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  • Published: Nov 28th, 2008
  • Category: Asia
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IEA: Carbon trade needed to get Asia buy-in on CCS

| Sourced From Energy Current |

SINGAPORE: Setting an international financial framework for carbon trade is necessary to encourage the emerging economies in Asia to adopt the carbon capture solutions with the region’s growing dependence on coal, according to the head of International Energy Agency (IEA).

The world depends on Asia for its future economic growth. However, the emerging economies of China, India and Vietnam will look to coal as a cheap and abundant energy source to sustain their growth rates, Nobuo Tanaka said yesterday.

Coal will contribute one third of the 45 per cent increase in the energy demand by 2030, with 97 per cent coming from non-OECD countries. China alone will account for one third of that increase, Tanaka said citing statistics from IEA’s World Energy Outlook 2008.

Most of the increase in demand comes from the power generation sector. A penalty must be placed on carbon emissions to encourage the investment in infrastructure to prepare the power plants for adoption of carbon capture storage (CCS) technology when it is commercially viable by 2020, according to Tanaka.

CCS is probably the single most important technology to achieve a 50 per cent reduction in carbon dioxide emissions by 2030 because of the world’s growing coal dependency, Tanaka said.

Tanaka was speaking at the book launch for IEA’s World Energy Outlook in Singapore. IEA will be working with Singapore’s Energy Market Authority (EMA) and Energy Studies Institute to develop a new chapter dedicated to the Southeast Asia region in the next World Energy Outlook publication.

By Hwee Hwee Tan


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