10-11-2012, 04:38 PM
Carbon Capture and Storage Model Regulatory Framework
model_framework.pdf (Size: 3.21 MB / Downloads: 64)
Introduction
The importance of carbon capture and storage (CCS)
According to the International Energy Agency (IEA) publication Energy Technology Perspectives
2010 (ETP 2010), in the absence of new energy policies or supply constraints, energy-related
carbon dioxide (CO2) emissions in 2050 will be twice 2007 levels. This is due primarily to
increased fossil fuel demand and a rise in the carbon intensity of primary energy. The ETP 2010
BLUE Map Scenario provides a least-cost strategy for reducing projected 2050 greenhouse gas
(GHG) emissions to half 2005 levels; this is vital for stabilising CO2 atmospheric concentration
below 450 parts per million (ppm)1. It concludes that, in order to achieve the required
emissions reductions in the most cost-effective manner, carbon capture and storage (CCS) will
need to contribute around one-fifth of total reductions in emissions by 2050. Importantly, the
BLUE Map results demonstrate that if CCS technologies are not deployed, the overall cost of
reaching the required emissions reductions rises by 70%. CCS is therefore an essential part of
the technology portfolio needed to achieve deep reductions in global emissions.
Importance of regulating CCS activities and current status
The projected level of expansion and scale-up of CCS technology raises a number of regulatory2
issues associated with, among other things, ensuring the protection of public health, safety and
the environment, and the effective stewardship of CO2 storage sites over the long term. As such,
efforts to demonstrate the technical, safety and environmental viability of commercial-scale CCS
projects must be accompanied by parallel regulatory developments. This provides assurance
that projects will proceed safely, and that CO2 stored will be permanently contained. The
implementation of appropriate regulatory frameworks for CCS is also required to provide
certainty regarding the rights and responsibilities of relevant stakeholders, including relevant
authorities, operators and the public. Furthermore, regulations are required to: underpin
performance and associated incentive schemes; support commercial transactions relating to
CCS operations; and build public confidence in, and acceptance of, the technology.
Governments around the world have started to amend existing resource extraction or
environmental impact frameworks to allow early CCS demonstration projects to move forward.
Dedicated regulatory frameworks to facilitate the large-scale commercialisation of CCS over the
longer term are simultaneously being developed in a number of countries and regions. For
example, Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009
on the geological storage of carbon dioxide (EU CCS Directive) establishes a regulatory
framework for the geological storage of CO2 within the European Union. Australia has enacted
comprehensive state and federal CCS regulatory frameworks; the United States, Canada,
Norway and Japan are also currently developing frameworks.
Target audience
Given the purpose of this Model Framework (Section 1.2.1), the primary target audience for this
document is countries that are currently developing, or considering developing, near-term
regulatory approaches for CCS demonstration or comprehensive regulatory frameworks for largescale
commercial CCS deployment. This Model Framework is particularly aimed at large
developing countries that have a good potential for CCS deployment. Certain countries and
regions have advanced beyond the point where this document is likely to provide great assistance
to their CCS regulatory development processes. It is these countries and regions whose work to
date provides the foundation for this Model Framework. This document is not intended to bring
into question regulatory approaches adopted in existing CCS regulatory frameworks.
Model Framework development process
This Model Framework has been prepared under the supervision of an Advisory Committee
made up of key CCS stakeholders, including various governments, industry bodies and nongovernmental
organisations. The Advisory Committee was assembled to include representatives
from countries and regions that are well advanced in developing CCS regulatory approaches, as
well as representatives from countries that may be interested in using the Model Framework to
guide the development of their regulatory frameworks for CCS. Entities represented in the
Advisory Committee are included in Table 2.