7220/14
COM (2014) 99 final
EXPLANATORY MEMORANDUM ON EUROPEAN UNION DOCUMENT
Report from the Commission to the European Parliament and the Council on the
implementation of Directive 2009/31/EC on the geological storage of carbon dioxide
Submitted by the Department of Energy and Climate Change on 19th March 2014
SUBJECT MATTER
The document is a progress report on Member States’ implementation of Directive
2009/31/EC on the geological storage of carbon dioxide (the so-called Carbon Capture and
Storage Directive – hereinafter ‘CCS Directive’). The CCS Directive was adopted on 23
April 2009 and establishes a legal framework for the safe geological storage of carbon
dioxide (CO2) to contribute to mitigating climate change. The aim behind the CCS Directive
is to ensure that there is no significant risk of leakage of CO2 or damage to health or the
environment, and to prevent any adverse effects on the security of the transport network or
storage sites. The Directive lays down requirements covering the entire lifetime of a storage
site. It also contains provisions on the capture and transport components of CCS, though
these activities are covered mainly by existing EU environmental legislation, such as the
Environmental Impact Assessment Directive and the Industrial Emissions Directive, in
conjunction with amendments introduced by the CCS Directive.
Article 39(1) of the CCS Directive required Member States to implement the Directive by 25
June 2011. Letters of formal notice for non-communication of national measures were sent
to 26 Member States in July 2011. By October 2013 all Member States had notified
transposition measures to the Commission. 19 of the 26 infringement cases, including the
UK’s were closed by November 2013. Austria, Cyprus, Hungary, Ireland, Sweden and
Slovenia have not yet notified complete transposing measures. The Commission addressed
reasoned opinions to these six Member States in November 2013. One other Member State’s
transposition is still being considered.
The report sets out some of the variations in Member States’ approach to implementation.
Whereas most Member States do allow geological storage of CO2, some have reported a
decision not to allow CO2 storage on their territory or part of it due to unsuitability of their
geology for CO2 storage (Finland, Luxembourg and the Brussels Capital Region of Belgium).
Some other Member States have also not allowed geological storage of CO2 (Austria, Estonia,
Ireland, Latvia, Slovenia, Sweden) or restricted it (Czech Republic, Germany).
Where Member States determine that exploration is required for selection of CO2 storage
sites, the Directive requires that this must not take place without an exploration permit.
While some Member States require exploration only in cases where there is too little
information to apply directly for a storage permit, others, including the UK, always require
exploration permits.
The Directive also contains provisions about the purity of the CO2 transported and stored.
While the transposing acts of most Member States, including the UK’s, include a generic
requirement that the stream must consist mostly of CO2, and that no waste can be added for
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the purpose of disposing of it, a few Member States impose specific limits for the
components of the CO2 stream.
In the majority of the Member States, storage site operators must submit a report covering
amongst other things, storage site monitoring and the composition of the CO stream at least
once a year. Many Member States, including the UK, lay down a requirement to report more
frequently, should the competent authority request these reports.
As for the minimum period between the closure of a storage site and the transfer of
responsibility, most Member States’, including the UK, require at least 20 years, unless the
competent authority is persuaded earlier that the stored CO2 will be completely and
permanently contained. A few Member States opt for longer default periods of 30 or 40
years, while others aim to judge exclusively on a case-by-case basis.
While many Member States, including the UK, mirror the requirements set out in Article 19
of the Directive for storage site operators providing financial security for post closure
monitoring and potential leakage, in their legislation, others have adopted additional
requirements and laid down guidelines on specific instruments and calculations of financial
security or additional requirements for the financial contribution to monitoring costs.
Under Article 33 of the CCS Directive Member States need to ensure that operators of
combustion plants with a rated electrical output of 300 MW or more assess the technical and
economic conditions necessary for future application of carbon capture and storage (so-called
“carbon-capture readiness”). Where the assessment is positive, suitable space has to be set
aside on the installation site for capturing and compressing CO2. In the UK additional
guidance was issued, stipulating that no new combustion plant with an electrical generating
capacity of 300 MWe or more would be consented unless it was “CCS ready”.
SCRUTINY HISTORY
EM5835/08 - Proposal for a Directive of the European parliament and of the Council on the
geological storage of carbon dioxide and amending Council Directives 85/337/EC, 96/61/EC,
Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC and Regulation (EC) no
1013/2006 was submitted by the Department of Energy and Climate Change (DECC) on 18
February 2008. The Commons European Scrutiny Committee considered it to be politically
important and cleared from scrutiny on 13 May 2008 (Report No. 15, Session 07/08). The
Lords European Union Select Committee cleared it from scrutiny on 3 April 2009 (Sift No.
