Published 9 January 2024
Given the developments in the US and EU, this paper will discuss the relevant provisions of the IRA and the identified policy responses in the EU with a focus on carbon capture, utilisation, and storage (CCUS). Carbon capture technologies are expected to play a pivotal role in the transition towards a net-zero emissions economy and curtailment of CO2 emissions in sectors where hydrocarbons cannot be efficiently replaced by renewable energy or electrification. The second and third sections of this paper will examine and discuss the relevant IRA provisions generally and specifically in the context of US government support for the commercialisation of CCUS. The fourth section will examine the EU response to the IRA, including the framework for state aid for CCUS technology and projects, and the new industrial framework for critical technologies such as CCUS.
This paper will be part of the OGEL Special Issue on "International Energy and Investment Law Implications of the US Inflation Reduction Act". More information here www.ogel.org/news.asp?key=762