CIAB Market & Policy developments 2005/06 - IEA

33. Many companies have announced plans for new coal-fired electricity generating plant
incorporating modern, efficient technology and the potential for carbon capture and
storage. However, appropriate incentives, public funding and/or predictability of
government policy are pre-requisites for these projects to proceed.
34. Accelerating the development, demonstration and commercialization of clean coal
technologies – and the deployment of such technologies around the world – is essential
if the world is serious about stabilizing concentrations of carbon dioxide in the
atmosphere.
35. Although developed countries are responsible for the vast bulk of historical CO 2
emissions, developing countries will be the main source of growth in greenhouse gas
emissions from energy use over the coming decades. Thus it is in the best interests of
the OECD countries to assist developing countries in using coal sustainably by
facilitating the application of current best commercial technologies and by encouraging
participation in international research and development of new coal technologies relevant
to their needs.
36. Investments in clean coal conversion technologies are gaining momentum, particularly in
China, where there is a target of meeting 10-15% of the forecast 450 million tonnes
annual oil demand in 2020 using direct and indirect coal liquefaction plants. Given the
dramatic rise in the price of both crude oil and natural gas and increasing competition for
energy resources around the globe, it is increasingly likely that coal will be used in the
near future as a feedstock for the production of synthetic natural gas, transportation fuels
and chemicals. This development further underscores the need for increased investment
in the next generation of clean coal technologies. In some countries, coal conversion
technologies are viewed as a cost-effective source of concentrated carbon dioxide,
which can be used for enhanced oil recovery purposes as well as to demonstrate the
viability of carbon capture and storage on a large scale.
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