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As markets for CO2 develop, economic approaches to linking sources with utilization may become clearer. State and local governments may consider establishing Carbon Opportunity Zones to create incentives for co-location of utilization with higher-purity CO2 sources. Meanwhile, both technology advancements and experience—development of “nth of a kind” practices— should lead to the deployment of larger pilots and commercial projects. Another broad incentive would be for more states to adopt a Clean Energy Standard (CES) which would recognize abated fossil power generation as a form of clean energy alongside renewable energy. A CES provides a market incentive for electric utilities to capture CO2, which in turn provides a supply for the CO2 market. Finally, the greatest potential variable for all carbon management projects is whether governments (state and/or federal) may impose a price on carbon, and how such rules would be implemented. Carbon pricing is beyond the scope of this paper, but it should be noted that forms of carbon pricing already play a role in some CO2U markets (e.g., California’s LCFS). Implementing carbon pricing would ensure that building materials, products, and fuels reflect the true environmental and climate costs of competing alternatives. LONGER-TERM ACTIONS This report deliberately avoids suggesting policy actions in a timeframe beyond 2030 because, as described above, the consensus of contributors that significant progress on all fronts must be evident by 2030, and policies and action should aim for growing CCU sectors during that timeframe. Policymakers at all levels of government must be prepared to implement a portfolio of interconnected policies if CCU is to contribute both to economic development and to greenhouse gas reduction. CARBON UTILIZATION—A VITAL AND EFFECTIVE PATHWAY FOR DECARBONIZATION 25PDF Image | Carbon Utilization
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