Facing China's Coal Future - IEA
Facing China's Coal Future - IEA
Facing China's Coal Future - IEA
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<strong>Facing</strong> China’s <strong>Coal</strong> <strong>Future</strong>: Prospects and Challenges for CCS © OECD/<strong>IEA</strong> 2011<br />
Japan’s Research Institute of Innovative Technology for the Earth (RITE) and CNPC, Daqing Oil<br />
Field Ltd., Harbin Utilities Co. and Huadian of China. The project started in 2009.<br />
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Multilateral Development Banks<br />
Support for CCS is available from multilateral development banks, but it is limited to small‐grant<br />
financing for technical assistance, project preparation advisory services or long‐term loans and<br />
guarantees. The banks can also play an important role in building conditions that enable<br />
investors and commercial financiers to plan CCS investments.<br />
Asian Development Bank (ADB)<br />
The ADB is active in CCS in a number of areas from technical assistance and capacity building to<br />
project loans. In June 2009, the ADB established a CCS Fund to accelerate CCS demonstrations<br />
with an initial contribution of AUS 21.5 million (USD 23 million) from the Global CCS Institute<br />
(GCCSI). The fund is structured to allow other financing partners to contribute and participate;<br />
however, there have been no additional partners to date. The ADB has proposed to build on this<br />
CCS fund concept with a larger, dedicated USD 5 billion CCS Demonstration Fund (still in the<br />
development stage) to stimulate and provide incentives for CCS demonstration in developing<br />
countries. The ADB also manages the Clean Energy Financing Partnership Facility (CEFPF) to<br />
support clean energy projects in developing countries through grants and loans, through which<br />
funds are available for CCS projects in China.<br />
ADB is providing support to China’s GreenGen project, an IGCC with plans to include CCS in later<br />
stages. ADB issued a construction loan of USD 135 million and a technical assistance grant of<br />
USD 1.25 million to help support IGCC scale‐up and CCS (Phases II and III). GreenGen is expected<br />
to be eligible for carbon credits under the CDM and the ADB is providing technical support to<br />
help with the CDM registration process on the basis that the GreenGen facility will be more<br />
efficient than China’s baseline power plants.<br />
European Investment Bank (EIB)<br />
The EIB maintains a China Climate Change Framework Loan of EUR 500 million that provides<br />
concessional loans to China for efforts to mitigate climate change. While there have been no<br />
projects directly related to CCS, it is a potential mechanism that should be explored further.<br />
The World Bank<br />
In 2010, the World Bank established a CCS trust fund with support from the Government of<br />
Norway (USD 6 million) and GCCSI (USD 2 million) focused on providing technical and capacity<br />
building support for CCS in developing countries. It presently does not have a China‐specific<br />
focus. Another vehicle for CCS is the World Bank’s Clean Investment Funds (CIF), a portfolio of<br />
new funding sources that provides support in the form of highly concessional loans, grants and<br />
risk‐mitigation instruments to developing countries to support investments in low‐carbon<br />
development plans. In order to access CIF funding, a Country Investment Plan is required, which<br />
could include CCS.<br />
Global Environmental Facility (GEF)<br />
GEF is an independent multilateral financial mechanism of the United Nations Framework<br />
Convention on Climate Change (UNFCCC). Jointly implemented by the World Bank, the United<br />
Nations Environment Programme (UNEP) and the United Nations Development Programme