Comprehensive Research

Economic benefits and fiscal tax policies of CO2 capture, utilization and storage

  • Haifeng WEI
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  • Development Planning Department, Sinopec, Beijing 100000, China

Received date: 2024-02-19

  Online published: 2024-05-07

Abstract

With the convergence of global carbon neutrality goals, the CCUS industry has ushered in new opportunities after a century of development. Developed countries in Europe and America have vigorously supported the research and development of CCUS technologies and the promotion of engineering demonstrations through measures such as carbon markets, carbon taxation systems, carbon subsidies or rebates, and carbon border adjustment mechanisms. The embryonic form of CCUS industrialization has emerged, with broad market prospects. Compared to foreign countries, China's CCUS-related policies and regulations are mainly guiding in nature, with the scale of the carbon market and carbon price levels still at relatively low levels, urgently requiring strengthened research on CCUS policy and regulatory formulation and supporting measures. Therefore, we define the input-output framework of CCUS projects, sort out the economic benefits and fiscal taxation policy environment of typical CCUS projects in the world, and put forward suggestions on the development of CCUS industrial benefits in China. The analysis shows that foreign projects generally receive direct subsidies from the government, with capture costs accounting for 70% to 80% of operating costs. Environmental costs mainly include environmental risks after CO2 leakage and additional emissions generated after installing CCUS. Output benefits include direct and indirect benefits, and under conditions where gas prices exceed 200 RMB per ton, CO2 enhanced oil recovery projects are difficult to achieve economic benefits. In conjunction with a comparative analysis of the current status of CCUS policies and regulations at home and abroad, suggestions for the development of CCUS industrialization are proposed, such as accelerating the pace of technological research and development iterations, increasing the construction of CCUS cluster hub centers, and promptly issuing progressive and combined CCUS policies and regulations..

Cite this article

Haifeng WEI . Economic benefits and fiscal tax policies of CO2 capture, utilization and storage[J]. Petroleum Reservoir Evaluation and Development, 2024 , 14(2) : 277 -283 . DOI: 10.13809/j.cnki.cn32-1825/te.2024.02.013

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