Capturing carbon from coal is 'essential' for climate – Stern, Soros

London, 5 July: Technology to capture the carbon dioxide emitted from coal-fired power stations will be crucial in ensuring climate stability, according to economist Nicholas Stern and George Soros, a financier and philanthropist.

Soros, speaking at the London School of Economics yesterday, said: "There's one problem that, unless we deal with it very soon, will make all other efforts pointless. That's the increasing use of coal for electricity generation. It's the cheapest and the most attractive [fuel] from an energy security point of view, and the US and China have extensive resources."

Carbon capture and storage (CCS) technology, which has yet to be proven on a large scale, has the potential to cut emissions from burning coal by up to 95%. Carbon emissions must be minimised if climate change is to be averted and clean coal technologies are seen as one possible solution. But Soros noted: "[CCS] is not getting the kind of attention it needs."

Nicholas Stern, author of the influential Stern Review on the economics of climate change, said: "CCS from coal is the missing link in the story which brings economic growth, climate and energy security together."

Stern noted that generating power with CCS will always be more expensive than doing without it, so there must be some market instrument – such as a cap-and-trade scheme or carbon tax – to provide an incentive to employ CCS.

* The July/August edition of Environmental Finance will include features on the financing of and liabilities involved with CCS. To subscribe, click here