CCS OVERVIEW OF THE MODALITIES AND PROCEDURES AND

CCS – OVERVIEW OF THE MODALITIES AND PROCEDURES AND THEIR IMPLEMENTATION SDM JOINT COORDINATION WORKSHOP Bonn, Germany, 24 -25 March 2012

Key elements of the CCS modalities and procedures • Detailed specifications for site selection (Appendix B. 1) • Risk and safety assessment (Appendix B. 2) • Environmental and socio-economic impact assessments (Appendix B. 6) • Detailed provisions on monitoring (Appendix B. 3) • Financial provisions (Appendix B. 4) • Detailed participation requirements for host countries (section F) • Changes to the CDM registry • Provisions for liability (Appendix B. 5) • Accounting for non-permanence / seepage (section K) 2

Liability and permanence – general approach Geological storage risks and potential impacts Impacts to ecosystems, health, property etc Seepage at surface • Human health & ecosystem impacts • Damage to property and/or resources Liability Annex para 1 (j) Geochemical effects • Effects of reactive processes with CO 2 in the subsurface (e. g. groundwater) Permanence Geomechanical effects • Induced seismicity • Displacement of brines • Damage to subsurface property (e. g hydrocarbons) Seepage at surface • CO 2 back to the atmosphere/water column Net reversal of storage Supporting elements for liability & net reversal Host country laws established para 8 Transfer of liability Appendix B. 5 Annex para 1 (l) Obligation to submit Verification Report every 5 years CER reserve ([5] percent) - para 21 (b) Obligation for the PPs to cancel compliance units to address non-permanence - para 24 Obligation for either host or buyer country to cancel compliance units to address non-permanence – p. 26 Financial Provision Appendix B. 4 3

A staged approach towards implementation 1. Enabling the submission of methodologies and the Focus for accreditation of DOEs: 2012 ◦ Procedures and forms for methodology submissions ◦ Revision of the accreditation standard 2. Enabling the registration of CCS project activities: ◦ ◦ Preparation in 2012, Revision of the Project Standard, Validation & Adoption in Verification Standard, etc 2013 Procedures and forms for requesting for registration of projects 3. Enabling the issuance of CERs from CCS project activities: ◦ Procedures and forms for requesting issuance ◦ Changes to the CDM registry and ITL 2013/ 2014 4

Next steps in 2012 • EB 67: ◦ Procedures, forms and guidelines for the submission and assessment of CCS methodologies ◦ Amendment of TORs for the Boards support structure to establish a CCS Working Group - CCS experts and Meth Panel members - Meetings only as needed ◦ Revision of the accreditation standard to enable accreditation of DOEs for CCS project activities - Possible new sectoral scope 16 for the storage of CO 2 • EB 70: ◦ Concept note for the revision of standards, procedures, forms and guidelines to enable the registration of CCS project activities 5

Thank you for your attention! 6