U.S. Earns High Marks in GCCSI CCS Legal and Regulatory Assessment

Abby L. Harvey
GHG Monitor
10/9/2015

The United States ranks among the best countries in the world in the development of a comprehensive legal and regulatory framework for handling carbon capture and storage (CSS) activities, according to a recently released analysis by the Global Carbon Capture and Storage Institute. Five countries –  the U.S., Canada, United Kingdom, Denmark, and Australia – ranked in the top “band” of the analysis, meaning they possess CSS-specific laws applicable across most parts of the CCS project cycle.

“These findings reflect an extensive and sustained national commitment to the development of law and regulation for the technology, which is perhaps unsurprising when considering the leadership role some of these nations have adopted with regard to the technology,” the report says.

Countries were judged on 29 total three-point indicators resulting in a maximum possible score of 87. These indicators were divided into five criterion categories:

1. The clarity and efficiency of the administrative process under the CCS legal framework to apply for, and obtain, regulatory approval for CCS projects;
2. The comprehensiveness of the legal framework in providing for all aspects of a CCS project, including siting, design, capture, transport, storage, closure, and monitoring for potential releases of stored CO2;
3. The extent to which the CCS legal and regulatory framework provides for the appropriate siting of projects and adequate environmental impact assessment processes;
4. The extent to which the CCS legal and regulatory framework provides for and incorporates meaningful and effective stakeholder and public consultation; and
5. The way in which laws and regulations deal with long-term liability for closure, monitoring, and accidental releases of CO2.

The U.S. scored a total of 64 out of 87, ranking behind Australia at 67, Canada at 65.5, and the United Kingdom at 65. Denmark ranked the lowest of the “top band” with a score of 62. The U.S. tied with Denmark for the lowest score in category two, addressing the comprehensiveness of the legal framework, at 24/36. In category three, the extent to which the legal and regulatory framework provides for appropriate siting and adequate environmental impact assessments, the U.S. tied with Australia for the highest mark at 15/18. In all other categories, the U.S. fell in the middle of the top band.

The remaining 50 countries in the analysis ranked in “Band B” and “Band C.” Band B countries were defined as having CCS-specific laws applicable across only parts of the CCS project cycle, while Band C countries have very few CCS-specific laws applicable across parts of the CCS project cycle.

“The majority of countries demonstrate limited or very few CCS-specific or existing laws applicable across aspects of the CCS project lifecycle. These results may be of particular concern to those jurisdictions with strong policy commitments to the technology and CCS projects in the development pipeline,” the report says. “Countries with lower scores should note, however, that the Legal and Regulatory Indicator does not address a country’s inherent policy interest in the technology, nor does it consider project deployment in an individual jurisdiction.”