What is the regulatory environment for carbon capture?
In general, carbon capture projects are often initiated in response to government regulations, mandates, and incentives. However, there are currently no federal regulations related to carbon dioxide emission in the U.S. Other factors influencing a decision to initiate a carbon capture project may include a desire to increase familiarization with new technology, to evoke positive public relations, and/or to mitigate concern about environmental impacts of greenhouse gas emissions. The primary reason listed by carbon sequestration project developers is the presence of a regulatory emission reduction, cap and trading programs, or a need to avoid financial risks associated with the possibility of future regulations.
