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Establishment of a Policy and Legal Framework for Carbon Capture Storage (CCS) Technology Development in Taiwan: A Critical Review Review Anton Ming-Zhi Gao (高銘志) [email protected] Associate Professor, The Institute of Law for Science and Technology (ILST), National Tsing Hua University, Taiwan Secretary General, Taiwan Environmental LawAssociation BoardMember, Taiwan Energy Law Association 8 th International Scientific Conference on Energy and Climate Change October 2015 @ KEPA 1

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Page 1: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Establishment of a Policy and Legal Framework for Carbon Capture

Storage (CCS) Technology Development in Taiwan: A Critical

ReviewReviewAnton Ming-Zhi Gao (高銘志)

[email protected]

Associate Professor, The Institute of Law for Science and Technology (ILST), National Tsing Hua University, Taiwan

Secretary General, Taiwan Environmental Law Association

Board Member, Taiwan Energy Law Association

8th International Scientific Conference on Energy and Climate Change October 2015 @ KEPA

1

Page 2: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

About My Research Works on CCS

Conference

• CCS Legal conference May 2012

BOOK:

• Chi et al.(including: Anton Ming-Zhi Gao), The Recommendation Legal Framework of Developing Carbon Capture and Storage in Taiwan, April 2012, published by INER, Taiwan.(ISBN:978-986-03-2481-5)( NSC101-3113-P-301-008)published by INER, Taiwan.(ISBN:978-986-03-2481-5)( NSC101-3113-P-301-008)

Project on CCS Law:

• CO-PI: National Energy Program: A Study on the Establishment of Legal Framework of Carbon Capture and Storage(CCS) in Taiwan, 2010-2012, National Science Council(NSC) & Taiwan Institute of Economic Research.

Articles

• Anton Ming-Zhi Gao, Ming-Shan Lee, A study on International Energy Agency Model Regulatory Framework and Directive 2009/31/EC-Inspiration for Taiwan’s Legal System, in Liu ed., The Proceeding of the 15th National Technology Legal Conference, p.725-778 (2012).( ISBN:978-986-03-0058-1)

• Anton Ming-Zhi Gao, The Application of Clean Development Mechanism to Carbon Capure and Storage: Current Situation and Challenges, Volume 9: Issue 1, pp. 87-163, Taiwan International Law Journal (2012).

• Anton Ming-Zhi Gao, The International Marine and Environmental Legal Issues of Developing Carbon Capture and Storage, Taiwan International Law Journal, Vol. 7, Issue 1, pp.33-82.

• Gao, Anton Ming-Zhi, “The Application of EuropeanSEA Directive in the Carbon Capture and Storage (CCS) Decision Makings: the Issue of Screening”, 17(6) European Energy and Environmental Law Review 341-370 (2008).

2

Page 3: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The ONLY legal research team under the consortium of National Energy Research Programme

Phase I 2010-2012

• A Study on the Establishment of Legal Framework of Carbon Capture and Storage(CCS) in Taiwan, 2010-2012Storage(CCS) in Taiwan, 2010-2012

Phase II 2013~

• Legal Barriers of Taiwan in deployment of four key low carbon technologies

• Offshore wind power

• Carbon capture and storage

• Geothermal electricity

• Marine electricity

3

Page 4: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

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Page 5: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

5

Drafting LAWInside government

communication

Public communication

Media communication

Page 6: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

I. Introduction

6

Page 7: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Carbon Capture and Storage technology

7

Page 8: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Horrible Image of CCS!!!!!Horrible Image of CCS!!!!!

• Recent headline in Newspaper (25 June 2013)

• Shock images of Dead people and Dead cattle !!!

8

Page 9: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Old story repeated!Similar breaking news in 2006A perfect project, BUT FAILED

The CPC was scheduled to re-use the existing oil well and pipeline for CCS purpose under Mining Act in 2006.

This draft plan led to the outcry of local citizen.

