*3.2. Carbon Capture and Storage (CCS)*

Achieving long-term economic growth in the ASEAN will involve the continued use of fossil fuels. Increasing demand for coal is expected to cause a rise in emissions around 66% by 2040 [8]. How can the ASEAN region continue to use fossil fuels to accelerate economic growth without hurting the environment? CCS offers a viable pathway to use cheaper energy sources such as fossil fuels while minimizing their environmental impacts, as the technology can prevent around 90% of CO2 from entering the atmosphere by capturing the emissions produced from fossil-based electricity generation and uses. CCS technology also enables producing clean hydrogen from fossil fuels as the emitted carbon gets captured and geologically stored. Almost all of the world's hydrogen is sourced from gas, coal and the production of clean hydrogen using CCS technology and can be more cost-effective than producing clean hydrogen from renewables using electrolytes [7]. If combined with renewable biomass, CCS allows carbon dioxide to be taken out of the atmosphere and is carbon-negative.

Southeast Asia provides good opportunities for harnessing the CCS technology as the region has plentiful geological storage resources. Countries like Indonesia, Vietnam, Philippines and Thailand have 54 gigatons of storage capacity [36], which reflects that the region has sufficient capacity to conceal carbon dioxide. However, countries in the ASEAN region are developing CCS at different speeds. For instance, CCS technologies have gained much attention in Singapore across both the public and private sectors since 2017. Indonesia is also considering the development of large gas projects with high CO2 concentrations, even though there is a need to further codify the CCS legal framework. Malaysia, on the other hand, is focusing on the CCS development in the power and oil/gas sectors by undertaking capacity development and storage assessments alongside running legal and regulatory workshops. The Asian Development Bank (ADB) has also been promoting carbon capture, utilization and storage (CCUS) in Asia since 2009 [37]. The economic analysis by Asian Development Bank (ADB) showed that natural gas processing and power plants are the best capture source, as it is the lowest-cost option for carbon capture and storage in Southeast Asia [38]. However, the development and deployment of CCS in the ASEAN region need to overcome significant challenges such as generating investments, attracting climate financing, regional and international collaboration as well as establishing regulatory frameworks for CO2 storage. An effective stakeholder engagement, especially through a smooth public dialogue could enhance carbon capture and storage development, which could increase the commercial viability.
