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27 min ago 2 min read
Carbon capture and storage-specific frameworks are largely absent in Asia Pacific and significant gaps remain in existing regulatory frameworks in relation to key aspects of the CCS project lifecycle, according to a report from the Global CCS Institute prepared for the Oil and Gas Climate Initiative.
These gaps hold implications for the development and implementation of CCS activities both domestically and in the context of regional CO2 transport and storage activities.
Several countries are contemplating cross-border storage of CO2 due to high domestic emissions, limited domestic storage potential, and geographic proximity to suitable storage sites in the territorial waters of neighbouring countries.
The report finds a “defining trend” in the region is the strong link between domestic CCS support and international climate cooperation, focusing on cross-border CCS value chains.
“This approach gives rise to a variety of key issues that require clarification within national regulatory frameworks,” the report states.
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Key CCS-specific provisions in need of attention include clarification of pore space ownership; separate permitting pathways authorising CCS activities; CO2 classification; site characterisation requirements; monitoring and verification; risk mitigation and management; authorisation of site closures; post-closure site care and monitoring; and long-term liability.
“The lack of clarity on these issues is a considerable uncertainty that may serve to deter project operators from advancing investments in CCS,” the report concludes. “Furthermore, the lack of regulation across these aspects holds implications for assuring the safety, permanence and integrity of CO2 storage operations.”
Encouragingly Indonesia, Malaysia, Japan, Thailand, New Zealand and South Korea have established or proposed CCS legal frameworks in the last two years, and Australia has continued to refine operator obligations through regulations and guidance.
Carbon markets are also expanding across APAC and increasingly seen as a potential mechanism to support CCS deployment.
However only a limited number of schemes currently allow or propose CCS-related credit generation, and major barriers remain, including inconsistent rules, weak market interoperability, limited methodologies for CCS credits, and carbon prices that are still too low to support commercial-scale projects, the report adds.