The plan was stopped.

9

Page 10: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Motivation: Research questions

Q1. Would regulation kill or facilitate the development

of CCS?of CCS?

Q2 what is a Successful and

Proper Overall framework

to promote CCS?

10

Page 11: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Overall Framework to Promote CCS by this author

Technology R&D

Public Perception and Acceptance

X•Good Policy

•Good law

•Sufficient Incentives

•“appropriate and not too over” regulations

Well functioning competent authority

•small demonstration

•→large demonstration

•→large scale commercialization application

Implementation:

X

http://online.wsj.com/article/SB124024

483430835389.html

11

Page 12: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The foundation of CCS Scheme

Policy & law

Authority and Authority and bureaucratic issues

Public perception

Technology

12

Page 13: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Rationale of CCSIEA’s six key emission reduction technologies

2035 22%(CCS); RES(21%)

In terms of supply side.

•• 19% of CCS 19% of CCS hints that fossil fuels will still play dominant role in our energy sector by mid-21st century

• Renewables and CCS with coal or gas need to develop simultaneouslysimultaneously.

• If the role of nuclearnuclear decreases as a result of the Fukushima accident, the role of RES and CCS would increase.

13

Page 14: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized countries (99.4% energy import99.4% energy import)

RES:

• Under the ambitious 2011 New Energy Policy 2011 New Energy Policy of Taiwan, the development target for PV and wind power is 4200 MW and 3100 MW in 2030.

Gas

• The government will conduct a large expansion of the use of LNGLNG. !!Taiwan needs CCS

• The government will conduct a large expansion of the use of LNGLNG.

• Yet there may be natural geographical features limiting the further expansion of LNG.

• The increasing LNG still needs CCSCCS for emission reduction!

Coal:

• Coal will still be the most stable and cheapestmost stable and cheapest energy source and feedstock for refinery industry as well as electricity producers for Taiwan

• Commercializing the coal gasification with CCS technology is the target of our R&D investment

• Integrating the intermittent electricity from renewable energy with the CO2 captured by the CCS projects for producing chemicals shall be beneficial to create the win-win status

14

!!Taiwan needs CCS

Page 15: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The main outline of my presentation

Tech

no

log

y R

&D

Au

tho

rity

Policy

Law

Imp

lem

en

tati

on

: R&D

pilot/Small demo

Large demo

Large scale

Tech

no

log

y R

&D

Imp

lem

en

tati

on

:

Large scale application/Commercialization

15

Page 16: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

II. Technology R&D II. Technology R&D

16

Page 17: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

R&D Funding is the key:Situation of IEA and Europe:

• A lot of research funding are provided by international organization, EU FP, national government and private companies (Shell, Alstom, etc.) around the worlds.

• A lot of successful projects around the worlds, e.g., Sleipner, Norway e.g., Sleipner, Norway

http://www.globalccsinstitute.com/projec

ts/browse17

Page 18: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

R&D in Taiwan • Main R&D funding source:

• Tai-Power

• CPC

• NSC National Energy Programme: Master Programme on Clean Coal

• EPA’s funding

• MOEABOE’s funding

• The involvement of Main thinking tanks: ITRI, CIER, TIER, SinotechConsultants, Inc., etc.

• Diverse research aspect: technology, law, policy, strategy, public perception, etc.

Weakness:

1. too many R&D and too many feasible study.

2. few capture demo projects.

