Greenhouse gas mitigation in a carbon constrained world - the role of CCS in Germany

In a carbon constrained world, at least four classes of greenhouse gas mitigation options are available: energy efficiency, switching to low or carbon-free energy sources, introduction of carbon dioxide capture and storage along with electric generating technologies, and reductions in emissions of non-CO2 greenhouse gases. The contribution of each option to overall greenhouse gas mitigation varies by cost, scale, and timing. In particular, carbon dioxide capture and storage (CCS) promises to allow for low-emissions fossil-fuel based power generation. This is particularly relevant for Germany, where electricity generation is largely coal-based and, at the same time, ambitious climate targets are in place. Our objective is to provide a balanced analysis of the various classes of greenhouse gas mitigation options with a particular focus on CCS for Germany. We simulate the potential role of advanced fossil fuel based electricity generating technologies with CCS (IGCC, NGCC) as well the potential for retrofit with CCS for existing and currently built fossil plants from the present through 2050. We employ a computable general equilibrium (CGE) economic model as a core model and integrating tool. (C) 2008 Elsevier Ltd. All rights reserved