Abstract
The global investment in carbon capture, utilization and storage (CCUS) is increasing in an attempt to reach carbon neutrality by 2050. Korea is pushing for a project to install the country's first commercial-scale carbon capture storage facilities in a gas field in the East Sea in 2021. Successfully deploying CCUS relies on the establishment of legal and regulatory frameworks to ensure the effective stewardship of CCUS activities and the safe and secure storage of CO₂But which are yet to establish a legal foundation for CCUS, and particularly for Regulations relating to exploitation of CO₂storage site. The CCUS Act requires separate provisions for exploration and drilling. CCUS cost is the most significant hurdle in investment for exploration and drilling of CO₂storage site. Article 140 of the Restriction of Special Taxation Act shall be amended to exempt tariffs and value-added taxes on equipment for exploration and drilling of carbon dioxide storage. The management agency of public waters shall collect occupancy or use fees of pubic waters each year from a person who has obtained an occupancy or use permit or the consultation or approval for occupancy or use of public waters, as prescribed by Presidential Decree: Provided, That reductions or exemptions of occupancy or use fees may be granted, as prescribed by Presidential Decree in any of the following cases. In reference to Article 13 of the Public Waters Management and Reclamation Act, Where who occupies or uses public waters to install or operate energy facilities falling under Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy. By applying this provision, because exploration and drilling is not mining in the sea, occupancy fees imposed on holder of exploration licence for CO₂storage site should be reduced or exempted.
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