GLOBAL CCS INSTITUTE CHIEF IMPACT OFFICER TURAN:
THE COST OF FAILING TO MEET CLIMATE TARGETS WOULD BE HIGHER THAN THE INVESTMENT IN CCS
Interview: Esra YAZDIÇ DEMİR – TTGV Corporate Communications and Media Manager
In climate technologies, all eyes are on carbon capture processes and systems. While countries develop specific strategies to implement their models, they also continue to learn from each other to keep their efforts up to date. CCUS plays a leading role in these processes. In this context, we met with Gülören Turan, Chief Impact Officer at the Global CCS Institute’s London Office.
Emphasizing that government support and incentives are critical for the development of CCS, Turan underlined that the cost of failing to meet global climate targets would be much higher than investing in proven climate technologies like CCS.
What are the obstacles to carbon capture technology? How do you evaluate global climate change commitments?
As an institute, we are witnessing positive global progress in carbon capture and storage. Over the past seven years, project development has accelerated, and with new facilities under construction becoming operational, the existing capture capacity is expected to double. The 2024 CCS project pipeline has reached record levels in terms of both the number of facilities and CO₂ capture capacity.
However, some operational and financial challenges persist. One of the main issues is the lack of a strong business model for CCS in many regions. To transform CCS into a scalable business model, government climate policies and carbon markets need to align more effectively.
Uncertainties in the investment environment, political fluctuations, and inflation-driven cost increases are also significant obstacles. Large infrastructure projects, like consumer goods, are affected by economic conditions. However, we expect these costs to stabilize over time.
Social factors also play a critical role in the success of CCS. Public perception and acceptance of this technology can vary greatly. Effective communication with affected stakeholders, such as local communities, should be an integral part of all projects.
Overcoming the challenges of CCS requires global collaboration. International climate change commitments have been a major driving force for the development and implementation of CCS technology. As governments increasingly recognize the crucial role of CCS in decarbonization and achieving net-zero targets, it has gained more prominence in climate discussions. Leading countries aim to remove barriers to CCS by implementing supportive policies, financial mechanisms, and investment incentives.
For example, in Europe and the United Kingdom, climate and industrial policies have placed CCS high on the agenda. The EU Industrial Carbon Management Strategy, the Net-Zero Industry Act, and the UK’s commitment to invest £21.7 billion in carbon capture, utilization, and storage (CCUS) are among the policy incentives expected to accelerate the adoption of CCS in the region.
Additionally, multilateral government initiatives such as the Clean Energy Ministerial, Mission Innovation, and the Carbon Management Challenge are increasing global efforts on CCS, promoting knowledge sharing, and supporting its development. The Carbon Management Challenge, in collaboration with the European Commission, involves 22 countries and aims to manage 1 gigaton of CO₂ globally through carbon management projects by 2030.
What would be a reasonable carbon price to encourage climate technologies?
Since climate technologies cover a broad spectrum, we prefer not to provide a direct answer to this question. While carbon pricing is an important factor, it is not sufficient on its own.
Costs Have Decreased, Processes Have Accelerated
CCUS technologies are currently quite costly. How feasible is their implementation without government support and incentives?
The costs of Carbon Capture and Storage vary depending on the sector and industry in which they are applied. As an institute, we observe that as CCS becomes more widespread, its costs decrease, and the adoption of new business models such as CCS networks accelerates this process. CCS networks are becoming a preferred application model because they have the capacity to reduce costs by sharing transport and storage infrastructure.
Government support and incentives are critical for CCS development. Comprehensive policy frameworks form the foundation for creating a business model for technologies like CCS. Without such a framework, the private sector may be reluctant to implement CCS at the necessary scale.
A strong policy framework should attribute value to carbon emissions reduction and incentivize CCS through mechanisms such as carbon taxes, carbon trading, or tax credits. Additionally, other incentives and regulations, such as government grants, public procurement, emission regulations, product standards, or carbon buyback obligations, should be implemented.
For example, in the U.S., 45Q tax credits provide a financial incentive for CCS by assigning a monetary value to captured carbon. In other regions, carbon taxes and emissions trading systems are among the tools supporting CCS projects.
Nevertheless, it is important to remember that the cost of failing to meet global climate targets would be much higher than investing in proven climate technologies like CCS. According to reports from the Intergovernmental Panel on Climate Change (IPCC), achieving global climate targets without CCS would be, on average, 138% more expensive.
Commitments Must Be Translated into Action
You highlighted the importance of government policies in carbon capture processes. How do you evaluate Türkiye’s approach to this issue on an international scale?
Although Türkiye’s approach to carbon capture is still in its early stages, some positive developments are noticeable. The Turkish government has addressed CCS within its Nationally Determined Contribution (NDC) and has committed to reducing its emissions by 41% by 2030 compared to the Business-As-Usual (BAU) scenario.
Türkiye has integrated CCS technology into its 2024-2030 Climate Change Mitigation Strategy and Action Plan (CCMSAP). The government is working to create an environment that encourages investment in carbon capture technologies. Positive aspects of the CCMSAP include a commitment to developing a roadmap for carbon capture, utilization, and storage (CCUS), preparing a carbon storage atlas, and assessing Türkiye’s carbon storage potential.
Additionally, examining the potential application of carbon capture technologies in fossil fuel power plants that cannot yet be phased out is also part of the strategy. By working on CCUS for unavoidable emissions, Türkiye aims to encourage private sector investments, establish industrial hubs with CO₂ infrastructure, and support R&D activities to reduce the costs of carbon capture.
Furthermore, the government has announced its transition to carbon pricing and alignment with European Union standards. This sends a strong market signal to project developers and investors, paving the way for CCS projects.
All these measures represent an important first step in Türkiye’s efforts to combat climate change. However, translating commitments into action, public-private sector cooperation, and societal support will be critical for continued progress.
What is the future potential of carbon capture and storage technologies?
CCUS is considered a critical technology in the energy transition process. By 2050, CCUS is expected to play a significant role in three key areas:
- Emission Reduction in Industrial Sectors:
- CCUS provides a critical solution in sectors where carbon emissions are unavoidable, such as cement, steel, and chemicals.
- In sectors where alternative low-carbon production methods are not yet commercially viable, CCUS becomes an essential technology.
- Carbon Removal and Negative Emission Technologies:
- Technologies such as Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS) have the potential to create negative emissions by removing CO₂ from the atmosphere.
- IPCC reports emphasize that large-scale implementation of negative emission technologies is necessary to achieve net-zero targets.
- Carbon Capture in Hydrogen Production:
- CCUS plays a crucial role in blue hydrogen production.
- As the hydrogen economy grows, demand for CCUS will also increase.
Advancements in these areas, combined with policy support and private sector investments, are expected to significantly contribute to global carbon emission reduction goals.
About the Global CCS Institute
The Global CCS Institute is an international think tank dedicated to accelerating the deployment of Carbon Capture and Storage (CCS) technology, a vital solution in the fight against climate change and the journey toward climate neutrality. Headquartered in Melbourne, Australia, the institute has offices in Washington, D.C., Brussels, Beijing, London, Tokyo, and Abu Dhabi.
