CCS under UNFCCC and related capacity building needs

CCS under UNFCCC and related capacity building needs CCS capacity building and technology development: needs and opportunities in developing countries 14 September 2009, Washington, USA Dr. Iulian Florin Vladu Manager, Adaptation Technology and Science Programme UNFCCC secretariat 1

CCS under the UNFCCC Where are we under the climate change negotiations? CCS - under the current climate change regime Development and transfer of technologies (COP, SBSTA and SBI) CCS in geological formations as CDM activities (COP/MOP, SBSTA methodological issues under KP) IPCC guidelines for national greenhouse gas inventories (COP, SBSTA - methodological issues under the Convention) CCS - under the future climate change regime Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP) Iulian Florin VLADU UNFCCC secretariat 2

Technology under the UNFCCC Recent work EGTT: Prepared three papers as mandated by decision 3/CP.13» Strategy paper for the long-term perspective beyond 2012, including sectoral approaches, to facilitate the development, deployment, diffusion and transfer of technologies under the Convention» Recommendations on future financing options for enhancing the development, deployment, diffusion and transfer of technologies under the Convention» Performance indicators to monitor and evaluate the effectiveness of the implementation of the technology transfer framework (draft) Updated the synthesis of Technology Needs Assessment (TNAs) GEF - implementation of the Poznan strategic programme on technology transfer that consists of three funding windows: TNAs($9m); technology transfer pilot projects ($40m); dissemination of technologies and practices ($1m) Iulian Florin VLADU UNFCCC secretariat 3

SBSTA What have we done on CCS under technology? (I) Requested the IPCC to prepare a paper/report on CCS The Special Report on Carbon Dioxide Capture and Storage was prepared and presented to SBSTA 23 An in-session workshop on CCS was held at SBSTA 24 (FCCC/SBSTA/2006/7). Participants exchanged views and experiences on a range of activities relating to CCS Experiences from demonstration and pilot projects Relevant provisions of the 2006 IPCC Guidelines for National Greenhouse Gas Inventories Capacity building for development of this technology and other related issues Participants identified potential areas where further work was needed to advance carbon dioxide capture and storage Iulian Florin VLADU UNFCCC secretariat 4

SBSTA What have we done on CCS under technology? (II) Issues that emerged for further consideration: Initiate additional pilot and large-scale demonstration projects, including for the power sector with storage sites in different geological settings. Develop best practices manuals as a practical and technical guide for design and implementation of CO 2 storage associated with EOR Research and development to bring down the costs, in particular the costs associated with CO 2 capture, and increase capture and overall efficiency Build trust in storage by addressing the issue of permanency, by sharing experiences, methods and tools developed by the oil and gas industry for EOR and by establishing standards and guidelines for site selection and site management (industry and governments) Iulian Florin VLADU UNFCCC secretariat 5

SBSTA What have we done on CCS under technology? (III) Issues that emerged for further consideration: Develop regulatory frameworks that address site selection, risk assessment and long-term monitoring. Develop regulations for CO 2 storage building upon existing effective regulatory frameworks that may promote consistent and environmentally sound approaches to CCS across the world Promote effective public policy to seed the development of a large and economic CO 2 supply and infrastructure as well as mechanisms for monetizing credits for CO 2 storage Identify and promote incentives to make this option attractive (e.g., policy frameworks, market eligibility for mechanisms such as CDM and EU ETS) and remove barriers to technology transfer and diffusion Iulian Florin VLADU UNFCCC secretariat 6

SBSTA What have we done on CCS under technology? (IV) Identified technology needs of developing countries Technology needs assessments (TNAs) are central to the work on technology transfer. They follow a country-driven approach, bringing together stakeholders to identify needs and develop plans to meet those needs The first synthesis of technology needs assessments highlights priority technology needs based on information contained in 23 TNAs and 25 initial national communications submitted by non-annex I Parties (FCCC/SBSTA/2006/INF.1) Second synthesis report on technology needs identified by Parties not included in Annex I to the Convention in 70 technology needs assessments (TNAs) and 39 national communications (FCCC/SBSTA/2009/INF.1) Iulian Florin VLADU UNFCCC secretariat 7

