Carbon pricing ‘stick’ may compel oil industry to invest in decarbonisation

SourceEnergy Voice
SectorOil & Gas
CountryGulf

A renowned petro-economist believes carbon pricing will be one of the “sticks” the UK Government uses to compel oil firms to invest in emissions-busting technologies.

Prof Alex Kemp, of Aberdeen University, said the UK’s Emissions Trading Scheme (ETS) could be particularly effective for encouraging investment in carbon capture and storage (CCS), as well as North Sea platform electrification.

But Prof Kemp said the government had to be wary of “carbon leakage”, whereby policies lead to the early decommissioning of oilfields and an increase in imports from countries which are doing less to combat climate change.

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