3. Lack of demo and drilling of carbon storage.(under progress) 18

Page 19: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Networking Platform CCS related Alliance in Taiwan CCS related Alliance in Taiwan

• MOEA(economic ministry): CCS R&D Alliance

• EPA (environmental ministry): CCS Strategy Alliance

19

Page 20: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Still one successful story on calcium looping • Capture

•R&D Oscar R&D 100 Award

20

Page 21: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

III. Well functioning and coordinated

competent authoritycompetent authority

21

Page 22: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The Comprehensive nature of CCS Application:a crosscross--ministerialministerial and crosscross--departmentdepartmentissues

Science authority

Environmental Climate Environmental authority

Economy authority

Mining (oil gas) authority

Climate authority

22

Page 23: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Lessons from other countries

Oil and petroleum authority (Norway)

Mining Authority

(Germany)The common feature

• The needs to resolve the

John Gale’s reflection

CCS Office, DECC

(Norway)

Energy and climate

Authority (UK)

Energy authority

(US)

23

• The needs to resolve the

“ hydra-headed bureaucracy”;

• The needs to avoid

“Everybody's business is

nobody s business”

Page 24: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Taiwan: Unresolved multiUnresolved multi--authorities issues authorities issues

Three key authorities

• EPA

• MOEA

• NSC

My opinion:

•• EPAEPA should take main job after

the governmental

reorganization, as it will become • NSC

Weakness:

• The vacuum of EHS regulations:

• In spite of EHS concerns and RD&D needs suggested by this author and other related research team, the EPA didn’t draft any CCS Regulations. (info: the end of July 2013 )

• Easy case for EOR; Difficulty for new drillings

• Insufficient further incentives

• MOEA: inability to provide more sufficient funding to push CCS beyond R&D or small pilot

• CPC and TaiPower: further demo could be lack of funding 24

reorganization, as it will become

the authority of Mining Act,

Climate and Environmental laws

Page 25: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The Example of Multi-authorities Issues

Phase Activity Relevant

Authority

Explorati

on

Permit

Assessment

Selection a storage site

Characterization

Bureau of Mine?

Water Resources

Agency?

Phase Activity Relevant Authority

Closure Financial security

Monitoring

Verification

Bureau of Mine?

Water Resources

Agency?

Post-

closure

Transfer of

Responsibility UnknowStorage

Permit

Baseline Survey

Routine Reporting

Bureau of Mine?

Environmental

Protection

Administration

Executive?

Operatio

n

Injection

Monitoring

Corrective measures and

remediation measures

Bureau of Mine?

Water Resources

Agency?

closure

Pre -

transfer

Monitor

ing

Phase

Responsibility

Financial

mechanism

Monitoring

Unknow

n

Post-

Transfer

Monitoring

Management

Corrective

measures and

remediation

measures

Unknow

n25

Page 26: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

IV. “POLICY” Support IV. “POLICY” Support

26

Page 27: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Multi-Policies relating to CCS

Energy

Climate Marine policy etc.

Technology, reseach and innovation

Industiralpolicy

Economic policy

policy etc.

27

Page 28: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The Likely Successful Story: IEA and EU: Multi policies supporting

CCSIEA: technology aspect, strategic, regulatory aspect

• CCS strategy and policy

• CCS legal and regulatory issues

• CCS global collaboration

• CCS technical and economic issues

EU:

• COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Sustainable power generation from fossil fuels: aiming for near-zero emissions from coal after 2020 {SEC(2006) 1722}{SEC(2006) 1723} {SEC(2007) 12}

• CCS technical and economic issues{SEC(2006) 1722}{SEC(2006) 1723} {SEC(2007) 12}

• COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Supporting Early Demonstration of Sustainable Power Generation from Fossil Fuels{COM(2008) 30 final} {SEC(2008) 47}{SEC(2008) 48}

• 28/03/2013 - 02/07/2013: Communication on The Future of Carbon Capture and Storage in Europe

• 20/12/2012 - 15/03/2013: Communication on energy technologies and innovation

28

Page 29: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

EU policies supporting CCS

A POLICY FOR ENERGY

• A strategy for competitive, sustainable and secure energy

• European Energy Programme for

MARKET-BASED INSTRUMENTS

• Greenhouse gas emission allowance trading scheme

• Community framework for the taxation of energy

RESEARCH AND INNOVATION

• SET-Plan for the development of low carbon technologies

• Sustainable power generation from fossil fuels

FINANCIAL INSTRUMENTS

• Competitiveness and Innovation Framework Programme (CIP) (2007-2013)

