Shell Urges EU To Speed Up Legislation On Carbon Storage Systems

Brussels, Belgium (AHN)- Royal Dutch Shell Plc on Monday called on European Union (EU) governments to fast-track legislation that would give industry players incentives to store carbon-dioxide underground.

The Dutch oil giant is proposing that companies that apply carbon-storage should be able to earn credits in the emissions trading system (ETS). It cited that since there is no incentive yet for companies to adopt the environment-friendly measure, most of them are delaying its implementation, thus increasing the level of carbon dioxide in the atmosphere.

In a speech, Shell chief executive Jeroen van der Veer said there is an urgent need to sign into law an incentive scheme so that companies would use carbon storage as an option in the reduction of carbon dioxide emissions.

According to Shell, the development of carbon capture and storage systems is an integral part of EU's plans to tackle climate change particularly its aim is of limiting average global temperatures to two degrees Celsius above pre-industrial levels.

The oil company's own blueprint unveiled on Monday assumes that carbon dioxide is captured at 90 percent of all coal and gas-fired power plants in developed countries by 2050.

Shell's proposals involves capturing carbon dioxide from gases emitted by the industry, then transporting and storing them underground. Van der Veer warns that failure to provide incentives "could jeopardize Europe's leadership in the fight against climate change".

Shell further warns that delaying the widespread use carbon capture and storage beyond 2020 would translate into an estimated annual rise of carbon dioxide levels in the atmosphere by one part per million.