Volume 23 (2012) / Issue 5
This article describes and assesses the divergent objectives and different conditions for obtaining financial support for CCS demonstration projects, through state aid, contributions from the European Energy Programme for Recovery (EEPR) and New Entrants Reserve (NER) funding. The interplay and possibility of cumulation of the different sources of financing, the question of a minimum financial commitment from the operator and possible required results concerning captured CO2 are given special attention. The analysis attempts to answer to the question whether the total available aid addresses the market failure in a cost-efficient way, without unduly distorting competition and trade.
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