• Seventh Framework Programme (2007 to Programme for

Recovery

• Energy Security and Solidarity Action Plan

• An Energy Policy for Europe

• Green Paper: A European strategy for sustainable, competitive and secure energy

taxation of energy products and electricity

fuels

• Demonstration of the capture and storage of CO2

• Strategic Energy Technology Plan (SET Plan)

• Towards a European Strategic Energy Technology Plan

Programme (2007 to 2013)

29

Page 30: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Others Policy Supports: G8 aspect:

20052005 Gleneagles Plan of Action on Climate Change and Sustainable Development

• We will work to accelerate the deployment and commercialization of Carbon Capture and Storage technology by:

• . . . inviting the International Energy Agency to work with the Carbon Sequestration Leadership Forum to hold a workshop on short term opportunities for carbon capture and storage, including from Enhanced Oil Recovery and removal of CO2 from natural gas production.including from Enhanced Oil Recovery and removal of CO2 from natural gas production.

2008/2009

• G8 leaders at Hokkaido Toyako Summit (2008) affirmed: …strong support for the launching of 20 large-scale CCS demonstration projects globally by 2010, taking into account various national circumstances, with a view to beginning broad deployment of CCS by 2020.

• In 2009, at the L'Aquila Summit, G8 leaders reaffirmed: …the commitment made in Toyako for the launch of 20 large-scale Carbon Capture and Storage demonstration projects globally by 2010

30

Page 31: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

National Policy Supports • The Member of CSLF (Carbon Sequestration Leadership Forum )

Australia Brazil

Canada China

Colombia Denmark

European

CommissionFrance

Commission

Germany Greece

India Italy

Japan Korea

Mexico Netherlands

New Zealand Norway

Poland Russia

Saudi Arabia South Africa

United Arab Emirates United Kingdom

United

States31

Page 32: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

CCS Policy in Taiwan

Many policies relating to CCS

Technology Policy:

•general direction of Low carbon environment

•White Paper of Science and Technology R&D in Taiwan (2011-2014) (中華民國科學技術白皮書100~103)

•Specific:

•NSC Energy Programme: Clean Coal Master Programme

•MOEA: Energy R&D White Paper of 2007 (2007能源科技研究發展白皮書)•MOEA: Energy R&D White Paper of 2007 (2007能源科技研究發展白皮書)

Industrial Policy:

•MOEA: White Paper on Energy Technology and Industry of 2012 (2012年能源產業技術白皮書)、White Paper on Energy Technology and

Industry of 2010 (2010年能源產業技術白皮書)

Energy Policy :

•MOEA: 2008 Sustainable Energy Policy Framework, the conclustion report of 2009 National Energy Conference ( 2009年全國能源會議)、2011

New Energy policy(穩健減核,逐步邁向非核家園) (missing?) 、2012 Energy Development Framework (2012 能源發展綱領能源發展綱領 )

Climate and Energy Policy Package:

•2010 National Emission Reduction and Energy Conservation Programme (Master Plan on Energy Conservation and Emission Reduction 2010) (2010 國家節能減碳總計畫) by Carbon Emission Reduction and Energy Saving Commission, The Executive Yuan 32

Page 33: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Policy Barriers(!) in Taiwan (1)

Policy target setting is important

•Europe: 20-20-20 target: binding emission target: RES contribute to 20%, while CCS contribute partly to 20% emission reduction

•The setting of several CCS demonstration sites in European policies ex: EU and •The setting of several CCS demonstration sites in European policies ex: EU and

UK design a “quantitative target ” for CCS

Taiwan

• No legally binding emission reduction Target ? Unclear (merely a policy option after 2020?)

