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Australian Federal Parliament Committee proposes subsidies for CO2 dumps; then, dump investors to get profits and tax-payer, to pay for leaks, 950-year management

Posted by gmarkets on 10 September, 2007

It had been advised that the technological unknowns in cost estimates made industry investment in CCS on a wide-scale unlikely in the current environment, said the Federal House of Representative’s Standing Committee on Science and Innovation in its report titled Between a rock and a hard place: The science of geosequestration. Financial incentives, clear regulatory regime both required: “Industry has called for economic incentives, including a carbon price signal, to foster the development of CCS technology,” the report said. “The Committee recommends that the Australian Government employ financial incentives, both direct and tax based, in an effort to encourage science and industry to continue developing and testing CCS technology. The Committee also maintains that the Australian and state governments must develop appropriate legal and regulatory frameworks covering the injection of CO2 and subsequent operational monitoring, site closure and post-abandonment monitoring. This will provide confidence for investors to undertake large-scale CCS development.”

Long-term liability addressed: “The issue of long-term liability is of particular concern,” said the report. “Regulations need to be flexible and robust enough to apply to the sequestration and storage of CO2 which is intended to be in place for hundreds, if not thousands, of years. Regulations for financial liability need to be designed to cover both the period during which the CO2 is being sequestered and the period after the injection process has ceased. Therefore, the Committee recommends that the Australian Government, following industry consultation, develop legislation to define the financial liability and ongoing monitoring responsibilities at geosequestration sites.”

Reference: Between a rock and a hard place: The science of geosequestration. House of Representatives, Standing Committee on Science and Innovation, August 2007, Canberra. For Media comment: contact the Committee Chair, Mr Petro Georgiou MP. Phone (02) 6277 4419 or the Deputy Chair, Mr Harry Quick MP. Phone: (02) 6277 4304. For information: contact the Committee Secretary. Phone: (02) 6277 4150. Issued by: Liaison and Projects Office, House of Representatives. Phone: (02) 6277 2392. Copies of the report can be obtained from the website:
http://www.aph.gov.au/house/committee/scin/geosequestration/index.htm

Erisk Net, 13/8/2007

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