GLOBAL CCS INSTITUTE

OVERVIEW OF CCS LAW AND REGULATION

Global CCS Institute Members’ Meeting 2011

Ian Havercroft, Senior Advisor - Law and Regulation

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OVERVIEW

� Status of CCS legal and regulatory development.

� Project-level perspectives. � Moving ‘beyond the framework’.� Moving ‘beyond the framework’.� Development of models – the role of the

Institute.

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STATUS OF CCS LEGAL AND

REGULATORY DEVELOPMENTREGULATORY DEVELOPMENT

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CCS LEGAL & REGULATORY DEVELOPMENT

� Observed trend in the approach adopted for the

regulation of CCS activities to date.

� Regulators have focused upon:

– removal of legal obstacles to the technology;– removal of legal obstacles to the technology;

– the provision of incentives to stimulate

development; and

– designing regulatory frameworks to manage

risks.

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REMOVAL OF OBSTACLES

� International and regional marine agreements

- Swift amendments to both the London Protocol and

OSPAR Convention

- Criteria introduced for the disposal of CO2 in the seabed- Criteria introduced for the disposal of CO2 in the seabed

- Development of associated guidance

- Article 6 and the ‘export of wastes’

- Current status of ratification

� Basel Convention

- Future amendments to specifically include or exclude

CO2?4

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PROVISION OF INCENTIVES

� International climate change agreements

- Status of CCS within the architecture of the international

climate change agreements

- Development of the 2006 IPCC Guidelines for national

GHG inventories – Chapter 5 (Vol.2)GHG inventories – Chapter 5 (Vol.2)

- Decisions in Cancun (COP 16) 2010 and later meetings

� EU Emissions Trading Scheme (EU ETS)

- Revisions to the EU ETS in 2009

- CO2 is ‘not emitted’ when successfully captured and

stored

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DEDICATED REGULATORY FRAMEWORKS

� Significant number of jurisdictions have enacted CCS-

specific legislation.

� Development of regional, national and sub-national legal

and regulatory regimes.

� Broad and over-arching themes may be identified in the

methods employed.

� Address the CCS process in its entirety, or discrete

aspects.

� Early frameworks provide excellent models for the

development of later regimes.

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PROJECT-LEVEL PERSPECTIVES

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PROJECT-LEVEL PERSPECTIVES

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PROJECT LEVEL CONCLUSIONS

� Lack of a clear signals around the regulation of CO2 is of

considerable concern to projects.

� Delayed or incomplete legislation and liability

arrangements are also significant concerns.

� Number of more precise regulatory issues persist. � Number of more precise regulatory issues persist.

However

� Some positive reactions from projects where CCS-

specific legislation has been enacted.

� The utilisation of pre-existing or project-specific

regulation has been well received in some jurisdictions.

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BEYOND THE FRAMEWORK

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BEYOND THE FRAMEWORK

� Timely development of secondary legislation and

regulations.

� Framework nature of early laws requires

secondary legislation to clarify many of the key secondary legislation to clarify many of the key

concepts and mechanisms.

� Ongoing re-evaluation of legislative aims –

‘responsive’ regulation.

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BEYOND THE FRAMEWORK

� Consideration of broader policy commitments.

� Identification and remediation of unresolved legal

and regulatory issues.

� Development of guidance and best practice. � Development of guidance and best practice.

� Need for collaborative effort.

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DEVELOPMENT OF MODELS

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REGULATORY TEST TOOLKIT

� Produced by team from the SCCS (University of Edinburgh) and supported by the Institute.

� Builds upon an earlier ‘dry run’ undertaken by the Scottish Government in 2010.Government in 2010.

� Published in March 2011.

� Takes a CCS project application through the approval process in a regulatory test exercise.

� Suitable for national and regional governments.

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