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376 IPCC Special Report on Carbon dioxide Capture and Storage 9.3.1.2 Attribution of physical leakage from storage in international/regional territories or shared facilities and the use of engineering standards to limit physical leakage reference to CCS in the Kyoto Protocol states that Annex I countries need to “research, promote, develop and increasingly use CO2 sequestration technologies”17. The Marrakech Accords further clarify the Protocol regarding technology cooperation, stating that Annex I countries should indicate how they give priority to cooperation in the development and transfer of technologies relating to fossil fuel that capture and store greenhouse gases (Paragraph 26, Decision 5/CP.7). No text referring explicitly to CCS project-based activities can be found in the CDM and JI-related decisions (Haefeli et al., 200). Further, Haefeli et al. (200) note that CCS is not explicitly addressed in any form in CO2 reporting schemes that include projects (i.e., the Chicago Climate Exchange and the EU Directive for Establishing a Greenhouse Gas Emissions Trading Scheme (implemented in 200) along with the EU Linking Directive (linking the EU Emissions Trading Scheme with JI and the CDM). At present, it is unclear how CCS will be dealt with in practice. According to Haines et al. (200), the eligibility of CCS under CDM could be resolved in a specific agreement similar to that for land use, land-use change and forestry (LULUCF) activities. As with biological sinks, there will be legal issues as well as concerns about permanence and economic leakage, or emissions outside a system boundary. At the same time, CCS could involve a rather less complex debate because of the geological time scales involved. Moreover, Haefeli et al. (200) noted that guidelines on how to account for CO2 transfers between countries would need to be agreed either under the UNFCCC or the Kyoto Protocol. Special attention would need to be given to CO2 exchange between an Annex I country and a non-Annex I country, and between an Annex I country party to the Kyoto Protocol and an Annex I country that has not ratified the Kyoto Protocol. 9.3.2.1 Emission baselines The term ‘baseline’, used mostly in the context of project- based accounting, is a hypothetical scenario for greenhouse gas emissions in the absence of a greenhouse gas reduction project or activity (WRI, 200). Emission baselines are the basis for calculation of net reductions (for example, storage) of emissions from any project-based activity. Baselines need to be established to show the net benefits of emissions reductions. The important issue is to determine which factors need to be taken into account when developing an emissions baseline. At present, there is little guidance on how to calculate net reductions in CO2 emissions through CCS project-based activities. An appropriate baseline scenario could minimize the risk that a project receives credits for avoiding emissions that would have been avoided in the absence of the project (Haefeli et al., 200). The previous section deals largely with the possibility that CO2 emissions stored now will be released at a later time. It also introduces the possibility that emissions stored now will result in additional, current emissions in different countries or in different sectors. CO2 injected into the ocean could leak physically from international waters. Accounting for stored CO2 raises questions such as responsibility for the emissions from energy used in CO2 transport and injection, especially if transport and/ or storage is in a developing country or in international waters. Similarly, questions about physical leakage of stored CO2 will need to address liability for current year physical leakage that occurs in developing countries or from international waters. These questions may be especially complex when multiple countries have injected CO2 into a common reservoir such as the deep Atlantic Ocean, or into a deep aquifer under multiple countries, or if multiple countries share a common pipeline for CO2 transport. There may also be a need for international agreement on certification of CCS credits or performance standards for CCS projects. Standards would minimize the risk of leakage and maximize the time for CO2 storage. Performance standards could minimize the possibility of parties looking for the least cost, lowest quality storage opportunities - opportunities most susceptible to physical leakage - when liability for spatial or temporal leakage is not clear. Performance standards could be used to limit the choice of technologies, quality of operations, or levels of measurement and monitoring. 9.3.2 Accounting issues related to Kyoto mechanisms (JI14 , CDM15, and ET16) CCS is not currently addressed in the decisions of the COP to the UNFCCC in relation to the Kyoto mechanisms. Little guidance has been provided so far by international negotiations regarding the methodologies to calculate and account for project-related CO2 reductions from CCS systems under the various project- based schemes in place or in development. The only explicit 1 Kyoto Protocol Article 6.1 ‘For the purpose of meeting its commitments under Article 3, any Party included in Annex I may transfer to, or acquire from, any other such Party emission reduction units resulting from projects aimed at reducing anthropogenic emissions by sources or enhancing anthropogenic removals by sinks of greenhouse gases in any sector of the economy...’ 1 Kyoto Protocol Article 12.2 ‘The purpose of the clean development mechanism shall be to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments under Article 3.’ 9.3.2.2 Leakage in the context of the Kyoto mechanisms 16 Kyoto Protocol Article 17 ‘The Conference of the Parties shall define the relevant principles, modalities, rules and guidelines, in particular for verification, reporting and accountability for emissions trading. The Parties included in Annex B may participate in emissions trading for the purpose of fulfilling their commitments under Article 3. Any such trading shall be supplemental to domestic actions for the purpose of meeting quantified emission limitation and reduction commitments under that Article.’ The term ‘Leakage’ is defined according to Marrakech Accords as ‘the net change of anthropogenic emissions by sources and/ or removals by sinks of greenhouse gases which occurs outside 17 Article 2, 1(a) (iv) of the Kyoto Protocol.PDF Image | CARBON DIOXIDE CAPTURE AND STORAGE
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