Carbon capture is essential in addition to renewables and efficiency gains if we are to achieve the Paris Agreement targets1.
Global carbon pricing of $200 per ton by 2050 will be required to limit global warming2.
European Union Emissions Trading System (“EU ETS”) carbon pricing has risen to €50 /t and set to increase to €100 /t by 2025.
45Q tax credits in the U.S. of US$50/t by 2026 under existing legislation and proposed CATCH legislation would increase the 45Q tax credit to $85/t once passed4.
Canadian carbon pricing is legislated to rise to C$50/t next year increasing to C$170/t by 2030.
Carbon border taxes (carbon leakage) – carbon tariffs will be imposed on imports from countries without carbon pricing to enforce a normalized global carbon price6.
(1)Source: IEA Net Zero by 2050 Report; (2)Source: IEA carbon prices to limit global warming to within 1.5°C as per Wood Mackenzie); (3)Source: Coordinated Action to Capture Harmful Emissions Act; (4)Source: IEA Carbon capture use and storage by 2050; (5)Source: EC Brussels, 14.7.2021 COM(21) 564 fi