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Putting CO2 to Use: Creating Value from Emissions Technical analysis How can CO2-derived products and services deliver climate benefits? The amount of CO2 used in a product or service is not the same as the amount of CO2 emissions avoided. In fact, using CO2 in products or services does not necessarily reduce emissions. The climate benefits associated with a CO2-derived product or service primarily arise from displacing an equivalent product or service with higher life-cycle CO2 emissions, such as fossil-based fuels, chemicals or conventional building materials. Unlike CCS, most CO2 use applications ultimately release the CO2 to the atmosphere (Figure 15). There are five key considerations in assessing the climate benefits of CO2 use: the source of CO2 (from natural deposits, fossil fuels, industrial processes, biomass or air) the type of product or service the CO2-based product or service is displacing how much and what form of energy is used to convert the CO2 how long the carbon is retained in the product (temporary or permanent) the scale of the opportunity for CO2 use. Understanding the potential emissions reductions associated with displacement can be particularly difficult as this can differ depending on location and may change over time (for example, as the transport fuel mix becomes less dominated by fossil fuels). The carbon retention time can also vary per product; in general, the carbon is either permanently stored in the product (building materials) or ultimately released to the atmosphere as CO2 (fuels, chemicals). To provide climate benefits, the use of low-carbon energy is critical and the potential of CO2 use to contribute to climate goals will also depend on how far, and how fast, opportunities can be scaled up. Over time, if global emissions are to reach net-zero, the CO2 used must increasingly be sourced from biomass or through DAC. Such CO2 sources can support a carbon-neutral life cycle for some CO2 use applications and could deliver negative emissions in applications where carbon is permanently stored, such as in building materials. However, in general, these opportunities are likely very limited and must be considered in the context of the product’s entire life cycle. The challenges of quantifying the climate benefits of CO2 use are discussed in further detail in the next section. PAGE | 26 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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