2011-04-07 ADB Workshop Singapore

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    ADB: Carbon Capture and Storage Financing Roundtable

    April 7, 2011. Singapore.

    Dr. Per Christer Lund, Counsellor Science and Technology,

    Innovation Norway, Tokyo

    Support to CCS Activities inSupport to CCS Activities inDevelopingDeveloping

    CountriesCountries -- NorwayNorway

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    Agenda

    1.1. Norway's motivation for CCS.Norway's motivation for CCS.

    2.2. Domestic CCS projects and initiatives.Domestic CCS projects and initiatives.

    3.3. International supportInternational support

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    Norways global CCS footprint

    Courtesy: www.worldmapper.org

    Share of the worlds population: 0,07 %

    3 x higher CO2-emission per capita than average: 0,21 %13 x higher CO2-emission (oil & gas export): 2,73 %

    Share of the worlds population: 0,07 %

    3 x higher CO2-emission per capita than average: 0,21 %13 x higher CO2-emission (oil & gas export): 2,73 %

    Worlds 2nd largest exporterof natural gas

    Worlds 5th largest exporterofoil

    The petroleumindustry is important forNorway:

    One halfoftotal exports One fourthof GDP

    One third oftotal Governmentincome

    Worlds 2nd largest SovereignWealth Fund USD 400 billion

    Worlds 2nd largest exporterof natural gas

    Worlds 5th largest exporterofoil

    The petroleumindustry is important forNorway:

    One halfoftotal exports One fourthof GDP

    One third oftotal Governmentincome

    Worlds 2nd largest SovereignWealth Fund USD 400 billion

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    The Norwegian Climate Policy

    Political consensus:

    Global target: limit average temperature hike to 2C above pre-industrial level

    Strengthen Norways Kyoto commitment from 1% above 1990-level to 9% below1990 level

    Reduce Norways carbon emission footprintwith 30% within 2020

    Reduction of 15-17 MtonCO2 including forestation

    Norway shall be carbon neutralwithin 2050

    Carbon emission reductions may be domestic/offshore reductions orthroughpurchase ofinternational emission credits

    However the targetis that 50%-65% ofthe reduction shall be domestically

    White Paper No. 34 (2006-2007) On Norwegian Climate Policy, published on 22 June 2007Agreement on the White Paper between the government parties and three opposition parties (Klimaforliket), signed 17 January 2008

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    5

    Howto getthere?

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    Norwegian CCS projects

    Technology Center Mongstad

    0,1 m ton/yr, 2011

    1,4 mill ton/yr, 2016-18

    Sleipner NG reinjection

    1 million ton/yr since 1996

    Snhvit LNG

    0,7 mill ton/yr, 2007

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    The Norwegian CO2 Capture Research

    Structure

    The Gas Technology Fund2 billion NOK (350 mill. $)

    The Technology Research Programme CLIMITThe Technology Research Programme CLIMIT~30 MUS$ / yr~30 MUS$ / yr IndustryIndustry

    Project SupportProject Support

    Research Innovation Demonstration Commercialization

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    International climate and forestation

    support

    Positions in the 2010 state budget:

    Increase the support to climate and forestation initiativeswith 110 MUS$ to 370 MUS$ in 2010.

    Support projects with fast and cost-effective reduction in

    emissions

    Establish mechanisms to regulate emissions in aninternational agreement.

    Continue ongoing projects:

    Adaptation and clean energy in Africa, Central America

    Cooperation with China, India, Indonesia and South Africa

    Support research, professional cooperation, industry on clean energy;green development and CCS.

    Operationalize initiatives for climate and clean energy; through UN anddevelopment banks.

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    Multilateral activities

    Norway supports a range of multilateral climate-and environment protection initiatives:

    UN HABITAT: (25MUS$)

    UN Environment Program: (15MUS$)

    UN Development Program: Largest contributor 2009 (250MUS$)

    Global Environment Facility (GEF): (10MUS$)

    REDD++ (deforestation): (4 260 MUS$ - 2010-2012)

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    SupporttoNGOs CCS initatives

    Bellona: Most influential NGO in Norway; promoter of CCS since 1993.

    BEST: international partnership for industry, govt. to acceleratedevelopment and deployment of CCS.

    Govt. support of 170,000 US$ (2010)

    Zero Emission Resource Organization (Zero):

    Norwegian Environment foundation focus on emissionsreduction

    Support to international work of 150,000 US$ (2010)

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    International agreements

    Norway presses for inclusion of CCS in the CleanDevelopment Mechanism

    Political breakthrough in Cancun; procedures andmodalities to be developed (UN FCCC)

    Supports the EU CCS financing scheme: Period 2009-2014

    Norways contribution 160 M

    Focus on large-scale projects; Poland prioritized country.

    Int. agreements: OSPAR and London-conventions on CO2 storage

    North Sea Basin Task Force: storage in the North Sea

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    CCS bilateral projects

    China: bilateral MoU on environmentcooperation.

    Increased focus on climate issues

    UNDP-led project on regional climate action plans inChina

    Pledged 9.3 MUS$ support to NZEC (Near Zero EmissionCoal) partners with EU and UK.

    South Africa:

    Support of CCS-center

    200,000 US$ per year over 5 years (2009 2013)

    Sasol (chemical company) signed up as partner inTechnology Center Mongstad

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    Supporttointernational organizations

    Carbon Sequestration Leadership Forum (CSLF) 23 countries; including the largest emitters

    Norway support to CSLF Capacity building fund 0,85 MUS$

    Norway leads the Technical Group

    Member of the Global CCS Institute

    EUs Zero Emission Platform (ZEP)

    Stakeholders include industry/commerce; government andNGOs

    Norway is active member

    International Energy Agency (IEA)

    Hosts Greenhouse Gas International Summer School atSvalbard

    Support 85,000 US$ (2010)

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    Supportto global CCS funds

    World Bank CCS Trust Fund: Established 2009

    Norway as largest contributor: 6 MUS$

    Added another 3 MUS$ in 2010

    12 developing countries getting support

    UN Industrial Development Organization

    Global CCS Industrial Roadmap

    Norways support 0.3 MUS$

    Focus on large emission points for industry in developingcountries

    ADB CCS Capacity fund:

    Norwegian support of 6 MUS$

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    Summary

    Norway is part of the problem of global climate

    change.

    Norwegian government has strong commitment to be

    part of the solution Reduce Norways carbon footprint domestically

    Fund research and development of CCS technologies

    Fund pilots and fullscale carbon capture projects (TCM)

    Support and promote industry engagement in CCS

    Norway is world-leader on CCS technology; Sleipner, Mongstad,

    Snvit projects; R&D clusters at SINTEF and other research

    clusters

    Norway is promoting CCS on global arenas; politicalmeetings; media; summits.

    Norway is supporting and actively participating in theimportant CCS intuitions and organizations.

    Norway is a significant financial supporter to global CCS

    initiatives.

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    Foreign minister Jonas Gahr Stre:High-Level Conference on Climate Change and Technologyin Bergen, Norway, on 27-28 May 2009

    1. A comprehensive approach to reducing CO2 emissions

    must include CCS.

    2. Sustainable economic growth is possible, and CCS is a key

    step in the transition to a low-emission society.

    3. More full-scale demonstration plants, more R&D, and a

    major scaling up of present CCS efforts are needed.

    4. The right framework conditions must be put in place to

    stimulate widespread CCS deployment.

    5. Transport and storage projects must minimize risks of

    negative impacts on the environment and human healthand safety.

    6. Private sector companies have a particular role to play in

    making CCS commercially viable.

    7. CCS must be accessible for developing countries.