• Demonstration numbers? Unclear ; Only “qualitative”: a lack of quantitative

target for CCS; 33

Page 34: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Policy Barriers(!) in Taiwan (2)

Main lessons: From R&D to real demo & commercialization

• Both are emphasized.

Taiwan Taiwan

• Focus on R&D (by EPA, MOEA, NSC); too few real demo actions

• Why put CCS in Landmark Programe 7, instead of 2 under Master Plan on Energy Conservation and Emission Reduction 2010?

CCS is merely a “tech”, instead of a viable option under Landmark Program II: Low Carbon Energy System before 2020.

34

Page 35: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Remedy to Policy barriers in Taiwan

The role of CCS should be integrated into EnergyPolicy, instead of just under Energy R&D Policy.

35

Policy, instead of just under Energy R&D Policy.

Taiwan government shall consider set quantitative target for CCS.

Page 36: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Good news in 2015?

the role of CCS under the forthcoming

“National Climate Plan” under

the new GHG Reduction andManagement Act of 2015 (July 2015)?Management Act of 2015 (July 2015)?

36

Page 37: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

V. Law : Incentives Aspect technology development V. Law : Incentives Aspect development cycle thinking

Life cycle support thinking

37

Page 38: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The LEADER of CCS Legal Regime

• IEA CCS Directive

38

Page 39: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Lessons for Legal Incentives

TTechnology echnology DDevelopment evelopment CCycle ycle thinking

R&D

small demo ( large demo

commercializat

ion)

39

Life cycleLife cycle support thinking

Page 40: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The main incentives for CCSIEA suggestion

1.Carbon Tax2.Cap and

trade

3.Project

Page 35: http://www.iea.org/publications/freepublications/publication/model_framework-1.pdf

3.Project Based

mechanism4.Feed in Tariff

5. Emission performance

standards

6. CCS Technology Mandate):

40

Page 41: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

The main incentives for CCSEU Regime

• Capture Ready Obligation (正面的獎勵措施(例如:針對300MW的電廠強制義務))

• R&D Exemption (This Directive shall not apply to geological storage of CO2, with a total intended storage below 100 kilotonnes, undertaken for research, development or testing of new products and processes.)

• Exemption of environmental law (ex. Waste Directive, Waste transportation, waste shipping)

CCS Directive

41

• Funding for demonstration projects NER 300

•12 big demonstration projects before 2015

•The networking role of ZEP FP (7, 8..)

Page 42: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Current Situation in Taiwan

• Current: funding for preliminary, feasible and small pilot test

research.

• Energy Research and Development Fund under Energy Management Act

• Petroleum Fund under Petroleum Management Act • Petroleum Fund under Petroleum Management Act

• National R&D Budget

• Weakness

• Lack of “Life Cycle Incentives” and “Technology cycle incentives”(R&D→ small demo ( large demo → commercialization)

• Lack of “investment subsidy”: Only sufficed for small pilot test, Insufficient for medium to large-scale demonstration site

• lack of “feed in tariff” or other direct support scheme: to encourage the market application of CCS

42

Page 43: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Suggestions for Taiwan

• under a non-electricity liberalization environment

Tai-Power CPC

• The main players

• Tai-Power

• CPC

• Private IPPs

• energy intensive industries: cement, steel, etc.

43

Private IPPs energy intensive

industries: cement, steel, etc.

Page 44: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Technology cycle Aspect (1) Small demo:

• Enact “CCS demo subsidy Ordinance” (similar to: Geothermal, and offshore wind) Provided to: Tai-Power,

CPC, Private IPPs, and energy intensive industries (cement, steel, etc.]

• Tendering: the above subsidy can be allocated via tendering process.

• Long term PPA for [existing or new IPPs] willing to do CCS demo

• Tax incentive

Large demo:Large demo:

• Low-interest loan and guarantee Ordinance for CCS

• Emission peformance standard

• Technology mandate for new power plants: CCS Ready

• Tax incentive

Commercialization

• RPS, or tendering, FIP, fixed FIT for [IPP, Tai-power]

• Tax incentives

• Net metering for [energy intensive industries - cement, steel, etc.]

