20101031-IEA-Carbon_Capture_and_Storage_Model_Regulatory_Framework_130页_3mb

Summary of the IEA Carbon Capture and Storage Model Regulatory Framework

Core Content

The International Energy Agency (IEA) has developed a Model Regulatory Framework for Carbon Capture and Storage (CCS) to address the regulatory challenges associated with the rapid expansion and deployment of CCS technologies. The framework is designed to support governments in creating appropriate national regulations to facilitate the safe and effective implementation of CCS projects, both for demonstration and large-scale deployment.

Main Objectives of the Framework

• Ensure long-term stewardship of CO₂ storage sites.
• Protect public health and the environment.
• Secure the regulatory basis for CCS activities.
• Clarify rights and responsibilities of stakeholders, including governments, operators, and the public.
• Support performance and incentive schemes for CCS.
• Facilitate commercial transactions related to CCS.
• Build public confidence and acceptance of CCS technology.

Key Points of the Document

1. Importance of CCS

• Energy-related CO₂ emissions are projected to double by 2050 if no new policies are introduced.
• The BLUE Map Scenario from ETP 2010 outlines a least-cost strategy to reduce emissions to half 2005 levels by 2050.
• CCS is identified as crucial to achieving these reductions, contributing about one-fifth of total emissions reductions.
• Without CCS, the cost of emissions reductions would increase by 70%.

2. CCS Deployment Targets

• The CCS Roadmap outlines the need for 100 projects by 2020 and over 3,000 by 2050.
• This represents a major technical, financial and regulatory challenge.

3. Regulatory Focus

• The framework primarily addresses storage issues, as they are the most complex and novel.
• It draws on existing frameworks in Australia, Europe, the United States, and other regions to propose key principles for regulation.
• It provides guidance for countries at various stages of regulatory development.

Key Regulatory Issues Addressed

The Model Framework identifies 29 critical regulatory issues, grouped into the following categories:

1. Classification of CO₂

• Defines how CO₂ should be classified under existing laws.
• Includes legal definitions for CO₂ storage.

2. Property Rights

• Clarifies ownership and rights over CO₂ and the subsurface.
• Includes examples from Victoria, Australia and New York, United States.

3. Competition and Preferential Rights

• Addresses potential conflicts between CCS and other subsurface users.

4. Transboundary Movement of CO₂

• Highlights the need for international cooperation.
• Includes examples from the London Protocol and OSPAR Convention.

5. Marine Environment Protection

• Reviews international laws and guidelines for marine CO₂ storage.

6. Incentives for CCS

• Encourages integration of CCS into climate change mitigation strategies.
• Includes examples from EU ETS Directive and US policies.

7. Health and Safety

• Emphasizes the need for occupational health and safety regulations.

8. Environmental Impact Assessment

• Recommends the role of EIA in CCS projects.

9. Third-Party Access

• Discusses the importance of access to storage and transport infrastructure.

10. Public Engagement

• Encourages public consultation and participation in decision-making.

11. Storage Site Exploration and Characterisation

• Covers authorisation, licensing, and site selection.

12. Storage Activities and Inspections

• Details the regulation of storage operations and project inspections.

13. Monitoring, Reporting, and Verification

• Sets out requirements for monitoring and verification of CO₂ storage.

14. Corrective and Remediation Measures

• Defines response protocols for leakage or irregularities.

15. Liability Issues

• Covers liability during and after project closure.

16. Post-Closure Stewardship

• Includes financial contributions and long-term liability provisions.

17. Emerging Issues

• Addresses knowledge-sharing, CCS readiness, biomass integration, and enhanced hydrocarbon recovery (EHR).

Regulatory Milestones

The CCS Roadmap identifies three key regulatory milestones:

1. By 2011: Review and adapt existing legal frameworks to regulate CCS demonstration projects in OECD countries.
2. By 2013: Early-mover non-OECD countries should review their legal frameworks.
3. By 2015: All non-OECD countries with CCS potential should have comprehensive regulatory frameworks.
4. By 2012: Address international legal issues, including transboundary CO₂ transport and international monitoring and verification protocols.

Structure and Use of the Framework

• The framework is not exhaustive and not legal advice.
• It is a general overview of CCS regulation and is intended to assist in developing national regulatory systems.
• It includes Model Text for CO₂ storage, allowing countries to adapt it to their legal systems.
• The framework is designed for countries in the early stages of regulatory development, particularly those with strong CCS potential or developing countries.

Conclusion

The IEA Model Regulatory Framework for CCS is a comprehensive guide to help governments navigate the complex regulatory landscape surrounding this critical technology. It emphasizes the need for long-term stewardship, public engagement, and international cooperation to ensure the safe, effective, and sustainable deployment of CCS globally.