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The UK Liability Framework for the Transport of CO2 for Offshore Carbon Capture and Storage Operations

2017
Scholarly Work
Viktor Weber, Michael N. Tsimplis
International Policy/Guidance
Carbon Capture, Utilization and Storage → Transportation
CCS Liability, United Kingdom
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Summary/Abstract

CO2, captured via CCS, can be transported to offshore locations through pipelines or ships. Which method provides for a better deal for investors depends to an extent on the financial risk associated with these two methods, which in turn is linked with exposure to liability. This paper compares the potential liability arising from the carriage of CO2 by ships and by pipelines in the uk offshore context. The two modes of transport are governed by significantly different regimes, even though they concern the same material. It is argued that the transport of CO2 by ships and by pipelines poses similar risks and therefore they should have a similar liability regime. This would afford pipeline operators the economic advantages available to shipowners and incentivise investment in the transport phase of ccs.

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