needed. More information on targets

Carbon Trading - Climate Change & Global Warming

Climate Change

The growing scientific consensus is that the effects of climate change and global warming is largely the result of emissions of carbon dioxide and other greenhouse gases from human activities including industrial processes, fossil fuel combustion, and changes in land use, such as deforestation.

Projections of future warming suggest a global increase of 2.5ºF (1.4ºC) to 10.4ºF (5.8ºC) by 2100. In addition to warming, increases in sea level and changes in precipitation, including more frequent floods and droughts, are likely. These changes, over time, are referred to broadly as "climate change".

Global Warming

The world is undoubtedly warming as the science of climate change and global warming will provide evidence for. To protect ourselves, our economy, and our land from the adverse effects of climate change, we must ultimately reduce emissions of carbon dioxide and other greenhouse gases. To achieve this goal we must consider cost effective ways of reducing or avoiding the production of GHG emissions.

Personal Carbon Trading

Personal Carbon Trading

Confused about the debate on personal carbon trading?
Find out more about what it is, read completed and current research and find out how you can get involved in the debate.

Read more more information»

Personal carbon trading - latest

Download the Environmental Audit Committee report into personal carbon trading (PDF)

Take a look at recent research into personal carbon trading published by Defra

Also of interest

Response to the Defra research by the Centre for Sustainable Energy
Response to the Defra research from the Lean Economy Connection (PDF)

From the blogosphere

Interesting views on personal carbon trading: http://learnsigma.com/why-personal-carbon-trading-works

Carbon trading: A huge opportunity for Indian companies

MANY COMPANIES in cities and even in smaller towns of India are now doing a new form of business. The business of these firms are somewhat related to trading but it is a departure from usual commodity or stock trading. It is the trade of ‘polluting gases’. Firms involved in such a business are then said to be involved in carbon trading. Usually banks come into the picture in this kind of trading as they keep the records of debit and credit of ‘polluting account’. Many companies are using carbon credit to boost the bottom line of their balance sheet.

What is carbon credit?

Carbon trading is basically a commercialised activity that originates from protecting the earth from harmful emission of gases from industries. The concept of carbon credit is that of incentivising the units which pollute less and disincentivising the units that pollute more. The most dangerous gases thrown out by the industrial units are six in number - carbon dioxide, methane, nitrous oxide, hydroflourocarbons, perflurocarbons and sulphur hexafluoride. The group of such gases, which are responsible for removing greenery from our planet, are called greenhouse gases.

On the initiative of UNO (United Nations Organisation), Kyoto protocol was signed in 11 December 1997 and it came into force from 16 December 2005. The Kyoto protocol aims to tackle global warming by setting target levels for nations to reduce greenhouse gas emission worldwide. The Kyoto protocol is an agreement by which the ratifying countries have agreed to reduce their emission of greenhouse gases. Under the protocol, initial target is to reduce greenhouse gas emission to 5.2 per cent below 1990 base level. 172 countries have signed the Kyoto Protocol. Australia has also recently ratified the protocol. These countries and their companies are the only ones allowed to engage in carbon trading.

How it works?

A central authority fixes the limit of the amount of a pollutant that can be emitted into the environment. Now this limit becomes the permit of pollutants allowed into the environment. This permit is devised into several smaller units and distributed to several companies in the form of permit or credit or allowance. This permit or credit or allowances gives licenses to emit a fix amount of pollutant into the environment.

Now if a company, say SRF, is able to emit only eight units of greenhouse gases out of 10 units allotted to it, then SRF will be having two units of emission as ‘credit outstanding’ in its ‘pollution’ account. On the other side, if a company say MRF emits 12 units instead of 10 units allotted to it then MRF will be having two units of ‘debit balance’ in its pollution account. Now SRF will be able to transfer its two ‘credit balance’ to two debit balance account of MRF. So both the companies’ pollution account will be matched and the environment also is able to digest a certain scientifically fixed amount of pollutants. This transfer from SRF to MRF will be for some monetary consideration and hence it is referred as carbon trading.

Carbon credit, as defined by Kyoto protocol, is one metric tonne of carbon emitted by burning of fossil fuels. The GWP (Global Warming Potential) factors are used to convert each of the five gases (like methane, for example) that are not CO₂ into tonnes of CO₂ equivalent (CO₂E), which is the standard of trading. To bring the buyers and sellers of carbon trading on one platform and to augment the process of carbon trading, carbon credits are traded at CO₂E exchange in Britain, CDM (Clean Development Mechanism) exchange in Europe. In India recently, MCE (Multi Commodity Exchange) has announced carbon trading exchange with license agreement from Chicago climate exchange. Like the usual stock exchange, carbon credits have all spot transactions, forward settlement and options of trading.