SBSTA What are commonly identified mitigation technologies in TNAs? Per cent of Parties [%] 100 90 80 70 60 50 40 Energy - 91.7% of Parties Industry - 79.2% Transport - 50% Generation - 91.7% Buildings & residential - 87.5% Transmission - 25% Agriculture & forestry - 33.3% Waste management - 29.2% Other - 4.2% 100 90 80 70 60 50 40 # of technologies identified 30 30 20 20 10 10 0 RET CHP (cogeneration) DSM GTCC Unspecified power generation CT Coal Legacy improvements Advanced fossil fuel Other Energy efficient appliances Green buildings materials & design Other District heating Miscellaneous Industrial energy efficiency Boilers Miscellaneous industries Cement Production High efficiency motors Steel industry Furnaces Bread making industry Others Mining Fuel switching Aluminium industry Vehicles Management & policy improvements Facilities Unspecified public transport Freight Forestry Crop management Other Miscellaneous Miscellaneous 0 Iulian Florin VLADU UNFCCC secretariat 8

TNAs What are commonly identified capacity building need in TNAs? Improve existing technology R&D networks and institutions and to improve the climate change monitoring networks Raising public awareness of the need to implement energy-efficiency measures in the buildings and residential sector Europe and the CIS: dissemination of information on available funding opportunities at the national and European levels; Africa: improve institutions and infrastructure, and to develop training and human capacity Asia and the Pacific: building institutional capacities to support the transfer of ESTs, further encouraging the innovation process and building up targeted technical and scientific skills to utilize the development potential of indigenous technologies Latin American and Caribbean: human and organizational capacity, as well as the capacity to assess information and efficient networking Iulian Florin VLADU UNFCCC secretariat 9

SBSTA CCS in geological formations as CDM activities (I) SBSTA 24 (2006): workshop on CCS as CDM project activity boundary, permanence & leakage CMP.2: considered the public call, workshop report & EB recommendation of proposed methodologies and laid out a road map to CMP.4 EB to continue to consider proposals for geological storage approve only after guidance from CMP Encouraged Parties, intergovernmental organizations, nongovernmental organizations and others to organize global and regional workshops Parties considered inputs from IGOs, NGOs & Parties, at SBSTA 27, on:» Long-term physical leakage (seepage) levels of risks and uncertainty» Project boundary issues (such as reservoirs in international waters, several projects using one reservoir) and projects involving more than one country (projects that cross national boundaries) Iulian Florin VLADU UNFCCC secretariat 10

SBSTA CCS in geological formations as CDM activities (II)» Long-term responsibility for monitoring the reservoir and any remediation measures that may be necessary after the end of the crediting period» Long-term liability for storage sites» Accounting options for any long-term seepage from reservoirs» Criteria and steps for the selection of suitable storage sites with respect to the potential for release of greenhouse gases» Potential leakage paths and site characteristics and monitoring methodologies for physical leakage (seepage) from the storage site and related infrastructure for example, transportation» Operation of reservoirs (for example, well-sealing and abandonment procedures),dynamics of carbon dioxide distribution within the reservoir and remediation issues» Any other relevant matters, including environmental impacts Consider a synthesis report at SBSTA 28 and another at SBSTA 29 recommended to CMP.3 (Bali) with a view to a decision at CMP.4 Iulian Florin VLADU UNFCCC secretariat 11

SBSTA CCS in geological formations as CDM activities (III) Views from Parties, IGO/NGO s first synthesis report Technical views: Methodological issues: Legal Issues: Policy Issues: Consensus on four types of emissions: fugitive; indirect; seepage; & storage site breach Computer modeling is needed for both, site selections, monitoring & early warning CCS is feasible in a range of different storage types Potential leakage pathways are identifiable & remediation of sites is important Flexibility is required to allow for improvements in knowledge & experience in CCS & to accommodate different geological conditions Project boundaries can be defined by emission sources (sources & leakage pathways) Site characterization & selection - most critical elements to ensure long-term or permanent ERs (main objective to identify ability to structurally, physically or chemically trap CO 2 ) 2006 IPCC Guidelines provides basis for this Site selection must adhere to rigorous & consistent application of procedures 2006 IPCC Guidelines provides useful guidance for cross-border CCS projects No consensus on whether a national regulatory regime should be a prerequisite for CCS project activities in a host country or if CDM would effect legislation No consensus on ultimate long-term liability - host country (seller/host liability) or holder of CERs (buyer/user liability) CERs from CCS projects should be permanent and fungible with other CERs no discounting Some proposed that alternative mechanisms or rules are needed No real consensus on acceptable levels of risk or uncertainty Iulian Florin VLADU UNFCCC secretariat 12

