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Liability and Compensation for Damage Resulting from CO2 Storage Sites

2016
Scholarly Work
Michael Faure
International Policy/Guidance
Carbon Capture, Utilization and Storage → Carbon Capture and Storage
CCS Liability
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Summary/Abstract

The goal of this article is to sketch how CCS liability rules could be developed, and to present a compensation mechanism that takes into account the particular difficulties arising with CCS, especially the long-tail character from the potential damage of a release of CO2. The article argues that such a mechanism should both provide appropriate liability rules and allow for compensation of related damages. Furthermore, that the goal of a liability and compensation scheme is to address how the long-term liability and compensation issues can be solved, and to indicate what policymakers can do to stimulate market development.

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