44

Page 45: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Technology cycle Aspect (2)

R&D Small demo Large demo Commercialization

R&D budget Special investment

grant, tendering Emission performance standards, CCS ready

Feed in tariff, CDM, JI, ETS, etc

45

Page 46: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Life Cycle Aspect (1) • Exploration stage: the provision of exploration subsidy

• The enact of Exploration Subsidy Ordinance (探勘補貼標準)

• Exploitation stage: the provision of demonstration subsidy (investment subsidy) for demonstration pilot projects

• Enacting CCS Demonstration Subsidy Ordinance (示範計畫

LIFE CYCLE

INCENTIVE

THINKING!!

46

• Enacting CCS Demonstration Subsidy Ordinance (示範計畫補貼辦法)

• Lesson from Renewable: The development of “CCS project finance ” (low-interest loan and guarantee programme)

• Operational stage: the provision of “feed in tariff” or “long term Power Purchase Agreement PPA”

• Purchasing electricity from CCS power plants in a preferential price. (「第五階段」開放民間設立發電廠方開放民間設立發電廠方開放民間設立發電廠方開放民間設立發電廠方案案案案) ),將CCS與淨煤電廠納入, 以優惠收購價格保障之。

Page 47: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Good news in 2015

Climate Change Fund under the GHG

Emission tradingscheme

Fossil fuel carbontax(?)

under the GHG Reduction Act of 2015

• Similar to theconcept of EU NER300

scheme tax(?)

47

Page 48: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

VI. Law : Regulatory AspectVI. Law : Regulatory Aspect

48

Page 49: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

TWO WAY OF THINKNGS

CCS Installations

chain chain

LIFE CYCLE of Carbon Storage

49

Page 50: Establishment of a Policy and Legal Framework for Carbon ... · The Transformation of IEA’s technologies roadmap in Taiwan: one of the toughest energy situation in the industrialized

Focus on Life-cycle regulation of Carbon Storage

five similarity between EU and IEA CCS Regulatory Regime 1. Seamless “Permission” (or. notification)

2. Seamless “Plan” of Storage Operators

EHS

Disaster

Risk

3. Seamless “Distribution of Duties” between authority and Operators

4. Seamless “Distribution of Liability” between Authority and Operators

5. Seamless Distribution of “Monitoring” Duty Between Authority and Operators

50

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1. Seamless “Permission” (or. notification)

IEA modeling framework EU CCS directive

Exploration 6.3 5Exploration

permit

6.3 5

Site

selection

6.4 4

Storage permit 6.5 6~9

Injection permit 6.5(5) 9III

Closure or transfer of

responsibility permit

6.10 17 and 18 51

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2. Seamless “Plan” of Storage Operators

IEA modeling

framework

EU CCS directive

framework

• Monitoring Plan

• Emergency Response Plan

• Human Health and Environmental

Safety Plan

• Closure Plan

• Post-Closure Plan

6.5 Art. 13, 16, 17, 18.

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3. Seamless “Distribution of Duties” between authority and Operators

IEA modeling framework EU CCS directive

Authority 檢測(inspection) 6.6 第15條

監督(monitoring) 6.7 第13條監督(monitoring) 6.7 第13條

碳漏情況之措施 (corrective measures and

remediation measures)

6.8 第16條

Operator 碳漏情況之措施 (corrective measures and

remediation measures)

6.8 第16條第1、2、3項

定期報告義務(regular reporting duty) 6.7(4) 第14條

根據特定情形關閉廠址後的責任(duty during

closure period)

6.10(1)(a)(i) 第17條第2項

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4. Seamless Distribution of Liability between Authority and Operators

IEA modeling

framework

EU CCS directive

前 階 段 (project

period)

Operator 6.9 Art. 18 (第18條第1項本文反面解釋)

