Some experts feel the result of the policy will be to effectively mandate Integrated Gasification Combined Cycle (IGCC) coal gasification technology which produces a purer waste stream to extract the CO2 from. IGCC is commonly seen as one of the few realistic approaches to effectively capture carbon dioxide. It also has the advantage of reducing NOx and sulfur dioxide emissions to be more in line with those from a natural gas-fired power plant. The best way to actually sequester the captured carbon dioxide is proving to be far more contentious.
Analysis: Reduced emissions and easier carbon dioxide capture make IGCC attractive (as far as coal-fired power stations go). The technology to sequester this captured carbon dioxide in deep geologic formations is still far from being proven in the long-term though. I don't think pumping carbon dioxide into the ground is really the answer in the same way that pumping crude oil out of the ground isn't either. A better solution is to pursue growing algae for biodiesel with all that carbon dioxide.