Knowledge Sharing Conference

23 December 2024

ERIA discusses Regulatory Frameworks for CCS Development highlighting Norway’s experiences

The 19th ACN Knowledge Sharing Conference, 14 November 2024: In a significant step towards advancing Carbon Capture, Utilization, and Storage (CCUS) technologies across Asia, the 19th Asia CCUS Network Knowledge Sharing Conference convened on 14 November 2024. The virtual event brought together policymakers, legal experts, and industry representatives to discuss the critical elements of crafting effective CCUS regulations.

The conference opened with remarks by Mr. Shigeru Kimura, Senior Policy Fellow on Energy Affairs of ERIA. He emphasized the vital role of regulatory frameworks in facilitating CCUS deployment, particularly as the sector transitions from demonstration projects to full-scale commercial activities. Mr. Kimura highlighted Japan’s efforts in establishing a CCS business law as a foundational step, calling on other Asian nations to prioritize regulatory alignment to unlock regional CCUS potential. “Law and regulation must address both technical and business aspects to enable private sector participation,” he stated.

The conference, themed "What Makes Good Regulation of CCS," featured a keynote presentation by Ms. Ingvild Ombudstvedt, CEO/Lawyer of IOM Law and a Norwegian legal expert specializing in CCUS regulatory frameworks. In her presentation, Ms. Ombudstvedt emphasized the dynamic nature of CCUS regulation. Drawing on global case studies, she likened effective regulatory frameworks to a "three-legged stool" requiring robust technical standards, commercial viability, and legal adaptability. "Regulations must evolve with the industry," Ms. Ombudstvedt stated. "You need projects to test and refine the framework to ensure it remains effective and relevant."

Highlighting Norway’s success in integrating petroleum and CCUS laws, Ms. Ombudstvedt provided actionable insights for countries seeking to harmonize federal and local regulations. She cited the London Protocol as a pivotal international framework for offshore CO2 storage, advocating its adoption to streamline cross-border cooperation.

The conference also addressed the unique challenges faced by Asian countries in regulating CCUS. Dr Gusti Sidemen, CCUS Research Fellow at ERIA and event moderator, pointed out that while nations like Indonesia and Japan have introduced foundational CCUS regulations, ongoing revisions are essential to meet global standards. Dr. Sidemen remarked, “Effective regulation is not a one-size-fits-all solution. Each country must tailor its laws to its industrial priorities and environmental goals.”

The session underscored the growing momentum in Asia, with Malaysia and Thailand actively developing new regulatory measures, while Japan’s comprehensive CCS business law was showcased as a model for other nations.

An interactive panel discussion highlighted the importance of public trust and stakeholder engagement. Participants explored strategies to overcome public resistance to CCUS projects, including proactive communication campaigns and transparency in project risk assessments. Ms. Ombudstvedt praised Japan’s use of innovative public outreach methods, such as manga-style informational booklets, to demystify CCS technologies.

Drawing from European examples, it was emphasized that early and consistent public engagement is vital during the formation of regulatory frameworks. Failure to involve the public early has previously led to project cancellations due to opposition, as seen in several European cases. Establishing trust through transparency and communication remains a cornerstone of successful CCUS projects.

The conference also showcased the role of ISO standards in bridging gaps during framework development, with countries like Denmark successfully using these standards for demonstration projects. These technology-neutral and performance-based standards allow for flexibility and innovation in CCS projects while ensuring safety and reliability.

Discussions also underlined the importance of harmonizing regulatory frameworks to enable cross-border CO2 storage. Addressing challenges related to crediting schemes for CO2 stored in neighboring countries could facilitate smoother operations and expand collaboration opportunities.

Norway’s approach to integrating CCS regulations within its petroleum framework was highlighted as a model of harmonization. This dual-track system, which accommodates both petroleum-linked and independent CCS activities, exemplifies regulatory efficiency and adaptability. The country’s experience underscores the value of collaboration between regulatory authorities and industry stakeholders to overcome challenges and ensure project success.

The conference concluded with further remarks by Dr Sidemen, who called for enhanced regional cooperation. He urged Asian nations to align regulatory and technical standards to unlock CCUS’s full potential. “Cross-border agreements and knowledge-sharing are critical for accelerating CCUS deployment,” he affirmed.

The 19th Knowledge Sharing Conference marked another milestone in the Asia CCUS Network’s efforts to foster collaboration and innovation in CCUS. By addressing regulatory challenges and sharing global best practices, the network continues to support the region’s transition to a low-carbon future.

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