後 階 段 (post

closure period)

State (國家)

( financial liability:

from the operator 財務責

任:經營者)

6.11、6.12 Art 18-20 (第18條~第20條)

Operators (經營者) 6.10(1)(a)(i) Art.17(2), 18(7)第17條第2項、第18條第7項

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5. Seamless Distribution of “Monitoring” Duty Between Authority and Operators

IEA modeling framework EU CCS directive

前 階 段 (Project

Period):

operators and the

State (經營者+國家)

6.7(3) 第13條

後 階 段 (post-

closure Period) :

State (國家)

6.11(2)(b) 第18條第1項55

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6. Special Regulation in EU CCS Directive

The composition of CO2 stream

EU’s supervision power of storage permit issued by Member States

Open access to CO2 pipeline and

storage

Information disclosure

Forbidden of ocean storage

EIA and SEA

IPPC Directive Water directive Environmental

Liability Directive 56

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Regulatory Vacuum of Carbon Storage in Taiwan

the lack of lifethe lack of life--cycle regulatory thinking cycle regulatory thinking • the urgency to integrate CO2 in existing legal system

Planning law

PollutioDisast

Pollution Laws

Q: Is CO2 air pollutant under Air Pollution Act?

Q: Is CO2 (may affect water PH value) a pollutant under Water Act?

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CCS

Pollution law

Environment

al impact assessment EIA law

SEA Law?

Law on public

participation

Law on Information

disclosure

Disaster act

Q: Is CO2 (may affect water PH value) a pollutant under Water Act?

Q: Should Taiwan follow Japan and regulate CCS under Marine Pollution Act?

Q: Should Taiwan follow US and regulate CCS under Ground Water and Soil

Protection Act?

Q: should Taiwan adopt its approach and design CO2 as Toxic Chemicals

under Toxic Chemical Substances Control Act?

EIA laws:

Q: R&D exemption?

Q: EIA threshold for capture installation and CO2 pipeline?

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The Potential Way-out “Mining Act” could play the key role of regulation

Regulatory measures 一、管制措施1. Seamless “Permission” (or. notification)許可:無縫接軌: Exploration permit 探勘許可 Articles of Mining Acts礦業法條文

Site selection 選址 第12、15條第1項→storage permit 開始封存許可 第13、17、18、26、43、58條→injection permit 注入同意 第20條→closure permit (liability transfer)關閉(責任移轉)許可 第37、38條、礦場安全法第18條

2. Seamless “Plan” of Storage Operators計畫無縫接軌 Monitor plan

Corrective measures plan

H&S emergency response plan

第15條第2項、第49條、礦場安全法第10、13條Closure Plan

Post closure plan

第48條3. Seamless “Distribution of Duties” between authority and Operators二、主管機關與經營者之職責(主管機關-經營者責任妥善分工)Authority 主管機關 Inspection 檢測 第63條Authority 主管機關 Inspection 檢測 第63條

Monitor 監督 礦場安全法第34條、第57條碳漏情況之措施(corrective measures and remediation measures) 礦場安全法第37條Operator 經營者 碳漏情況之措施(corrective measures and remediation measures) 第15條第2項、第49條

Report duty定期報告義務等 第59、60條4. Seamless Distribution of Liability between Authority and Operators三、損害賠償(法律)責任liability(損害賠償責任無縫接軌)Project period 前階段 Operator 經營者 第49條Post closure period 後階段 The State 原則:國家(財務責任:經營者) ???

Operator 例外:經營者 第48條5. Seamless Distribution of “Monitoring” Duty Between Authority and Operators四、監控monitoring (針對封存場持續保持監控)Project period 前階段 Operators and the State 經營者+國家 第15條第2項、礦場安全法第27條Post closure period 後階段 The State 國家 ???五、雜項(歐盟CCS指令)

The composition of co2 stream二氧化碳流之組成 ?

Information disclosure 提供資訊給民眾 ?

