Overview
Energy Intelligence quoted Hunter Johnston in an October 11 article titled "US-China: Trade War Hits Climate Goals." The article discusses how trade tensions are putting pressure on industries critical to meeting global emissions reductions goals. According to the article, the trade war may also be ensnaring nascent carbon capture, utilization and storage (CCUS) technology – widely viewed as necessary to keep a lid on greenhouse gas emissions and something that is a priority of the Trump administration. Greenfield CCUS projects rely on steel and other building materials that are impacted by the trade war.
Johnston, who works on carbon capture projects including the Lake Charles Methane project, says that means that for big industrial projects that integrate CCUS, tariffs and trade policy in general are creating uncertainty around the costs of the project, complicating things as developers approach financial close. "The tariff applies when the stuff comes over the border, and you might not see the project for another two years. So what's the tariff going to be in two years? It's very hard to predict; you never know from one month to another."
The full article can be read at Energy Intelligence (subscription required).
