REDUCING GREENHOUSE GAS EMISSIONS: FROM A GLOBAL PERSPECTIVE  TO A COST ASSESSMENT OF CARBON CAPTURE IN THE ARCTIC

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Alina A. Cherepovitsyna1, 2

1Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Sciences, Apatity, Russia, iljinovaAA@mail.ru, a.ilinova@ksc.ru, ORCID 0000-0001-5168-0518

2Environmental Industrial Policy Center, Mytishchi, Russia

Abstract. In light of the escalating climate crisis, various strategies for reducing greenhouse gas (GHG) emissions, including carbon capture, utilization and storage (CCS) technologies, are gaining importance in the development of the energy and industrial sectors. While CCS technologies have several advantages, their global deployment faces considerable challenges. The purpose of this study is to analyze both the problems and prospects of implementing CCS chains, including within Russia’s industrial sector. It also provides a cost assessment of carbon dioxide (CO2) capture at a coal-fired power plant, using the Apatity power plant in the Murmansk region as a case study, and proposes measures to enhance the economic feasibility of such projects. The essence and the role of CCS in industrial decarbonization are examined, and key prerequisites for the development of such technologies in Russia are identified. Given the critical importance of reducing GHG emissions in the Arctic and the crucial role of coal in Russia’s energy mix, the study calculates the Levelized Cost of Electricity (LCOE) for integrating CO2 capture at a coal-fired power plant and estimates the cost per ton of avoided emissions. The analysis reveals that these costs remain high, necessitating the exploration of mechanisms to ensure economic feasibility, some of which are proposed in this study. The results of conceptual modeling and economic evaluation confirm that general regulatory measures, such as a tax on GHG emissions, are insufficient to significantly impact project economics. However, targeted support mechanisms that enhance project revenue could improve viability, albeit at a substantial cost to the state. The novelty of this study lies in its development of a conceptual framework for CCS deployment in industry, its cost estimates, and its formulation of a justified set of policy measures to ensure economic sustainability. The findings offer a foundation for future modeling and economic evaluations of implementing full-cycle CCS projects in the Arctic.

Keywords: emission reduction, greenhouse gas, carbon dioxide capture, cost assessment, Arctic, carbon capture and storage, coal-fired power plants

For citation: Cherepovitsyna A. A. Reducing greenhouse gas emissions: From a global perspective to a cost assessment  of carbon capture in the Arctic. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2025, no. 2, pp. 148–163. doi:10.37614/2220-802X.2.2025.88.010.

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