An Assessment of Carbon Capture and Storage Under EC Competition Law

Abstract

This paper examines the impact of carbon capture and storage (CCS) on competition and EC competition law. Firstly, the state aid framework is analysed as CCS-projects will need subsidisation. Secondly,the impact of CCS on industry structure in the energy sector is analysed. It is concluded that CCS will probably lead to vertical integration and possible foreclosure. These problems can be overcome by an effective third party acces regime, but this is lacking in the legal framework for CCS. The rules on state aid are also considered to provide insufficient guidance.