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Centre for Energy Business and Economics Research
Faculteit Economie en Bedrijfskunde
Centre for Energy Business and Economics Research
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Advisory report for Ministry of Economic Affairs and Climate on design of market for Carbon Capture and Storage

Datum:16 april 2024
cover advisory report
cover advisory report

On request of the Dutch Ministry of Economic Affairs and Climate, Professor of Energy Economics Machiel Mulder wrote an advisory report on the design of the market for Carbon Capture and Storage (CCS). Today the Minister of Economic Affairs and Climate, the Minister of Climate and Energy and the State Secretary for Economic Affairs and Climate sent this report to the Parliament .

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

Based on an extensive number of interviews with various types of stakeholders, a literature review and discussions with colleagues, he formulated five recommendations for the government. These recommendations include the introduction of a regulation of tariffs and access conditions for the transport infrastructure in the short and medium term, the monitoring of market conditions to see when the need for regulation is reduced, the opening of the support scheme SDE++ for storage of carbon outside the Netherlands, reconsidering the position of EBN within the supply chain of CCS, and considering the introduction of risk sharing with the industry.