This global analysis of CCS policies and legislation suggests that thegoal is ambitious. While there have been significant developments in key policies and legislation concerning the CCS project development cycle many challenges exist. The challenges are described below.
- Employing a mechanism which puts a price on carbon will not of itself promote or facilitate CCS projects: it should be used as part of a suite of measures.
- Delays in increasing the real cost of carbon may, however, retard investment in CCS in the near term.
- A lack of cooperation amongst international agencies with similar objectives supporting a multiplicity of projects will delay development and deployment of CCS technologies.
- Taxpayer funded research into CCS will prove increasingly difficult where broader social and environmental dividends are not adequately articulated.
- Characterising CO2 as a ”waste” or a ”pollutant” may be required to help facilitate and regulate capture, especially where specific CCS laws have not been enacted.
- Many existing pipeline laws need to be amended to adequately (and expeditiously) accommodate CO2 transport.
- Transport of CO2 by road, rail and ship is inadequately regulated.
- Overly bureaucratic or otherwise inadequate regulations covering access and exploration rights will delay CCS projects.
- Multiple operator access rules are generally lacking.
- Multiple regulatory regimes are often commonplace.
- Identifying and assigning legal liability for leakage to a suitable party or parties is essential.
- The ”storage” dimension of CCS will be the hardest to secure in the short term and it is critical to significant near term CCS investment.
- Insurance products need to be developed to accommodate long-term environmental liability where governments are not prepared to assume liability.
- CCS is not yet an accepted carbon credit generating mechanism under either of the Kyoto Protocol’s Flexible Mechanisms. There are good reasons why it should be, especially so as to promote investment in developing countries.
- The London Protocol and the Basel Convention may both need to be amended so as to accommodate key elements of CCS projects.