SBSTA CCS in geological formations as CDM activities (IV) Views from Parties, IGO/NGO s second synthesis report Technical views: Methodological issues: Legal Issues: Policy Issues: Financial Issues: Other Issues: Consensus that leakage pathways beyond the near-term project boundaries, is critical No real consensus if there is sufficient experience with CCS to decide whether the technology offers a safe, secure, widespread and long-term mitigation option for inclusion and if experience to date with reservoir operation is sufficient to take an informed view of the risk of seepage over the longer term and over a wider area Broad agreement that CCS projects can be energy intensive, and emissions associated with the energy required for capture, transport and storage should be included within the project boundary, as well as any fugitive emissions from the CCS process No agreement on if it can be sufficiently guaranteed that sites are selected that are able to isolate CO 2 from the atmosphere safely over very long periods of time and whether the CDM M&Ps are applicable to CCS Agreement on the need for robust national and international legal frameworks and legislation are necessary, postclosure obligations beyond the end of a CCS project and capacity-building No consensus on whether the CDM institutional structures are sufficient to cope with and address the specific regulatory and assurance requirements potentially posed by CCS projects as CDM project activities and the size of financial liabilities potentially posed by CCS projects in terms of corrective actions for any damages Consensus that CCS is an important part of the overall portfolio of GHG mitigation options, whether it is in the CDM or not No agreement on whether CCS demonstration should be undertaken in Annex I Parties, non-annex I Parties, or both, if there should be a pilot phase for inclusion of CCS as a CDM project activity and managing the risk of seepage over the long term Consensus that additional financing is required for projects with CCS as compared to equivalent projects without CCS No agreement on whether inclusion of CCS as a CDM project activity will adversely affect carbon market prices, the degree to which CCS will develop without carbon market incentives, particularly in non-annex I Parties, if it could create perverse incentives for more fossil fuel extraction and consumption or will negatively affect the equitable distribution of CDM projects Agreement that capacity-building is required for CCS projects in non-annex I Parties No agreement on the degree to which CCS contributes to sustainable development, whether the current CDM institutional structure is sufficient to handle CCS, or whether CCS could lead coal and gas to displace less-carbonintensive fuels Iulian Florin VLADU UNFCCC secretariat 13

SBSTA CCS in geological formations as CDM activities (V) CMP 4 by its decision 2/CMP.4 requested the CDM Executive Board to assess the implications of the possible inclusion of CCS in geological formations as CDM project activities, taking into account technical, methodological and legal issues, and report back to CMP 5 The SBSTA 30 invited Parties to submit to the secretariat further views on issues relevant to the consideration of CCS in geological formations as CDM project activities Iulian Florin VLADU UNFCCC secretariat 14

SBSTA What have we done under GHG inventories? (I) Requested Parties to report CCS activities in national communications and requested the IPCC to include CCS in the revised guidelines for national GHG inventories 2006 IPCC Guidelines for National Greenhouse Gas Inventories gave a complete methodology for CCS that was consistent with the remainder of the 2006 guidelines. The 2006 GL provided guidance for the capture and transport of CO 2 and for geological storage SBSTA considered the guidelines and Recommended their use on voluntary basis (gain experience) Requested Partiers submissions (FCCC/SBSTA/2009/MISC.3). These submissions also contained information on further considerations related to the future revision of the UNFCCC Annex I reporting guidelines) Iulian Florin VLADU UNFCCC secretariat 15

SBSTA What have we done under GHG inventories? (II) The SBSTA considered experiences in 2009 and agreed that the process for Annex I Parties to implement the use of the 2006 IPCC Guidelines should be through a revision of the UNFCCC Annex I reporting guidelines, including the common reporting format (CRF) tables The SBSTA also agreed to launch a work programme in 2010 for the revision of the UNFCCC Annex I reporting guidelines, including the CRF tables, with a view to recommending revised UNFCCC reporting guidelines for adoption by the COP, for regular use starting in 2015 Iulian Florin VLADU UNFCCC secretariat 16

SBSTA What have we done under GHG inventories? (III) The SBSTA further agreed on the scope of the work programme, covering the revision of the UNFCCC Annex I reporting guidelines and addressing the methodological issues related to reporting when using the 2006 IPCC Guidelines (should cover, inter alia: (b) Carbon dioxide capture and storage) The SBSTA noted the need for capacity-building to facilitate all Parties use of the 2006 IPCC Guidelines and the work of the IPCC that is helping to facilitate the use of these guidelines. It invited the IPCC and other relevant organizations to strengthen their efforts in this area, including on the elements of the work programme (including CCS) Iulian Florin VLADU UNFCCC secretariat 17

