1. CCS Policy Development Approach & Preliminary Results Shuvendu Bose May 24, 2011

2. Agenda Clarify what to do in Phase 1? –Make sure everyone is on the same page! Illustrate how to complete Phase 1? –Approaches (Methodology) –Preliminary findings on “Relevant Issues of Concern for Policy Making” (i.e. the Drivers) Propose meeting schedule

3. What to do in Phase 1? Review on Existing Policy in Other Economies Review on Existing Legislation & Development Generic DriversLocal Gaps CCS Policy Economic Analysis Alternative 1 Alternative 2 Work Packages Economic & Finance Theory Review on Existing Policy in Other Economies Review on Existing Legislation & Development Generic DriversLocal Gaps CCS Policy Economic Analysis Work Packages Economic & Finance Theory MC inputs suggested

4. Progress Update Developed a Framework to Map the Policy Drivers.* Identified Major Drivers. * CCS Policy literature do not cover issues that are deemed properly regulated by existing legislation.

5. Framework Main drivers –Asset –Finance –Technology Source Capture Transport Usage & Storage Licensing Development Operation Closure Licensing Development Operation Closure Licensing Development Operation Closure Main interactions –Renewable Energy –Int’l Carbon Offsetting –Int’l Law –Electricity & Water Markets Post- Closure Time

6. Asset CO 2 Facility Access Ownership Monitoring & Reporting EHS Liability Usage (e.g. EOR) Specification Offtaker Int’l Law

7. Finance Cost Revenue CO 2 Value Scale Int’l Carbon Offsetting Domestic Supply & Demand on CO 2 Risk Sharing Uncertainty & Volatility Electricity Water Public Engagement Oil Gas

8. Technology Next generation Commercially Feasible Diffusion Pilot Program Development Domestic R&D Int’l Collaboration Tech Transfer Existing Tech

9. Next Steps Step 1: Identify Driver Associations –Couple the three dimensions of drivers –Develop a Matrix to illustrate the associations Step 2: Identify Working Packages –Criteria of Parceling: Interdependency Substitution of association Time Step 3: Develop Terms of Reference

10. Matrix LicensingDevelopmentOperationClosurePost- Closure SourceDrivers CaptureDrivers TransportDrivers StorageDrivers