Calls to mitigate the social risks from acute job losses are colliding with a longer-term imperative: public sector investment will be needed to accelerate the development of climate change technology.
To his credit, UK prime minister Boris Johnson is not deterred. The Conservative Government is ramping up green energy policies, emphasising hydrogen fuel, carbon capture and storage, and wind farms.
Reputation risk remains high for investors not prepared, or unwilling to reflect ESG principles in their portfolios. Cambridge University has relented, and finally (after a long campaign) agreed to eliminate fossil all fuel investments – by 2030. But performance is a major consideration too. The US S&P 500 energy index has fallen 49.8% so far this year.
The pressure will grow on all companies, from technology to industrials, to cut emissions. For many, particularly in the ‘hard to abate’ sectors, CCS and CCUS will have an important role to play.
The IEA warned last week that without proper public sector investment in CCS and CCUS, it will become impossible to meet climate change goals. Carbon captured from the atmosphere needs to rise from the current level of 40m tonnes (annual) to 800m tonnes by 2030. The policy emphasis today by Boris Johnson on carbon capture will be welcomed by the IEA.
Summary
• Boris looks beyond Covid
• US currently leads in CCS and CCUS
• But UK and Norway pivotal and pushing hard
