Steve Tantala - World Energy Council

Regulatory and Legal Issues for CCS
WEC Cleaner Fossil Fuels Systems (CFFS) Workshop
Carbon Capture and Storage - A Way Forward for Cleaner Fossil Fuels
Erice, Sicily 24 August 2005
Mr Steve Tantala
Manager
Resources Environment and Carbon Capture and Storage Section
Department of Industry, Tourism and Resources – Australia

Overview
• Carbon Sequestration Leadership Forum (CSLF)
• International Energy Agency (IEA)
• Case Study - Australian domestic regulatory work

CSLF: An international climate change initiative
• Focus: Development of carbon capture and storage technologies
• Goal: Long-term stabilization of atmospheric greenhouse gases.
• Method: Coordinated research and development with international
partners and private industry.
• Charter: Signed June 24, 2003, Washington DC by 13 countries
and the European Commission.
• Current Membership: The CSLF currently has 19 members with
applications pending for Saudi Arabia and Korea

CSLF Legal Regulatory and Financial
Issues Taskforce
• June 2003 - Legal, Regulatory and Financial Taskforce established
• September 2004 - CSLF Ministerial Meeting in Melbourne
• Regulatory Issues report agreed
• Legal work would continue to be progressed through the IEA and
monitored by CSLF
• Legal, Regulatory and Financial Issues Taskforce was folded

CSLF Regulatory Work
• Legislative, regulatory and administrative framework which is
soundly based and publicly stated
• Provide certainty and predictability for all stakeholders
• Fosters CCS in a cost effective and environmentally
responsible manner
• Consistent both within national borders and internationally, but
respects the sovereignty of international governments

CSLF/IEA Legal Work
Processes to Date
• In July 2004, a joint IEA/CSLF Legal Aspects of CCS Workshop
was held in Paris to examine regulatory and legal issues in
domestic and international law surrounding CCS
– Workshop Objectives
• Better understanding of national and international legal
frameworks applicable to CCS
• Identify impediments to CCS development and
incentives required
• Create a list of priorities and next steps

International Energy Agency
Working Party on Fossil Fuels
Workshop Outcomes
Outcomes of Workshop
• IEA Publication Legal Aspects of Storing CO 2 released in March 2005
• Definitional and Policy Issues examined:
– Balancing various objectives of international community
– Is CO 2 a waste ?
– Storage site selection and ownership
– Monitoring
– Long term liability
– Precautionary principle
– CCS as climate mitigation technology

International Energy Agency
Working Party on Fossil Fuels
Key Legal Issues
• Long term ownership of CO 2
and liability
- monitoring and verifying storage
- ensuring containment (e.g. well maintenance)
• Responsibility in the event of stored CO 2 leaking
• Is CO 2
stored or disposed of?
• Overview of legal issues
- Review of International Conventions
- Further work is being done by the IEA
- Taskforce consider legal issues jointly with the IEA
- Proposals for joint activities be presented to the CSLF

Priorities for Future Work:
Future Work
• Increase number of CO 2 demonstration projects
• Appropriate levels of national legal and regulatory framework
• Need to clarify legal status of CO 2 storage in international
environment protection instruments
• Government should create a level playing field for CCS with other
climate mitigation technologies
• Increase public awareness
Next Steps:
International Energy Agency
Working Party on Fossil Fuels
• An IEA Legal Workshop on CCS issues is proposed for 2006

AUSTRALIA – DOMESTIC WORK
GEODISC - Australian Geological Assessment of
CCS Sites
Potential ESSCI sites
Unproduced high CO 2
gas field
Emission Node
*48 basins were considered
viable sites
for study (out of > 300)
*102 sites analysed
* 65 proved viable ESSCIs
* 22 sites not viable; 15 regional
basin overviews
GEODISC Basins
Source: Geoscience Australia

Proposed Project Locations in Australia

Development of CCS
Regulatory Guiding Principles
Aims
• Deliver a consistent transparent and flexible basis for regulation of CCS
projects
• Potential to deliver investment certainty for CCS projects
• Safeguard public interests in natural resource management, environmental
impacts, health and safety issues addressed
• Increase public confidence and acceptance of CCS technologies
• Increased research development and transfer of technology
• Consistency in the application and regulation of CCS technologies and
processes

Key Regulatory Issues
Six key issues:
• Assessment and Approvals Process
• Access and property rights
• Transportation Issues
• Monitoring and verification
• Liability and post-closure responsibilities
• Financial issues

Catchment Area Management
Groundwater
Injected
CO 2
Land Use –
above & below
Mineral/Petroleum
Deposits
Environment
Conservation

Federal System
Development Process
• Australian Government consulted with its seven States and
Territories to develop and agree on a set of nationally consistent
principles (through Ministerial Council)
Consultation
• Principles developed and revised through extensive consultative
processes with Government, industry, research organisations and
environmental non-government organisations

Consultation / Stakeholder Engagement
• Some past press articles in Australia have suggested
stakeholder views toward CCS are largely negative
Burying the problem
Victoria bids to bury emissions
Row erupts over carbon test funding

Consultation / Stakeholder Engagement
• But the tide is turning…..
Green group wants clean coal method put to the test
Pact halves emissions by the next century
Emissions pact `fairer than Kyoto'
Climate pact a good beginning
Alliance targets emissions

Outcomes
• Australian Regulatory Guiding Principles for CCS will be put to Ministers
for endorsement in late 2005
• Subject to Ministerial approval, it is intended that all States/Territories
would implement the Principles in a nationally consistent manner
• Endorsement of the framework by Ministers will foster community
acceptance of the technology while promoting a sound investment
climate.

For More Information
Visit the CSLF website at:
www.cslforum.org
Visit the IEA website at:
www.iea.org
Visit the Australian DITR website at:
www.industry.gov.au/ccs