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Putting CO2 to Use: Creating Value from Emissions Executive summary as it avoids the cost associated with conventional waste disposal. The CO2 used in building materials is permanently stored in the product, with additional climate benefits derived from lower cement input in the case of CO2-cured concrete. For some concrete products, trials and updating of product standards may be required to support broader deployment. Using CO2 can support climate goals, but with caveats CO2 used is not the same as CO2 avoided. CO2 use does not necessarily reduce emissions and quantifying climate benefits is complex, requiring a comprehensive life-cycle assessment as well as understanding of market dynamics. CO2 use can provide climate benefits where the application is scalable, uses low-carbon energy, and displaces a product with higher life-cycle emissions. Longer term, in a net-zero CO2 emission energy system, the CO2 would have to be sourced from biomass or the air to achieve climate benefits. CO2-derived products that involve permanent carbon retention, such as building materials, can offer larger emissions reductions than products that ultimately release CO2 to the atmosphere, such as fuels and chemicals. Improved understanding and quantification of CO2 use applications and their emission reduction potential is required. To inform future policy and investment decisions, there is a need for robust life-cycle analyses based on clear methodological guidelines and transparent datasets. In recent years, several expert groups have started to develop such guidelines; however, it remains challenging due to the early stage of development of many CO2 use technologies. CO2 use is a complement, not an alternative, to CO2 storage for large-scale emissions reductions. CO2 use is not expected to deliver emissions reductions on the same scale as carbon capture and storage (CCS), but can play a role in meeting climate goals as part of an “all technologies” approach. In International Energy Agency (IEA) scenario analysis with limited deployment of CO2 storage, CO2 use within the energy system increases (including for the production of methanol and synthetic hydrocarbon fuels) but delivers less than 13% of the emissions reductions that would otherwise be provided from CO2 storage. The potential for negative emissions from CO2 use is also very limited. Cultivating early opportunities while planning for the long term The future prospects for CO2 use will largely be determined by policy support. Many CO2 use technologies will only be competitive with conventional processes where their mitigation potential is recognised in climate policy frameworks or where incentives for lower-carbon products are available. Public procurement can be an effective strategy to create an early market for CO2-derived products with verifiable climate benefits, and can assist in the development of technical standards. The market for CO2 use is expected to be relatively small in the short term, but early opportunities can be developed. These early opportunities include building materials, but in some cases also polymers and industrial CO2 use in greenhouses. Industrial areas where low- cost raw materials, low-carbon energy and consumers are located together, and where existing CO2 pipelines can be used to advantage, can provide early deployment opportunities. Further research, development and demonstration (RD&D) is needed. This is particularly for applications that can contribute to a future net-zero CO2 emission economy, including chemicals and aviation fuels derived from biogenic or atmospheric CO2. This should be in conjunction with RD&D for low-carbon hydrogen production. PAGE | 4 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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