EIA, risk assessment 環境影響評估、風險評估 第15條第2項、第43條第3項、開發行為應實施環境影響評估細目及範圍認定標準第11條第1項

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Problem remains……1.the the lack of lifelack of life--cycle regulatory thinking cycle regulatory thinking

• the intervene is still needed….

• Current Taiwan legal system doesn’t deal with “closure” and “post-closure period” of CCS “closure” and “post-closure period” of CCS

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Problem remains……2. Challenge for New Drilling

• Easiest Approach: EOR

• Reuse of existing oil wells and storage space in existing near-exhaustive wells-EHR, EOR purpose under Mining Act

• Red-tap of Mining Act is not required.

• Only need to watch out Pollution Acts

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• Only need to watch out Pollution Acts

• Difficult Approach: CCS activities requires new drillings.

• Mining Act Approach: The Executive Yuan should designate CO2 as one type of mine under

the Mining Act. The designation of CO2 mining zone requires the almost-impossible and political sensitive “water and soil" permission from local government before approval of Mining Zone by the Central government.

• Non-Mining Act approach: Marine Pollution Act?

Almost impossible for new drilling!!

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Problem remains……3. No EIA exemption for RD&D Projects; no

SEA(strategic environmental assessment) for the CCS

Pilot and CCS demonstration and experimental project should be exempted from EIA

• Copy the Ordinance of EIA concerning geothermal and oceanic

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• Copy the Ordinance of EIA concerning geothermal and oceanic energy.

The Use of SEA to rationalize the development of CCS beyond Project level

• The Application of SEA to Future CCS development

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Break-through10 kiloton EIA exemption for RD&D of carbon storage in August 20131. Gao investigates into the 10

kilotone Exemption from CCS Directive 2.5 year ago.

2. Idea was proposed by Gao to Mr. Ou-yang(ITRI) two years ago. Ou-yang(ITRI) two years ago.

3. …standstill………. A long time

4. The Apple Daily accusation of 10 kilo tonne issue

5. EPA accommodate for the needs of RD&D(?) or the need of CPC and Tai-power(?)

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Good news for regulations in 2014 and 2015?

• EPA Minister’s background

• Professor, Department of Geology, 2014

• EU visit tour in 2014 on CCS

• The successful works of ournational energy researchprogramme team on “inter-governmental communication”

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VII. Conclusion VII. Conclusion

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Comparing the CCS Development framework in Taiwan and IEA/EU

IEA/EU colorful Taiwan is black

and white

Tech RD Reality:

65

Tech RD&D

Authority

Policy

law

Reality: many demo

projects

Tech RD without

D?

Authority?

Policy?

law ?

Reality: none demo

projects?

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Why does Taiwan lesson matter?

• Similar legal barriers in a lot

of developing and and developed countries

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Beyond technology roadmap:A much-needed “legal roadmap” and “law” to brighten the Future of CCS Development

CCS tech

policy

Law: authority, incentive, regulation

Reality: demo

projects

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Public Perception, Acceptance, and Image of CCS

• The NIMBYism and NUMbyism remains unresolved!!!!

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Collaboration Collaboration

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Technology aspect the head of clean coal focus centre is in my university • [email protected]

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With German Professors

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With Norway professors

• Agreement of Scientific Cooperation

between the National Science

Council, Taipei and the Council, Taipei and the Research Council of Norway, Oslo

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Future possibility for EU-Asia Networkon climate, energy policy and law • GCCSI

• Clare Penrose | General Manager Asia Pacific

• Ian hovercraft

• South Korea• Prof. Koh• Prof. Koh

• China• China environmental law

association

• Japan• Japan environmental policy and law

association

• US• Hart Craig

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Academic and publication collaborationI am editing one book on CCSlegal and policy framework in Asia regionoffshore wind farm legal regime offshore wind farm legal regime in US, Europe, Asia and Australia

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Thanks for your attentionwelcome your comments

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