Prices of credit trading vary and some time back was in the range of Euro six to Euro 12 per tonne of CO₂. An estimate suggests that in 2004, 107 million tonnes of CO₂ were exchanged through carbon trading worldwide. There is a steep penalty to the tune of Euro 40 per tonne to the companies emitting more than their quota. So companies that are having huge carbon credit can sell these to companies that are deficient in carbon credit or that have exhausted their quota for huge prices.

Big opportunity for Indian companies

Almost all industrialised countries are huge buyer of carbon credit and all developing countries, where industrialisation has not reached its peak, are supplier of carbon credit. Japan is the largest buyer of carbon credit while India and Brazil are amongst the largest suppliers of carbon credit. Being a developing country, India is exempted from the requirement of adherence to Kyoto protocol. India, however can sell the carbon credits to the developed countries.

Most of the beneficiaries of the carbon trading are those companies that are investing in windmills, Biodiesel, Biogas. Actually by investing in such an alternative non-polluting source of energy, these companies will earn carbon credit in the form of CERs (Certified Emissions Reductions) to the tune they have not polluted the environment. These CERs will be sold by the Indian companies to companies, say in Japan, at market prevailing rate of CERs and make profit. Companies like Torrent Power have started projects, which enhance energy efficiency and in turn have earned CERs points. These CERs will be sold by Torrent Power to companies in developed countries and is expected to earn approximately Rs 200 crores. Several Indian companies are adopting such processes in their production units, which result in earning of CERs. Similarly, companies like Chennai Petroleum,

Jaypee Associates, Grasim Industries, and Gujarat Fluro Chemicals are going to make huge profits through carbon trading.

Carbon trading has brought a huge opportunity for Indian companies. Companies can earn CERs by adopting energy saving and environment protecting methods and in turn can earn huge incomes by selling them. This opportunity will not exist forever for Indian companies. Once India is accepted as an industrialised country, she would have to adopt strict emission norms like other industrialised countries of the world and India may turn into a net buyer of carbon credit from other developing countries when that happens.

Kyoto Protocol And The Future Of Carbon Trading

President Vladimir Putin’s announcement at the world climate change conference held in Moscow late last month that Russia was still undecided about acceding to the Kyoto Protocol (KP), has undoubtedly come as a blow to those who were hoping for its quick implementation. For with Russia accounting for 17.4% of greenhouse gas emissions at 1990 levels, its accession to the treaty would have allowed it to cross the crucial goal of 55% reduction in emission levels required for it to enter into force.

While Russia’s decision may or may not spell the end of the KP, it may, however, delay its implementation. For developing countries like India, which belong to the category of non-Annexe I countries, and hence are not required to cut their GHG emission levels, it could mean that that their potential of earning lucrative projects through clean development mechanism projects as defined in the KP could be affected.

One of the most important CDMs that are emerging is the system of carbon trading, which allows the development of a market wherein carbon dioxide as well as carbon equivalents, ie, other greenhouse gases like methane, can be traded between participants. The participants could be countries or companies. Though the political and institutional framework for carbon trading is yet to develop, it is generally believed that a potentially large and lucrative global market for carbon trading could develop by the end of the decade.

How does the system work? Once the KP enters into force, Annexe I countries (developed countries) are required to reduce their average GHG emissions by 5% by 2008-12. A country or company wishing to reduce or meet their emission targets can do so by investing in clean projects, which would contribute towards offsetting their GHG emissions, but would also earn the investor some “credits” which would go towards a net carbon reduction. A typical CDM project would be substituting fossil fuel-based power generation with renewable energy or a project that would improve existing energy efficiency levels. Or, as in India, by investing in forestation or community tree planting projects, called “carbon sinks”.

Currently, carbon trading projects take place within some countries including the US and UK, though recently some trade has also taken place between countries, as well. But the potential for inter-state trade has been estimated at around $2 trillion over the next 10 years. However, for a full-fledged carbon trading market to develop, it would be necessary for the KP to come into force as, according to some experts, trading would only make sense if companies operated under emissions caps set by their governments. Without an overarching regulatory mechanism, the system would at best operate informally, providing no incentive for emissions reductions. That is why Russia’s accession is deemed crucial.

However, according to some environmental experts, even if Moscow decides against coming aboard the KP, there is a way out. As per a clause in Article 20 of the protocol, an amendment to the treaty could be adopted by the parties to the Protocol, preferably by consensus, but if not, as a last resort by three-fourths majority vote of the parties, whereby the goal of 55% reduction in emission levels could be reduced and hence allow the treaty to come into force, which would, in turn, take the pressure off the advocates of the treaty to get the requisite countries aboard.