Carbon Capture and Storage: Legal and Policy Considerations for Sustainable Energy Solutions

Abstract
By lowering greenhouse gas emissions from energy generation and industrial operations, carbon capture and storage, or CCS, has become a vital technological advancement in the fight against climate change. The development and application of CCS technologies, however, confront formidable legal and policy obstacles despite their potential to help achieve global carbon reduction goals. This study examines the legislative and policy tools required to support the implementation of CCS as a sustainable energy choice.

In order to solve these issues, it evaluates national, regional, and international legal methods as well as the regulatory gaps that prevent CCS projects from being widely implemented. The analysis focuses on identifying the factors that hinder and facilitate the deployment of CCS, including environmental regulations, intellectual property rights, liability concerns, and public participation.

The research also examines the ways in which the regulatory environment for CCS is impacted by current international climate agreements, like the Paris Agreement. This paper identifies optimal methods for establishing a favorable legal environment by evaluating case studies from nations that have advanced CCS efforts. Lastly, suggestions are made for coordinating legislative and regulatory frameworks so that CCS can significantly contribute to the realization of sustainable energy transitions.
 
Introduction
Growing greenhouse gas (GHG) emissions are making climate change one of the world's most urgent challenges of the twenty-first century. Carbon dioxide (CO₂) emitted by the combustion of fossil fuels for energy and industrial activities is one of the main contributors to greenhouse gases (GHGs). Carbon capture and storage (CCS) is widely acknowledged as a crucial technique for reducing greenhouse gas emissions from high-emitting industries, including power generation, steel, and cement production, as nations shift towards a more sustainable future.

To keep CO2 from entering the atmosphere, carbon capture and storage (CCS) entails removing CO2 from the source of emission, moving it, and storing it in geological formations like depleted oil fields. Despite significant technological developments, policy and legal issues still prevent the device from being widely used. In order to overcome these obstacles, this article offers a thorough examination of the laws and regulations necessary for the effective implementation of CCS.

The Science and Technology of Carbon Capture and Storage

Carbon Capture

  • Post-combustion capture: The most developed and frequently used method. It entails removing CO₂ from the flue gases left behind from burning fossil fuels. This approach can be retrofitted to already-existing power facilities and often uses amines for CO₂ absorption in gas streams.
  • Pre-combustion capture: Involves gasifying fossil fuels to turn them into a hydrogen and CO₂ mixture. Hydrogen is used for power generation, and CO₂ is extracted. This method is often more efficient but less suitable for retrofitting.
  • Oxyfuel combustion: Burns fuel in pure oxygen rather than air, producing a flue gas mainly composed of CO₂ and water vapor, which are easily separated. Though effective, the process is expensive due to the need to produce pure oxygen.

Transportation of CO₂

  • Pipelines are the most common method for CO₂ transport, especially in countries like the U.S. where networks already exist for enhanced oil recovery (EOR) operations.
  • Legal and regulatory issues arise with new pipeline projects, especially cross-border ones, concerning environmental impact, land rights, and safety.
  • CO₂ transport by ships is possible but less developed. It requires strict safety, handling, and storage protocols, and maritime regulations need to evolve for large-scale transport.

Storage

  • Depleted oil and gas reservoirs: Geologically well-understood and proven to hold gases, making them ideal for CO₂ storage.
  • Saline aquifers: Porous rock formations filled with saltwater; they offer large capacity but are less understood than oil and gas reservoirs.
  • Unmineable coal seams: Can trap CO₂ but are generally considered less favorable than other options.
  • Long-term storage requires strict regulatory monitoring to prevent leakage. A major hurdle for CCS expansion is the absence of long-term liability frameworks for CO₂ leakage.

Legal Frameworks for CCS

  • International Legal Context
    • The Paris Agreement under the UNFCCC establishes carbon emission reduction targets.
    • CCS is recognized as a contributing technology, but the Paris Agreement does not set specific legislative standards.
    • Individual countries are responsible for enacting their own CCS laws.
  • Regional Legal Perspectives
    • EU Directive 2009/31/EC provides a legal basis for CO2 geological storage.
    • It outlines site selection, monitoring, and post-closure responsibilities.
    • The U.S. regulates CCS under laws like the Safe Drinking Water Act and the Clean Air Act.
  • National CCS Laws
    • Australia and Norway have robust CCS laws supporting deployment.
    • Norway's Sleipner project is a pioneer, regulated under the Petroleum Act.
    • Australia's OPGGSA covers offshore CCS and outlines injection/storage regulations.

