Machiel Mulder writes advisory report on the market for carbon capture and storage for the Ministry of Economic Affairs and Climate

At the request of the Dutch Ministry of Economic Affairs and Climate Change, Professor of Energy Economics Machiel Mulder wrote an advisory report on the design of the market for carbon capture and storage (CCS).  This week, the Minister of Economic Affairs and Climate, the Minister of Climate and Energy and the State Secretary for Economic Affairs and Climate  sent the report to the Parliament .

In his report, Mulder analyzed the extent to which the current market design is appropriate given the characteristics of the CCS market, both now and in the future. He also analyzed the extent to which market parties can be expected to invest sufficiently in capture, transport and storage to meet policy objectives and the extent to which public interests are guaranteed. And, if investments and/or public interests are insufficiently ensured, what kind of market design measures would be needed?

Recommendations for the government

Based on a large number of interviews with different types of stakeholders, a literature review and discussions with colleagues, Mulder formulated five recommendations for the government:

1. The introduction of a regulation of tariffs and access conditions for the transport infrastructure in the short and medium term;

2. the  monitoring of market conditions to see when the need for regulation is reduced;

3. the opening of the Sustainable Energy Production and Climate Transition Incentive scheme (SDE++) for carbon storage outside the Netherlands,

4. reconsidering the position of Energie Beheer Nederland (EBN, a private limited company, with the Dutch state as its sole shareholder) within the CCS supply chain;

5. considering the introduction of risk sharing within the industry.

Scientific Climate Council

In March of 2023, Mulder was appointed as member of the Scientific Climate Council (Wetenschappelijke Klimaatraad, WKR). This independent advisory council advises the government on climate policy. The WKR is a multidisciplinary board consisting of ten members with diverse backgrounds, including Mulder and two other University of Groningen professors: Linda Steg (Faculty of Behavioural and Social Sciences) and Wouter Peters (Faculty of Science and Engineering).

Questions? Please contact Machiel Mulder.