Summary/Abstract
Liability has long been raised as a significant barrier to the wide scale deployment of carbon capture and storage (CCS). Despite regulatory developments, the topic of liability continues to be considered by some CCS project developers, policy-makers and regulators as a critical issue and potential ‘show-stopper’ for the technology’s deployment.
This Global CCS Institute report, through policy and regulatory analysis as well as interviews with policy makers, regulators, lawyers, project proponents and representative from the insurance sector, seeks to challenge these views and make the case for a more commercially-minded view of liability. The report’s findings reveal that many of the liabilities borne under CCS-specific models are both familiar and eminently manageable. Furthermore, the report demonstrates proposed solutions and examples available in addressing liability for those seeking to invest in or operate CCS projects.
The report also examines the meaning of liability throughout the CCS lifecycle and the unique challenges presented by greenhouse emissions/climate liabilities. The critical role of government and the private sector in allocating and managing risks across the CCS project lifecycle, as well as the essential requirement for further engagement of the insurance sector to assist operators manage liabilities are also topics addressed through this timely report.