Enlisting Carbondioxide Capture and Storage as a Clean Development Mechanism Project: Legal and Regulatory Issues Considered

Abstract

The Clean Development Mechanism of the Kyoto Protocol provides an incentive for governments and companies in industrialized countries to invest in green house gases (GHG) reductions projects in developing countries and be credited for GHG reduction achieved through these projects, through the issuance of Certified Emission Reductions (CERs). Carbon dioxide Capture and Storage technology has been identified as one of such viable projects that can be carried out by industrialized nations for CERs as it offers high GHG mitigation potential. Of concern, however, is the lack of a clear, defined legal and regulatory framework which addresses some of the technical concerns associated with the CCS technology like leakage, permanence, boundary issues, and allocation of liabilities among others. This paper shows that there is an urgent need for a legal framework which addresses these technical concerns, if CCS is to be enlisted as a CDM compatible project.