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While updating building codes often takes time, state governments could incentivize this activity by providing performance-based incentives for jurisdictions that have updated their building codes to encourage the use of captured carbon in building materials. Fuels The markets for low-carbon fuels of all types face similar challenges as they tend to be low-margin, highly standardized, and compete with conventional fuels whose retail prices do not reflect externalities related to climate change. Policies are needed to level the playing field for such fuels in order to realize their potential benefits in terms of energy security and economic growth. Policies that allow either carbon sequestration or recycled carbon as compliance-eligible can help create more demand for these products. For example, the International Civil Aviation Organization decision to allow recycled carbon-based fuels to count as low-carbon fuels has spurred airline interest in these technologies. Similarly, California’s low-carbon fuel standard (LCFS) has gained attention for its focus on reducing the carbon intensity of transportation fuels. The state’s LCFS was amended in 2018 to allow CCS to count toward this standard and again can only help increase demand for the technology. California could broaden its LCFS to include storage through mineralization in construction materials, which would pose no threat of subsurface leakage and therefore require no monitoring of groundwater. In addition, other states might consider changing what qualifies under existing rules to allow materials made using carbon sequestration or with recycled carbon. Chemicals and Plastics Unlike the markets for building materials and fuels, CCU-derived chemicals represent a higher-margin and lower-volume market. It’s useful to think of the “ecosystem” of products that can be made from captured carbon in the same way that most people are aware that petroleum can be used to make chemicals and plastics, as well as fuels. While some carbon utilization chemicals and plastics comply with existing ASTM standards, incentives or use requirements would help grow this market. In Europe, the organization CO2 Value Europe has been engaging governments, businesses, and consumers around this goal. Algae Responsibility for federal algae policy is shared by three Cabinet-level departments and the EPA. Those four agencies (along with the National Science Foundation) coordinate through an interagency work group. DOE’s recent annual research spending through BETO has been in the range of $30-32 million (although only a small portion is spent on carbon utilization research). The public is likely more aware of the role that forests and land management play in mitigating climate change as carbon sinks, so consumer education is needed regarding algae-based products. Also, a regulatory regime that ensures both quality and safety is necessary. As with other sectors, government procurement rules would be a market driver. Federal and state authorities, for instance, could require incrementally increasing use of algae-based products (e.g., soil supplements) for public lands management. CARBON UTILIZATION—A VITAL AND EFFECTIVE PATHWAY FOR DECARBONIZATION 21PDF Image | Carbon Utilization
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