The Future of Coal under Carbon Cap and Trade

The World Resources Institute (WRI) asserts that carbon dioxide capture and sequestration (CCS) is the only viable near-term solution to curb emissions from the expanding use of coal, particularly in the U.S. and China. While energy efficiency, renewables, and nuclear power are important, they cannot currently offset coal use at the necessary scale. WRI argues that a carbon cap and trade regime is a critical first step to incentivize low-carbon investment, though current legislative proposals likely offer carbon prices too low to offset high capture costs. Consequently, the document calls for increased public funding for research, development and demonstration (RD&D) and additional policy tools to address regulatory and public acceptance barriers.

• Carbon dioxide capture and sequestration (CCS) is identified as the only potentially near-term solution to address the rapid expansion of coal use globally, specifically in the United States and China, and must curb emissions until other alternatives are available.
• Other low-carbon energy sources are deemed insufficient to replace coal in the near future: renewables and energy efficiency cannot deliver the required quantity of energy, nuclear power is limited by cost and public concern, and oil and gas supplies are too concentrated in unstable countries to substitute for coal at scale.
• A carbon cap and trade regime is essential for creating a carbon price to incentivize industry investment in low-carbon technologies and to help government institutions like the EPA and Department of Energy prioritize work plans.
• Current cap and trade legislative proposals are insufficient to drive large-scale CCS investment in the first decade because the estimated carbon prices are too low to offset existing high capture costs.
• To accelerate CCS deployment, the document recommends increasing public spending on climate research, development and demonstration (RD&D), implementing special incentives for technology development, and establishing clear siting regulations.

APA

World Resources Institute (2007). The Future of Coal under Carbon Cap and Trade. https://www.wri.org/publications/future-coal-under-carbon-cap-and-trade

Chicago

World Resources Institute. The Future of Coal under Carbon Cap and Trade. 2007. https://www.wri.org/publications/future-coal-under-carbon-cap-and-trade.

Wikipedia

{{cite press release |author=World Resources Institute |title=The Future of Coal under Carbon Cap and Trade |date=14 September 2007 |url=https://www.wri.org/publications/future-coal-under-carbon-cap-and-trade |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{worldresourcesinstitute2007future, author = {{World Resources Institute}}, title = {{The Future of Coal under Carbon Cap and Trade}}, publisher = {World Resources Institute}, year = {2007}, month = sep, url = {https://www.wri.org/publications/future-coal-under-carbon-cap-and-trade}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }