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Liability has long been raised as a significant barrier to the wide scale deployment of carbon capture and storage (CCS). Despite regulatory developments, the topic of liability continues to be considered by some CCS project developers, policy-makers and regulators as a critical issue and potential ‘show-stopper’ for the technology’s deployment.
This report, through policy and regulatory analysis as well as interviews with policy makers, regulators, lawyers, project proponents and representative from the insurance sector, seeks to challenge these views and make the case for a more commercially-minded view of liability.
The report’s findings reveal that many of the liabilities borne under CCS-specific models are both familiar and eminently manageable. Furthermore, the report demonstrates proposed solutions and examples available in addressing liability for those seeking to invest in or operate CCS projects.
The report also examines the meaning of liability throughout the CCS lifecycle and the unique challenges presented by greenhouse emissions/climate liabilities. The critical role of government and the private sector in allocating and managing risks across the CCS project lifecycle, as well as the essential requirement for further engagement of the insurance sector to assist operators manage liabilities are also topics addressed through this timely report.
The report will be of particular interest to government policy makers, regulatory bodies, CCS project proponents, investors and those in the insurance sector wishing to further understand the topic of liability, the reasons why it is perceived as a barrier to CCS deployment and gain insights into how these barriers have been - and may continue to be - managed and overcome.
Legal liability issues remain critically important for the commercial development of carbon capture and storage (CCS). This co-authored report by Global CCS Institute and University College London largely focusses on the storage aspect of the CCS process. Storage is where the most distinctive liability challenges lie, largely due to the long time-scales involved.
The authors address three types of legal liability:
- Civil liability where third parties who have suffered harm seek compensation or a court order.
- Administrative liability where authorities are given powers to serve some form of enforcement or clean-up order.
- Emissions trading liability where an emissions trading regime provides a benefit for CO2 storage and an accounting mechanism is in place should there be subsequent leakage.
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Content and material featured within this section of our website includes reports and research published by third parties. The content and material may include opinions and recommendations of third parties that do not reflect those held by the Global CCS Institute.