OGCI and partners, the European Roundtable on Climate Change and Sustainable Transition (ERCST), HFW and Carbon Counts, conducted a feasibility study to analyze the potential for new mechanisms to incentivize the geological storage of carbon dioxide through international cooperation in the context of Article 6 of the Paris Agreement.
The study explores how carbon storage units (CSUs), measuring geologically stored carbon dioxide, can be given a value and recognition using carbon storage obligations (CSOs), which would be required for hydrocarbon supply in the future. These obligations would create tangible and predictable demand for CSUs and unlock a flow of funds to build storage capacity.
The paper suggests that a CCS Club of like-minded countries could cooperate to pilot the CSU approach. It urges further discussion of CSUs and CSOs among inter-governmental organisations (such as the Clean Energy Ministerial) that have the resources, knowledge and interest to explore such solutions in the context of national climate change policy as well as the implementation of Article 6.