Regulatory Challenges and Liability Issues

  • Environmental Law and Permitting
    • CCS sites face stringent environmental regulations and require EIAs.
    • Risks assessed include groundwater pollution, CO2 leakage, and ecosystem impacts.
    • EU Directive 2009/31/EC provides detailed permitting and reporting requirements.
    • Cross-border CCS faces legal inconsistencies complicating approvals.
  • Liability for CO₂ Leakage
    • Key concern is long-term accountability for potential leaks.
    • Some countries have financial assurance systems and liability frameworks.
    • EU CCS Directive requires operators to show low risk before state assumes liability.
    • Monitoring and long-term planning are essential for liability transfer.
  • International Law and Cross-Border CCS Projects
    • Projects face challenges in jurisdiction, liability, and environmental safeguards.
    • London Protocol originally prohibited CO2 export for sub-seabed storage.
    • 2009 amendment allows cross-border CO2 transfer, but adoption is limited.

Policy Considerations for CCS Deployment

  • Government Incentives and Subsidies
    • Governments can use tax credits, subsidies, and carbon pricing to support CCS.
    • The US 45Q tax credit rewards businesses that capture and store CO2.
  • Carbon Pricing Mechanisms
    • Carbon taxes and ETS systems promote economic feasibility of CCS.
    • Pricing level and policy stability are key for effectiveness.
  • Public-Private Partnerships
    • PPPs enable shared risk and innovation in large-scale CCS projects.
    • The Petra Nova project in Texas exemplifies successful collaboration.


Case Studies of CCS Implementation:

  • Case Study 1: The U.S. Clean Air Act and CCS Projects
    • The Clean Air Act in the US offers a legislative foundation for controlling CO2 emissions from power plants.
    • Section 111 of the Act requires the EPA to establish performance guidelines for new and existing power facilities.
    • This clause enabled CCS incorporation into US environmental policy, especially through the Clean Power Plan (CPP).
    • The Biden administration supports CCS as part of broader climate initiatives.
    • The U.S. DOE's Carbon Capture Program has aided in CCS research and development.
       
  • Case Study 2: Norway's Sleipner Project
    • Sleipner has stored over 20 million tonnes of CO2 since 1996.
    • CO2 is extracted during natural gas production and stored in a saline aquifer beneath the North Sea.
    • The project is governed by the Petroleum Act of Norway, which includes CO2 storage guidelines.
    • Norway enforces strict monitoring and reporting protocols for CCS.
    • The Norwegian Petroleum Directorate oversees the project and submits annual reports.
    • Sleipner serves as a global model for CCS legislation and safety.
       
  • Case Study 3: Australia's CCS Initiatives
    • Australia's Offshore Petroleum and Greenhouse Gas Storage Act (OPGGSA) provides a regulatory framework for CCS.
    • The OPGGSA outlines licensing, long-term liability, and monitoring requirements.
    • The Gorgon Project, the world's largest CCS project, captures and stores CO2 beneath Barrow Island.
    • The project is expected to store up to 4 million tonnes of CO2 annually.
    • Despite its potential, CCS faces public resistance due to environmental concerns.
    • Public engagement and clear regulation are critical to address these concerns.
       

Public Engagement and Social Acceptance

  • Public Perception of CCS
    • CCS success often hinges on public acceptance.
    • Low awareness and misconceptions (e.g., fears of leakage) can cause resistance.
    • Governments and developers must engage communities early with accurate information.
    • Public consultations, community meetings, and educational programs are essential.
  • Addressing Public Concerns
    • Security of CO2 storage is a major public concern.
    • Legal frameworks should include strict monitoring and verification measures.
    • Clear accountability and compensation provisions can build public trust.
    • Positioning CCS as a key climate solution can enhance its perception and acceptance.
       

Recommendations for Harmonizing Legal and Policy Frameworks

  • Countries should collaborate to harmonize legal and policy approaches to CCS.
  • International cooperation is necessary for sharing best practices and regulatory strategies.
  • National policies should align with global climate objectives, possibly via CCS-specific treaties or standards.
  • Governments should consider establishing long-term liability funds for CO2 storage risks.
  • Legal frameworks must institutionalize public engagement in CCS project planning.

Conclusion
A major chance to lower CO2 emissions and support global climate goals is provided by carbon capture and storage. However, overcoming significant legal, regulatory, and societal obstacles is necessary for its successful implementation. A concerted effort is required to create precise and uniform legislation that support CCS while guaranteeing long-term safety and environmental preservation, as case studies and legal framework analysis have shown.

Governments must keep sponsoring CCS with financial incentives and regulatory support, including long-term liability and environmental risk management measures. Prioritizing public participation is also necessary to foster confidence and ensure that CCS initiatives are accepted by society. All things considered, the key to guaranteeing that CCS becomes a fundamental part of sustainable energy solutions will be the harmonization of legal and policy frameworks, both domestically and internationally.

Funding Information
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

Ethics statement
This study did not involve any human or animal subjects and, therefore, did not require ethical approval.

Statement of Conflict of Interests
The author declares no conflicts of interest related to this study.

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