Issues of liability during the post-abandonment phase of carbon capture and storage: The Case of Alberta, Canada

Carbon capture and storage (CCS) was proposed, in Alberta, Canada, as a solution to climate change. If legal barriers exist, however, they could delay progress on the development of CCS. Six critical elements of the long-term liability framework for CCS are examined in this paper: (1) ownership of sequestered CO2, (2) classification of CO2, (3) industry regulations, (4) possibilities for legal action, (5) government assumption of long-term liability, and (6) liability under emissions trading regimes and carbon taxation. This paper finds that Alberta’s current framework for assigning the long-term liability for damages arising from CCS is neither clear nor realistic. It concludes with policy recommendations to Alberta’s government, including a quick resolution to regulatory uncertainties and an immediate increase in the price of carbon.