Member Article

Low carbon technologies dependent on policy

New research from the Stockholm Environment Institute explains why recent progress in developing and implementing low carbon technology is fragile.

According to the Energy Roadmap adopted by the European Commission, low carbon technology will be vital to achieve the goal of decarbonised Energy systems by 2050.

Research focused on two key low-carbon technologies: solar photovoltaics (PV) and carbon capture and storage (CCS).

Support to reduce costs, improve performance and broaden deployment need to come from policy, the report suggests.

A large global solar PV industry has emerged off the back of feed-in tariffs in Europe, however these subsidies are now being adjusted.

For growth to continue at a sustainable level, policy-supported markets have to emerge in other areas, although there is some controversy over artificially created state-markets.

Annika Varnås, researcher at Stockholm Environment Institute, and lead author of the report said: “Great strides have been taken in the industrial development of low-carbon technologies.

“In particular, developments in solar photovoltaics have been remarkable. However progress has been dependent on market pull policies, such as subsidies, particularly from Germany.

“Support from more countries is needed, and investment in research and development must be increased, if recent gains are to be consolidated and sustained.”

From 2005-2009 there was significant interest in carbon capture and storage from the business and policy spheres, largely generated by EU policy ambitions.

Development has recently slowed as companies appear less willing to invest in large-scale demonstration projects.

Jesse Fahnestock, Climate Policy Advisor to the 3C initiative, said: “Industry has recognised that CCS will be needed in any ambitious climate mitigation scenario.

“But as this new report shows, the hurdles to investment remain too high. Both the EU and the United States have committed billions to support the demonstration of CCS, but many important projects are being withdrawn as private investors reconsider the business risks.

“Without increased commitment from policy-makers, both in terms of financing and legislation covering underground storage of carbon, the timetable for CCS development will slip.”

Overall, the report highlighted the need for global collaboration to progress scalable sustainability.

Current national “green growth” strategies have managed to shore up the wider global climate regime, but now there is a need for global policy reach.

This was posted in Bdaily's Members' News section by Tom Keighley .