CCS policy andengagement in

emerging economies

Sarah Forbes

CCS Project DirectorClimate and Energy Program

World Resources Institute

June 12, 2009

www.wri.org

Overcoming barriers

• With demonstration:

– Technology learning

– Lower costs

• To address social barriers:

– Need clear rules for environmental protection

– Need to engage local communities

Flickr Remuz

Guidelines:

developedbased on astakeholderprocess andpublished inOctober, 2008

Guidelines for Community Engagement in theCCS Projects: A WRI Project

Objective: To define a practical set of guidelines for how to best engage communitiesregarding CCS technology. The Guidelines will serve as a benchmark for regulators,local decision makers, and project developers to consider as they proceed withimplementing CCS projects.

Timeline:One-year stakeholder process launched in April 2009. Tentative timeline:• April 23-24 2009, kick off meeting to develop consensus on scope of effort and

begin drafting Guidelines• May-June, 2009 stakeholder working group calls• September 2009, working meeting to discuss and review draft Guidelines• January 2010, release of draft to broader stakeholder group for comments• April 2010, publication of community engagement guidelines

Want to join stakeholder process? contact:Sarah Forbes (email: sforbes@wri.org Phone +1 202 729-7714 ) orPreeti Verma (email: pverma@wri.org Phone: +1 202 729-7754)More Information about WRI CCS Project: http://www.wri.org/project/carbon-capture-

sequestration

Developing CCSGuidelines for China

Actions by China and India maydictate global emissions trends

Installed and planned coal-fired power

India

• 2002-2007: 10 GW

• 2007-2012: 45 GW

China

• 2002-2005: 135 GW

• 2006-2010: 220 GW planned

• 2007: 170 GW already installed

Data Source: Chikkatur 2008

GreenGen

Coal and electricity generation per capita

IEA 2007; 2005 Data Chikkatur, 2008

India: government does notsupport CCS, what’s next?

• Enhance technical R&D,legal and regulatory capacity

• Detailed onshore andoffshore geologic storagecapacity estimates

• Use geologic storagecapacity maps to influencepower plants siting decisions

Flickr: mdiocuh qaleals

Key questions about China

1. Is China really considering CCS?

2. Is there geologic storage capacity inChina?

3. What is the environmental regulatory andpolicy framework for CCS in China?

4. How does public awareness fit in theChinese policy context?

China’s industry leaders aremoving CCS technology now

• Huaneng:– Approval granted in June for 1st IGCC, 250kw in

Tianjin

– Planned project to capture and reuse 10,000 tons/yrnear Shanghai

– Gaobeidan power station: 3,000 tons/yr near Beijing

• Shenhua: plans a to operate a CCSdemonstration at a CTL facility in Inner Mongoliawithin 2 years

• PetroChina: pilot projects underway testing CO2-EOR

Newlands & Langford., 2005

Ordos, Bohai, Subei, andSongliao basins offer promisingsites for CCS with potentialsources of CO2 and geologicstructures to support securestorage in saline formations andvia EOR opportunities.

(Assessment by S. Julio Friedmann,LLNL presented at ACCI in May 2009)

CCS-relevant policy in China

• National R&D for CCS prioritized as part of the National973 and 863 Programs

• 11th 5 year plan had provisions to shut down coal-firedpower plants that didn’t meet efficiency targets, including:– Smaller than 50 MW

– Operating 20 years with less than 100 MW capacity

– Coal consumption 15% above national average

– Not meeting environmental protection standards

• Environmental regulations in place :– Transportation: no experience with CO2, but relevant rules from

natural gas and chemical pipelines

– Storage: rules in place for protecting groundwater protection,quality, and determining water use rights

Community Engagement in ChinaThe case of Xiamen PX Project

(Case Study By Yue Liu, WRI)

Results and impact:

• May 30th, 2007, Government officially announced a “temporary halt” of the PX project

• December 19th,2007, the government decided to abandon the construction of the PX factory

• Its positive results have encouraged people in other cities to express their voices publicly

Community engagement:

• Protest Demonstration: June 1st, 2007, about ten thousand people protest on the street

• Text Message: A anti-PX message was circulated among millions of residents overnight.

• Internet: Blogs, email, MSN, and QQ (the most popular instant message program in China)

Background:

February 2004, the State Council approved the $1billion PX project in Xiamen, Fujian

PX is p-Xylene, a dangerous, highly carcinogenic chemical

July 2005, this PX project passed the environmental impact assessment

Questions?

Sarah Forbes+1-202-729-7714Skype: sarah.m.forbessforbes@wri.orgwww.wri.org

Resources

Community role in the case of Nansha refinery

Background:

• The Kuwait Petroleum Corporation and Sinopec proposed in 2005 tobuild a refinery in an the island of Nansha in Guangzhou.

• A projected investment of $5 billion – was China’s largest joint venture

Community engagement:

• Hongkong media first reported the case

• Citizens in Guangzhou and Hongkong showed strong opposition

• Numerous blogs were built to discuss the impacts and distribute the info.

Results:

•The environmental impact report was published by MEP

• 14 members of the Guangdong People’s Congress submitted a motion toBeijing to ask the central government to halt the project

Impact:

•The refinery facility maybe relocated to Zhanjiang, a port city far away fromHongkong.

Case Study By Xiaomei Tan, WRI

China Legal System

Implementing the provisions of laws inlight of actual local conditions;Regulating local matters.

Local People'sCongresses

Local RegulationsLevel 4

Implementing the provisions of laws,administrative and local regulations;

Regulating specific administrativematters.

Local People'sGovernments

Local Rules

Level 5 Enforcing laws or administrativeregulations, decisions and orders of theState Council.

State AdministrativeAgencies

Ministries’Administrative Rules

Implementing the provisions of laws;Performing administrative functions.

the State CouncilAdministrativeRegulations

Level 3

Substantive Laws: civil law etc

Procedural Laws: civil procedure law etc.the National

People's CongressNational LawsLevel 2

the Supreme law of China.the National

People's Congressthe ConstitutionLevel 1

FeaturesLegislativeDepartments

CategoriesHierarchy

(Source: Legislation Law of the People's Republic of China)

State Council

Ministry ofEnvironmental Protection

Provincial EnvironmentalProtection Bureau

Municipal EnvironmentalProtection Bureau

Municipal EnvironmentalProtection Commission

District GovernmentDistrict/County Environmental

Protection Bureau

Provincial Government

Technicaladvisory

Technicaladvisory

Technicaladvisory

Funding

Provincial EnvironmentalProtection Commission

Municipal Government

District/County EnvironmentalProtection Commission

Funding

Funding

Funding

How does community play a role in China?C

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mu

nity

Figure by Xiaomei Tan, WRI