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THE LONG-TERM STEWARDSHIP OF CARBON DIOXIDE STORAGE SITES : EVERS :: :: : (2008) 20 ELM 127127
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The long-term stewardship of carbon dioxide

storage sites – who pays, for what and how?

Angus Evers
Head of Environment, SJ Berwin LLP

Introduction included an aspiration for 12 operational projects by
2020. 8
9
In recent years an international scientific and political CCS is not without its critics. The argument that
consensus has emerged about the potential of carbon CCS simply prolongs the fossil-fuel economy and merely
capture and storage (CCS) as a technology for reducing delays the transition to a hydrogen economy is a
atmospheric carbon dioxide (CO ) emissions arising from persuasive one, but ignores the reality of the fact that
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the burning of fossil fuels. The Intergovernmental Panel the relentless economic growth of China and India is likely
on Climate Change’s (IPCC) Third Assessment Report to continue to be fuelled by cheap coal, of which both
indicates that no single technology option will provide all nations have abundant reserves. The issue, then, is how
of the emission reductions needed to achieve stabilisation to ensure that CCS can be deployed as rapidly as possible
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of atmospheric CO concentrations, but that a portfolio while satisfying the concerns of both the public and
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of mitigation measures will be needed. Since the regulators that the technology is sound and will deliver
publication of the Third Assessment Report in 2001 a the predicted reductions in CO emissions.
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number of reports and papers have been published on One of the key areas of concern for the public, policy-
the potential of CCS as one such mitigation measure. A makers and regulators alike is the management of long-
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number of CCS projects are now operational around the term liabilities which may arise from CCS. Given that the
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world, and governments are putting in place policies and aim of CCS is to reduce the amount of atmospheric CO
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legislation to enable the deployment of CCS on a emissions arising from the burning of fossil fuels, it follows
commercial scale. In November 2007 the United that once stored, the CO should remain stored. If the
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Kingdom (UK) Government launched a competition for stored CO were to be allowed to escape over time it would
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the development of a commercial-scale CCS project defeat the whole purpose of CCS as a means of abating
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involving power generation, and in January 2008 the atmospheric emissions of CO , as well as potentially
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European Commission published its proposals for the creating both local and global environmental risks. To
development of CCS in the European Union (EU), which achieve a high level of protection for the environment and
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human health and safety, and achieve the goal of indefinite
storage, robust legal mechanisms are required to ensure
that injection and storage installations are properly
decommissioned and that the risks arising from closed
1 IPCC Third Assessment Report available at http://www.ipcc.ch/
ipccreports/tar/index.htm. storage sites are managed in the long-term (that is,
2 ibid Summary for Policymakers p 12 para 22. indefinitely if necessary). However, the design of the legal
3 For examples, see the ‘IPCC Special Report on Carbon Dioxide Capture
and Storage’ 2005 (available at http://www.ipcc.ch/ipccreports/ frameworks for the allocation of long-term liabilities for
srccs.htm); ‘Carbon Dioxide Storage: Geological Security and CO storage sites post-closure is one of the most complex
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Environmental Issues Case Study on the Sleipner Gas Field in Norway’ legal issues for policy-makers and legislators to tackle. This
Solomon, Semere (2006), The Bellona Foundation (available at http:/
/bellona.no/filearchive/fil_Paper_Solomon_-_CO2_Storage.pdf); ‘CO2 article, therefore, looks at how existing legal frameworks
Mineral Sequestration Studies in US’ Goldberg and others (1998), in the EU and the UK could apply to the long-term
National Energy Technology Laboratory (available at http:// stewardship of CO storage sites and where the gaps lie,
www.netl.doe.gov/publications/proceedings/01/carbon_seq/ 2
6c1.pdf). and analyses the European Commission’s and UK
4 Well-publicised examples include the Sleipner project in the Norwegian Government’s proposals for filling these gaps.
sector of the North Sea, the In-Salah project in Algeria and the Weyburn
project in Canada. For other examples see http://www.co2captureand
storage.info/search.php. What is required in a legal framework for the
5 For example the UK Government’s Energy Bill, introduced into long-term stewardship of CO storage sites?
Parliament on 10 January 2008 (http://services.parliament.uk/bills/ 2
2007-08/energy.html), and the Australian Government’s Offshore
Petroleum Amendment (Greenhouse Gas Storage) Bill ( http:// Any legal regime dealing with the issue of long-term liability
www.r e t.go v.au/General/R e sour ce s-CCS/Page s/ for CO storage sites should satisfy two criteria. First, as
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GHGStorageLegislation.aspx).
6 http://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=331669
&NewsAreaID=2&NavigatedFromDepartment=True. It was announced
on 30 June 2008 that four bidders have pre-qualified – BP Alternative 8 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:
Energy International Limited, E.ON UK plc, Peel Power Limited and 52008DC0030:EN:NOT.
Scottish Power Generation Limited. 9 http://www.greenpeace.org.uk/blog/climate/the-problem-with-
7 http://ec.europa.eu/environment/climat/ccs/eccp1_en.htm. carbon-capture-and-storage-ccs-20080103.
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