The Political Economy of Carbon Capture, Use, and Storage

Policymakers often overlook the political and economic challenges pertaining to the development and deployment of carbon capture, use, and storage (CCUS), even as they consider CCUS a technological solution to combat climate change. This chapter accordingly draws on a political economy analysis to question this notion, synthesizing five important propositions. We identify the CCUS analysis frames of technology, markets, environment, and society. Two important policy lessons are drawn regarding CCUS best practices: avoiding strategy lock-ins and actively working on alternate energy sources. The chapter concludes that political economy challenges inherent to CCUS may mean that overt reliance on its eventual development may be a high-risk strategy where climate change is concerned. Conversely, the policy goal of achieving a secure energy supply, especially in developing economies, may be well served as CCUS will prolong continued cheaper coal usage instead of abandonment.