Demonstration projects of Carbon Capture Storage (CCS) is one of most hotly contested issues about action on climate change. CCS is linked by many to the price of carbon on trading markets and the survival of coal and other fossi; fuels as major energy resources.

The IPCC defines CCS as the separation of carbon dioxide from industrial and energy-related sources, transportation to storage location and long-term isolation from the environment; they consider CCS as an option in mitigating climate change .

A legal framework has been agreed by the EU to regulate this emerging technology and its widespread deployment. The agreement process has already secured funding for 12 CCS pilot projects from 300 million ETS carbon trading credits. Currently, these projects must each be under 100 kilo tonnes of storage, fully contained with the EU boundaries and constructed by 2015.

Currently, the pilot funding rules are not fixed. According to a source close to the matter, the Energy Commission is currently working with consultants to assess projects and determine funding criteria and the Environment Commission will be responsible to administer the allowances, via member states, when the times comes.

Once again, it is a directive so the member states will issue permits for the storage sites, though applications are to be submitted to the commission and they may make non-binding opinions. There is no veto in the directive but in practice, there is a whole body of EC environmental and planning law at the commission’s disposal if necessary.

Outside of the EU, there are moves being made in the R+D of CCS. Recently announced was the Global Carbon Capture and Storage Institute , to be headquartered in Australia, that has the goal of delivering 20 CCS projects by 2020.

The UN is under mounting pressure to include CCS technology in the CDM mechanism, speculation is that CCS will have to be included for developing countries to agree to carbon emissions. According to Yvo de Boer , Executive Secretary of the UNFCCC, the question is whether CCS will be allowed within the CDM mechanism and how that would work; a decision is expected by the end of the year in Copenhagen 2009.

> Back to Report home