1. DRAFT Proposal for a European Directive on the Geological Storage of Carbon Dioxide Subject to modification on adoption by the Commission

2. Carbon Capture and Storage (CCS) The use of fossils fuels in power generation accounts for 40% of all EU CO2 emissions Without CCS we cannot reduce world CO2 emissions by 50% by 2050 The EU would like to see up to 12 large-scale CCS demonstration plants by 2015 and full commercial deployment starting in 2020 However, this will require – among other things – a clear regulatory framework for CCS

3. Regulation of CCS There are three aspects of CCS that need regulating: –Capture of CO2 –Transport of CO2 –« storage » of CO2 The capture and the transport of CO2 can be adequately regulated under existing EU environmental regulations with only slight modifications to them. The necessary modifications are to be proposed. CO2 transport will also be brought under the Environmental Impact Assessment Directive

4. Regulation of CO2 Storage Geological storage of CO2 will require an EIA. Investigation of sites for geoligical storage will require exploration permits being granted by the competent authority Geological storage of CO2 will require the granting of storage permits by the competent authority

5. Exploration permits Granted for limited volume area Granted for maximum 2 years –Renewable for a maximum of 2 years

6. Geological Storage Permits Conditions for and content of the storage permit –Include total quantity of CO2 authorised for storage –Identify prospective sources –Include composition of the gas stream…etc –Include approved monitoring plan –Include corrective measures –Include conditions for closure Review of draft permits –By the European Commission who will issues an opinion Review of permits by competent authorities every 5 years

7. Detailed requirements There will be detailed requirements concerning: Selection of storage sites CO2 acceptance criteria and procedure –Including from other sources –« Overwhelmingly » of CO2 Monitoring and reporting obligations Inspections Measure in case of irregularities/leakages Closure and post-closure procedures Transfer of responsibility to Member State Financial security Access to transport networks

8. General Provisions Competent authority –To be established or designated by Member States Transboundary co-operation for transport Penalties for breaches Reporting by Member States –Every three years Directive to be transposed (1 year) after adoption

9. ANNEXES Annex I – Criteria for the characterisation and assessment of storage sites –Four steps Initial characterisation – dynamic earth model Static characterisation - computerised simulation Security, sensitivity and hazard characterisation Risk assessment Annex II – Criteria for establishing and updating the monitoring plan and for post- closure monitoring

10. Schedule Should be adopted by the Commission today (23 January 2008) Then it will be discussed and debated and decided by the European Council and the European Parliament Then transposed into national legislation by Member States…… It would normally be expected to be in force throughout the EU within 3 years.