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A MUltiple Space and Time scale approach for the quAntification of deep saliNe formations for CO2 storaGe

REGULATION

The “Climate Action and Renewable Energy Package”, which was approved by the European Council on 6th April 2009 and published in the European Official Journal on the 5th June 2009, is a set of six legislative measures with the objective of favouring the transition to a more sustainable energy sector:

 Regulation (EC) No 443/2009 on emission performance standards for new passenger cars;
 Directive 2009/28/EC on promotion of renewable energy;
 Directive 2009/29/EC on the European greenhouse gas emission allowance trading scheme;
 Directive 2009/30/EC on the specification of petrol, diesel, gas-oil and fuel used by inland waterway vessels and   introducing a mechanism to monitor and reduce greenhouse gas emissions;
 Directive 2009/31/EC on the geological storage of carbon dioxide;
 Decision No 406/2009/EC on the effort of Member States to reduce their greenhouse gas emissions.

CCS is regulated by two of these legislative measures. First of all, the EU Directive 2009/31/EC establishes guidelines for exploration and storage permits, liabilities and closure procedures for CCS sites. According to the Directive, Member States retain the right to decide whether to allow CCS in their territory and, in the case they do, they are allowed to choose the areas where to realize CCS. The Member States that decide to allow CCS in their territory shall perform a characterization and an assessment of the potential storage complex and surrounding area. In addition, the Directive establishes that CCS is allowed only in areas without a significant risk of leakage and other risks for the environment or human health. Member States retain the right to grant exploration permits and to control that no exploration takes place without an exploration permit. The permit procedures shall be open to all entities with the necessary capacities, and the permits shall be assigned on the basis of clear, objective and not discriminatory criteria. The same holds for storage permits.

Secondly, the EU Directive 2009/29/EC on the Emission Trading Scheme gives a substantial contribution to the development of CCS. Emission trading is a mechanism established by the Kyoto Protocol for the countries with reduction commitments. The EU Emission Trading Scheme is the most developed emission market in the world. The countries with emission commitments under the Kyoto Protocol over the 2008-2012 period have been given “assigned amounts” of permitted emissions, which are divided into assigned amount units (AAUs). Countries with higher emissions than their target, can buy AAUs from countries that emitted less than their assigned amount of emissions. In addition, each country assigns emissions allowances to the most GHG intensive industrial installation in their territory. The installations with higher emissions than their emission allowances can also buy in the market AAUs from installations that emit less than their emission allowances. Presently the allowances are given for free to the enterprises, but in the next future an increasing share of them will have to be bought by the enterprise from the state. The EU Directive 2009/29/EC establishes that up to 300 millions allowances will be made available until the end of 2015 to finance the construction and operation of up to 12 commercial CCS demonstration projects, as well as other demonstration projects of innovative renewable energy technologies. The financing will be dependent upon the verified avoidance of CO2 emission, and no projects shall receive support from this mechanism that exceeds 15% of the total number of allowances available for this purpose. An agreement has not yet been reached on the modalities and mechanisms of the disbursement, even though the Directive establishes that projects shall be selected on the basis of objective and transparent criteria, including the knowledge-sharing potential. CCS installations should be co-financed by the operator, and could also be co-financed by the concerned Member States.

As regards other countries, the most advanced regulations in favour of CCS can be found in Australia and in California. The first one adopted the regulatory Guiding Principles for CCS (2005) and the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (which came into force in 2008). The latter provides a mechanism for access and property rights in offshore water for CCS. In the USA, California established regulations that specified a limit on CO2 emissions from power plants of 55 gCO2 per kWh, thereby favouring the CCS option (traditional coal power plants emit more than that without CCS). In addition, both the London Convention and OSPAR, two international agreements to protect respectively the global and the North East Atlantic marine environment, were amended to allow CCS in the sea

©Mustang - 2009