1313, Session 08/09).
MINISTERIAL RESPONSIBILITY
The Secretary of State for Energy and Climate Change has the primary interest in Carbon and
Capture and Storage and is the licensing authority for CO2 storage except within the
territorial sea adjacent to Scotland.
INTEREST OF THE DEVOLVED ADMINISTRATIONS
The Department of Enterprise, Trade and Investment in Northern Ireland is the licensing
authority for CO2 storage in respect of Northern Ireland and the adjacent internal waters.
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The Welsh Ministers are the licensing authority for CO2 storage in respect of Wales and the
adjacent internal waters.
Scottish Ministers are the licensing authority for CO2 storage in respect of Scotland, the
adjacent internal waters and the territorial sea adjacent to Scotland.
Where a carbon storage activity takes place partly in an area for which one licensing
authority is responsible, either of the relevant licensing authorities can exercise its functions
in respect of that activity.
The devolved administrations have been consulted in the preparation of this EM.
LEGAL AND PROCEDURAL ISSUES
There are no legal or procedural issues. This is not a proposal for legislation.
APPLICATION TO THE EUROPEAN ECONOMIC AREA
The document is not applicable to the European Economic Area.
SUBSIDIARITY
The report respects the principles of subsidiarity and proportionality as governed by Protocol
(No 2) of the EU Treaty on the Functioning of the European Union.
POLICY IMPLICATIONS
The Government is content with the report as drafted.
The UK has fully implemented the Directive through the following regulations:
UK Statutory Instruments
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The Energy Act 2008 (Consequential Modifications) (Offshore Environmental
Protection) Order 2010 (SI 2010/1513)
The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (SI 2010/2221)
The Infrastructure Planning (Environmental Impact Assessment) (Amendment)
Regulations 2011 (SI 2011/2741)
The Storage of Carbon Dioxide (Amendment of the Energy Act 2008 etc.) Regulations
2011 (SI 2011/2453)
The Storage of Carbon Dioxide (Termination of Licences) Regulations 2011 (SI
2011/1483)
The Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011 (SI
2011/2305)
The Town and Country Planning (Environmental Impact Assessment) Regulations (SI
2011/1824)
The Environmental Permitting (England and Wales) (Amendment) Regulations 2011 (SI
2011/2043)
The Storage of Carbon Dioxide (Inspections etc.) Regulations 2012 (SI 2012/461)
The Carbon Capture Readiness (Electricity Generating Stations) Regulations 2013 (SI
2013/2696)
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Scottish Statutory Instruments
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Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations
2011 (SSI 2011/139)
Pollution Prevention and Control (Scotland) Amendment Regulations 2011 (SSI
2011/285)
The Storage of Carbon Dioxide (Licensing etc.) (Scotland) Amendment Regulations
2011 (SSI 2011/457)
Northern Ireland Statutory Rules
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The Planning (Environmental Impact Assessment) Regulations (Northern Ireland) 2012
The Pollution Prevention and Control (Amendment) Regulations (Northern Ireland) 2011
(S.R. 2011 No. 212)
Gibraltar
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Environment (Geological Storage of Carbon Dioxide) Regulations 2011 (LN 2011/174)
We welcome the opportunity to engage with the Commission’s upcoming review of the CCS
Directive. We expect to start to collect views in 2014 about changes that might need to be
made to the Directive to inform the UK’s negotiating position. The liability arrangements
have attracted considerable concern from those interested in developing CO2 storage sites and
this is one area where the Government would expect the Directive to come under close
scrutiny during its review.
IMPACT ASSESSMENT
As the document is a report on implementation of an existing Directive, an Impact
Assessment has not been prepared. Impact Assessments were prepared for the implementing
regulations.
FINANCIAL IMPLICATIONS
As this is a report on implementation of a directive no financial implications arise.
CONSULTATION
There are no issues within the report requiring consultation.
TIMETABLE
The information obtained for this report, will provide an input for the preparation of the next
Commission report, which will review the CCS Directive. That report is to be transmitted to
the European Parliament and the Council by 31 March 2015.
Michael Fallon MP
Minister of State for Energy
Department of Energy and Climate Change
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