Review of Relevant Legal and Regulatory Frameworks. Charles Di Leva Legal Department, World Bank September, 2011

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1 Review of Relevant Legal and Regulatory Frameworks Charles Di Leva Legal Department, World Bank September, 2011

2 Economic and sector work Economic and sector work, Carbon Capture and Storage in Developing Countries: a Perspective on Barriers to Deployment Objectives: to try to identify gaps that may prevent the development of cross-boundary and national CCS projects to suggest approaches to address the identified gaps to remove the regulatory and legal barriers to CCS deployment

3 Review of existing frameworks (1) A review of existing legal and regulatory frameworks International context United Nations Framework Convention on Climate Change (UNFCCC) & Kyoto Protocol United Nations Convention on the Law of the Sea (UNCLOS) Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (London Convention) & London Protocol Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal

4 Review of existing frameworks (2) Country and regional context Southern Africa Region: Botswana, Mozambique, South Africa, and within the regional electricity network, the Southern African Power Pool (SAPP) Balkan Region: Bosnia and Herzegovina, Kosovo, Serbia, and relevant EU Directives These two regions were selected based on: 1. their level of reliance on fossil fuels for power generation 2. regional energy and electricity network interdependency 3. potential to establish CCS regional networks linking CO2 emitting sources and sequestration sites across different countries within the region

5 Review of existing frameworks (3) Country and regional context Laws, acts, regulations, policies, decrees, ordinances, directives relevant for preventing negative environmental effects and human health risks arising from the transport and geological storage of carbon dioxide, such as: Constitution Laws/regulations governing wastes and hazardous wastes management; related to environmental and social impact assessment, public consultation, and information disclosure; regulating pollution (air, water, land) and liability; related to mining and extractive industries Regional policies, guidelines, protocols, and directives, including the following: Southern African Development Community (SADC) Protocol on Energy, SADC Energy Cooperation Policy and Strategy, SADC Energy Activity Plan Initiatives by Regional Electricity Regulators Association of Southern Africa (RERA), New Partnership for Africa s Development (NEPAD), African Energy Commission (AFREC), and SAPP EU Directives and Regulations (Environmental Impact Assessment; Large Combustion Plants; Integrated Pollution Prevention and Control; Shipments of Waste, and Environmental Liability)

6 Review of key legal issues Classification and legal definition of carbon dioxide and its legal definition; Jurisdiction over pipelines and reservoirs; Proprietary rights to cross-boundary sites and facilities; Regulatory and/or licensing (permitting) scheme; Long term management and liability issues arising out of accidents or leaks in domestic and cross-boundary CCS projects; Financial assurance for long-term stewardship; Third-party access rights to transportation networks, transit rights and land rights with regard to pipeline routes; Regulatory compliance and enforcement schemes; and EIA and public participation and consultation

7 Methodology Extensively consulted with World Bank country offices, law firms, law related organizations and relevant ministries to identify local consultants with appropriate expertise Knowledge sharing with other relevant organizations and institutions that have complementary experience and expertise in CCS Reviewed existing multilateral, regional, bilateral, and national legal and regulatory frameworks that are directly or indirectly linked to potential CCS development Assessed the capacity of existing institutions to handle the environmental and social issues associated with CCS Where there were gaps, drew from relevant legal frameworks, including, for example, frameworks for transnational oil/gas pipelines and those for transboundary hazardous wastes, to make recommendations for filling these gaps

8 High level findings At present there is no international convention dealing specifically with CCS Certain sectoral agreements and conventions are of general relevance to the CCS context, while some even regulate certain aspects of CCS (ie. conventions related to climate change and maritime environment) No dedicated legislation at national level related to CCS No explicit reference to CCS in existing laws Most countries that were analyzed appear to have basic elements that address certain aspects of the 9 key issues Rely on general rules and concepts (e.g. common law principles) relating to the relevant issues, such as pollution control and liability

9 Thank you