International CCS developments and the Clean Energy Ministerial James Godber Department of Energy and Climate, UK

CCS in the Clean Energy Ministerial What is the Clean Energy Ministerial? “A global forum accelerating the transition to clean energy technologies.” Where does CCS fit in? Carbon Capture Use and Storage (CCUS) Action Group launched 2010. Brought together governments, businesses and organisations to advance the deployment of CCS. 2

CCS in the Clean Energy Ministerial What was the outcome of the ministerial in April? Recommendations: Financial gap Legal and Regulatory CCS in Industry CO2 Storage Marine Treaties Developing Countries Knowledge Sharing The endorsed CCUS Action Group recommendations call on Energy Ministers to: Advance policies that address the financial gap and risks associated with early-mover carbon capture and storage (CCS) projects; Identify and advance appropriate funding mechanisms to support the demonstration of large-scale CCS projects in developing economies; Advance the development of legal and regulatory frameworks for CCS; Promote the importance to global CCS deployment of ratifying key international marine treaty amendments; Support and encourage the development of best practice knowledge-sharing from early mover projects, in particular those with public funding; Review key gaps in storage data coverage and knowledge including capacity assessment; and Recognise the potential of CCS for industrial emission sources and review demonstration opportunities. Most countries endorsed all recommendations apart from China, which is keen to remain engaged in the process. How will this be taken forwards? Steering committee of countries endorsing recommendations formed to drive progress IEA/CSLF/GCCSI to draw up workplan Global CCS Institute to take on secretariat function and deliver progress report Possible meeting around CSLF ministerial UK to host next Clean Energy Ministerial in 2012 3

CCS in the Clean Energy Ministerial What was the outcome of the ministerial in April? Recommendation for Funding Support in Developing Countries “By CEM3; Identify and advance appropriate funding mechanisms to support the demonstration of large-scale projects in developing countries” All countries apart from China endorsed the recommendation calling for support for CCS in developing countries. The Global CCS Institute is now leading a group to deliver on this recommendation. While this is still in the early stages the aim will be to build on the work previously carried about by the ADB and WRI and work with developing countries to help them develop a more focused “ask” on CCS. What resources are already out there? What do they need financial assistance for? And how can they present this to the international community? 4

The UK Government’s Commitment to CCS No new coal fired power stations without CCS Committed up to £1billion for the first CCS demonstrator Committed to funding three further CCS demonstration projects Wider regulatory reforms introduced to underpin deployment of CCS: Electricity Market Reforms, Carbon Price Floor, Emissions Performance Standard, Infrastructure Consultation Contracts for first demo project to be signed soon for operation to start 2014/15 No new coal fired power station without CCS The UK Government has committed to four CCS demonstration projects as outlined within the Coalition Document The Front End Engineering Design (FEED) studies, funded with public sector money for the 1st CCS demonstrator will be completed in Spring 2011 – E.ON and Scottish Power Consortium. The Comprehensive Spending Review committed up to £1bln in public expenditure for 1st CCS demonstrator In November, our Energy Minister opened up the selection process for demonstrations 2-4 to potential gas projects; Plans to initiate a CCS Levy have been dropped. This means projects 2-4 will be funded through general taxation as with the first project.