4.4 Government funding support

Governments around the world have provided a range of different types of funding support to CCS demonstration projects. The discussion in this section refers to all direct financial support, including tax credits, not just allocations such as grants. However, it does not quantify the level of revenue support provided under pricing mechanisms such as the EU ETS or the support through electricity pricing adjustments proposed in the UK’s reforms to the electricity market.

The key change to funding arrangements supporting demonstration projects in the past 12 months has been a reduction of nearly US$4 billion due to a more than halving in value of the EU ETS price and the withdrawal of funding from some programs that were developed as part of the stimulus program associated with the GFC during 2008 and 2009.

In total, it is estimated that approximately US$20.7 billion is available to support LSIPs. Approximately 65 per cent of the available funding has been allocated to specific projects (Figure 45).

FIGURE 45 Public funding support commitments to CCS demonstrations by country