CCUS demonstration projects urgently need policy support

Under the background of China's orderly promotion of carbon peaking and carbon neutralization, carbon dioxide capture, utilization and storage (CCUS) has become the focus of the industry
.
During the National People's Congress and the National People's Congress this year, several deputies to the National People's Congress and members of the Chinese People's Political Consultative Conference believed that the overall scale of China's CCUS demonstration projects was small and the operating cost was high, and policy support was urgently needed
.

Kong Fanqun, deputy to the National People's Congress and assistant to the general manager of Sinopec Group, said in an interview with reporters that China's CCUS project is currently in the stage of industrial demonstration.
CCUS technology research and development application and industrialization development policy support
.
The first is to incorporate CCUS into the carbon trading market as soon as possible, to clarify the carbon emission rights and carbon trading prices of enterprises, to reduce corporate costs and improve corporate profits
.
The second is to include CCUS in the category of major national low-carbon technologies, and explore the establishment of special support funds for CCUS technology
.
The third is to refer to the development path of the new energy industry, formulate relevant fiscal and taxation preferential policies, and promote the large-scale deployment and commercial development of CCUS
.

Liu Hongguang, member of the National Committee of the Chinese People's Political Consultative Conference and chief consultant of CNOOC Tianjin Chemical Research and Design Institute, said in an interview with reporters that CCUS technology is an important technical path for low-carbon utilization of fossil energy in China
.
He suggested establishing a CCUS demonstration project development fund to speed up technology research and development, especially to provide greater direct financial support for the construction of offshore CCUS demonstration projects; establish and improve CCUS fiscal and taxation support policies, provide credits for investment in special equipment for CCUS projects, and update the Enterprise Income Tax Preferential Catalogue for Special Equipment for Environmental Protection, which includes special equipment for the CCUS industry chain into the scope of preferential treatment; improves the commercialization model of CCUS, promotes CCUS to enter the carbon emissions trading market, and mobilizes the active participation of enterprises
.
In addition, he also suggested that relevant departments establish a local approval and supervision system for CCUS projects to create favorable conditions for the upcoming large-scale demonstration projects
.

During the two sessions this year, Ma Yongsheng, a member of the National Committee of the Chinese People's Political Consultative Conference, chairman of Sinopec Corp.
and secretary of the party group, submitted a proposal on "accelerating the development of the CCUS industrial chain"
.
He said that China's CCUS is in the stage of industrialization demonstration, which is comparable to the overall international development level, but some key technologies lag behind the international advanced level.
The potential for onshore storage in different regions is quite different, and the cost is high.
It is urgent to speed up the pace of development and form an effective The industrialized and large-scale economic utilization
.
To this end, he proposed to strengthen the top-level design of the CCUS industry, strengthen key core technology research, promote the demonstration and commercial application of the CCUS industry chain, accelerate the planning and layout of the CCUS pipeline network and the construction of cluster infrastructure, and improve the fiscal and tax incentive policies and legal and regulatory systems
.

Cai Qingfeng, member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the Tianjin Municipal Committee of the Revolutionary Committee of the People's Republic of China, submitted a proposal to "propose to explore the formulation of preferential tax and subsidy incentive policies for China's CCUS industry"
.
"Under the carbon neutrality goal, we must fully consider the industrial structure and the emission paths of key emission industries, and focus on the emission reduction needs to study and judge the technical emission reduction contributions of carbon capture and storage and direct air capture in different industries.
CCUS incentive policies should be introduced
accordingly.
” In Cai Qingfeng’s view, high-emission industries such as power generation, steel, cement, and chemical industries should be allowed to provide tax deductions for enhanced oil recovery (EOR) and geological storage projects.
A credit is calculated based on the amount of the property, allowing taxpayers to take a credit from their corporate income tax liability
.
At the same time, it is necessary to determine the price guarantee mechanism and adjust the fluctuations of market prices and contract prices in a timely manner
.
Given that the equipment required for the CCUS project is highly specialized and the initial investment is large, he suggested that special subsidy should be given to the procurement, renovation and upgrading of equipment and equipment related to the promotion of large-scale CCUS demonstration and industrial cluster construction
.