Carbon capture and storage directive final outcome

Carbon capture and storage directive final outcome

Legislation setting out the legal framework for CCS, detailing administrative processes for dealing with requests for exploration and storage and the procedures to follow after the closure/sealing of storage sites.

 Financing of CCS *(part of ETS legislation, not CCS)

While the issue of financing of CCS was not the subject of this legislation, the EP rapporteur Chris Davies explicitly made the whole outcome and content of the directive dependent on receiving guaranteed public funding for CCS through the emissions trading scheme legislation (ETS).

In the EP environment committee vote on ETS, MEPs supported Davies' proposal that CCS projects should be financed from the new entrants reserve of the emissions trading scheme. Under his proposal, companies implementing CCS projects in Europe would get 500 million emissions allowances from the EU's emissions trading scheme (equivalent to €10 billion).

So, effectively, public funds would be used to finance projects carried out by firms like BP and Total. This flawed scheme would also ensure that those emissions would be double credited: they would not be counted under the ETS and the firms responsible would also get extra emissions allowances.

Finally, after the insistence of Davies, with the backing of the UK government, the summit agreed on providing 300 million emissions allowances. However, it is also stipulated that these allowances must be made available not just for CCS but for projects in new renewable technologies aimed at emissions reductions. 

Emissions performance standard

The EP environment committee supported a Green proposal for emissions performance standards for new fossil fuel-fired power plants i.e. that only fossil plants meeting a specific standard of emissions generated per energy output would be permitted to be built. The Greens had proposed a standard of 350g CO2 per MWh to be introduced immediately. In the end, the EP adopted a standard of 500g/MWh to be introduced in 2015. This would have ensured that only the most efficient gas- and coal-fired plants (combined heat and power plants or those with CCS) could be built from 2015. However, the final 'compromise' only includes a vague statement on new power plants being built 'capture ready'. This means utilities firms can continue to build the most polluting coal power plants in the hope that CCS might be one day a reality, despite the fact that we need to be urgently reducing our emissions.

Enhanced recovery of hydrocarbons

The EP environment committee voted to exclude the enhanced recovery of hydrocarbons (like oil and gas). By nature, this process produces extra fossil fuels (negating any potential benefit) and does not aim to permanently conserve CO2. However, the final 'compromise' would not exclude this enhanced recovery.

Purity of stream

The EP had wanted to ensure that only gas containing 95% CO2 could be considered for storage. The final compromise merely states that the gas should be overwhelmingly comprised of CO2.

Transport of CO2

On the transport of CO2 to storage sites, the EP called for a proper risk assessment on the risks of transporting CO2, as compared with gas. However, this was not included in the final compromise.