This report “Triggering Investment in First-of-a-Kind and Early Near-Zero Emissions Industrial Facilities” by the Center on Global Energy Policy explores financial policy instruments that can make First-of-a kind (FOAK) near-zero emission industrial facilities viable. The report concludes that such FOAKs can then be used as low-risk, replicable models for rapidly transforming the “hard-to-abate” sectors and ultimately facilitating a transition to full net-zero emissions for industry as a whole.
The takeaways of the report are:
● There is no one-size-fits-all policy instrument to trigger FOAKs — policymakers seeking to encourage such projects may instead want to consider packages of policies at various stages of a project’s lifetime that account for both the climate in which that project operates and any risks that could impinge on its success.
● Equitable financial support by governments across industrial sectors and products can be transformational for establishing FOAK projects and getting them on the ground at the lowest possible cost, but in providing that support, governments will need to weigh relative emissions reduction potential, technological readiness, and the cost premium above existing market prices to maximize effectiveness and efficiency.
● A clear and consistent long-term strategy and policy signal can provide the certainty needed to trigger broader investment in FOAK facilities.
● Long-term policy strategies to transform the most carbon-intense sectoral processes can be politically and economically maintained.
Access the complete report here