AWG-LCA What are current negotiations on CCS? (I) Economic and social consequences of response measures (1 b (vi)) [Adverse economic and social consequences of response measures shall be addressed by various means, including but not limited to promoting, supporting and enabling economic diversification, funding, insurance and the development, transfer and dissemination of win-win technologies in the affected countries, such as cleaner fossil fuel technologies, gas flaring reduction, and carbon capture storage technologies (Para 160)] Enhanced action on development and transfer of technology (1 d (ii)) Promote diversified energy particularly carbon capture & storage technology (Para. 180 alt to (i)). Iulian Florin VLADU UNFCCC secretariat 18

AWG-LCA What are current negotiations on CCS? (II) Technology road maps Removing [Obstacles] barriers to the development, deployment, diffusion and transfer of [win-win technological options such as carbon capture and storage, clean fossil fuel, non-energy use of fossil fuel technologies] [identified technological options] (Para. 180 (b)); Institutional arrangements, including funds An executive body on technology, as a subsidiary body of the Convention, to enhance the implementation of the Convention by enhancing action on technology development and transfer to support action on mitigation and adaptation. The executive body shall, inter alia:» (e).3 Advise on promoting technology transfer and diffusion in all relevant sectors, especially carbon capture and storage technology Iulian Florin VLADU UNFCCC secretariat 19

AWG-LCA What are current negotiations on CCS? (III) C. Capacity-building 199. [International cooperation [shall][should] be enhanced to support the capacities of developing country Parties to implement mitigation and adaptation [capacity-building] actions, including, inter alia:» (e) [Capacity-building needs identified in national communications, national adaptation plans, NAMAs, national REDD-plus plans, and national technology road maps and the carbon capture and storage project activities;]» (g).1 Build, develop, strengthen, enhance, improve, existing scientific and technical skills, capabilities and institutions particularly in developing countries, to enable them to assess, adapt, manage and develop technologies that have: (ii) win-win solutions including carbon capture and storage technologies; Iulian Florin VLADU UNFCCC secretariat 20

AWG-KP What are current negotiations on CCS? (I) Amend Annex A to include the following sectors: [Energy] Carbon dioxide transport and storage» Transport of CO 2» Injection and storage of CO 2» Other Iulian Florin VLADU UNFCCC secretariat 21

AWG-KP What are current negotiations on CCS? (II) CCS under the CDM Option 1: Decides that activities relating to carbon dioxide capture and storage [in geological formations] shall not be eligible as project activities under the clean development mechanism in the second [and subsequent] commitment period[s]; Option 2: Decides that activities relating to carbon dioxide capture and storage [in geological formations, including saline aquifiers and excluding ocean sequestration,] shall be eligible as project activities under the clean development mechanism in the second [and subsequent] commitment period[s][, provided that, for the second commitment period, no more than two projects per region shall be registered]; Iulian Florin VLADU UNFCCC secretariat 22

AWG-KP What are current negotiations on CCS? (III) Requests the SBSTSA to recommend modalities and procedures for clean development mechanism project activities relating to carbon dioxide capture and storage [in geological formations], with a view to forwarding a draft decision on this matter to the COP/MOP for adoption at its [sixth] [seventh] session, including modalities and procedures in relation to:» (a) Non-permanence, including long-term permanence» (b) Monitoring, reporting and verification» (c) Environmental impacts» (d) The definition of project boundaries» (e) Issues of international law» (f) Issues of liability» (g) The potential for perverse outcomes» (h) Safety» (i) Insurance coverage for compensation of damage Iulian Florin VLADU UNFCCC secretariat 23

Final thoughts CCS is considered under within various agenda items and in the negotiations on the future climate change regime Governments have an important role in enabling favourable environments for development, deployment and transfer of climate friendly technologies, including CCS. Capacity building is essential for the deployment of CCS technological systems in developing countries The challenge is to identify what international policies could be agreed upon under the Convention to stimulate national action on enabling environments that would accelerate the development and deployment of CCS technological systems (e.g. NAMAs?) Iulian Florin VLADU UNFCCC secretariat 24

THANK YOU! fvladu@unfccc.int Iulian Florin VLADU UNFCCC secretariat 25