Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (EU CO2 Storage Directive)

Jurisdiction(s)
Instrument Date
Effective Date
Instrument Type
Primary
Relevant Regulatory Authority
Member states are to establish or designate the competent authority or authorities responsible for fulfilling the duties established under the directive (article 23)
Purpose and Context
To establish a legal framework for the environmentally safe geological storage of CO2 to contribute to the fight against climate change, where the purpose of environmentally safe geological storage of CO2 is permanent containment of CO2 in such a way as to prevent and, where this is not possible, eliminate as far as possible negative effects and any risk to the environment and human health (article 1)
Instrument Access Date
15 May 2012
I. Regulatory scope and definitions
Definitions

Article/Section No.

Article 3

Instrument Text

Article 3

Definitions

For the purposes of this Directive the following definitions shall apply:

1. ‘geological storage of CO2’ means injection accompanied by storage of CO2 streams in underground geological formations;

2. ‘water column’ means the vertically continuous mass of water from the surface to the bottom sediments of a water body;

3. ‘storage site’ means a defined volume area within a geological formation used for the geological storage of CO2 and associated surface and injection facilities;

4. ‘geological formation’ means a lithostratigraphical subdivision within which distinct rock layers can be found and mapped;

5. ‘leakage’ means any release of CO2 from the storage complex;

6. ‘storage complex’ means the storage site and surrounding geological domain which can have an effect on overall storage integrity and security; that is, secondary containment formations;

7. ‘hydraulic unit’ means a hydraulically connected pore space where pressure communication can be measured by technical means and which is bordered by flow barriers, such as faults, salt domes, lithological boundaries, or by the wedging out or outcropping of the formation;

8. ‘exploration’ means the assessment of potential storage complexes for the purposes of geologically storing CO2 by means of activities intruding into the subsurface such as drilling to obtain geological information about strata in the potential storage complex and, as appropriate, carrying out injection tests in order to characterise the storage site;

9. ‘exploration permit’ means a written and reasoned decision authorising exploration, and specifying the conditions under which it may take place, issued by the competent authority pursuant to the requirements of this Directive;
10. ‘operator’ means any natural or legal, private or public person who operates or controls the storage site or to whom decisive economic power over the technical functioning of the storage site has been delegated according to national legislation;

11. ‘storage permit’ means a written and reasoned decision or decisions authorising the geological storage of CO2 in a storage site by the operator, and specifying the conditions under which it may take place, issued by the competent authority pursuant to the requirements of this Directive;

12. ‘substantial change’ means any change not provided for in the storage permit, which may have significant effects on the environment or human health;

13. ‘CO2 stream’ means a flow of substances that results from CO2 capture processes;

14. ‘waste’ means the substances defined as waste in Article 1(1)(a) of Directive 2006/12/EC;

15. ‘CO2 plume’ means the dispersing volume of CO2 in the geological formation;

16. ‘migration’ means the movement of CO2 within the storage complex;

17. ‘significant irregularity’ means any irregularity in the injection or storage operations or in the condition of the storage complex itself, which implies the risk of a leakage or risk to the environment or human health;

18. ‘significant risk’ means a combination of a probability of occurrence of damage and a magnitude of damage that cannot be disregarded without calling into question the purpose of this Directive for the storage site concerned;

19. ‘corrective measures’ means any measures taken to correct significant irregularities or to close leakages in order to prevent or stop the release of CO2 from the storage complex;

20. ‘closure’ of a storage site means the definitive cessation of CO2 injection into that storage site;

21. ‘post-closure’ means the period after the closure of a storage site, including the period after the transfer of responsibility to the competent authority;

22. ‘transport network’ means the network of pipelines, including associated booster stations, for the transport of CO2 to the storage site.

Classification of CO2

Summary

Articles 35 and 36 of the EU CO2 Storage Directive amend EU waste regulations to exclude CO2 captured and transported for the purposes of geological storage from the scope of application of those instruments.

This means that CO2 captured and transported for the purposes of geological storage does not constitute “waste” for the purposes of EU waste regulations.

Article/Section No.

Article 35
Article 36

Instrument Text

Article 35

Amendment of Directive 2006/12/EC

Article 2(1)(a) of Directive 2006/12/EC shall be replaced by the following:

‘(a) gaseous effluents emitted into the atmosphere and carbon dioxide captured and transported for the purposes of geological storage and geologically stored in accordance with Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*) or excluded from the scope of that Directive pursuant to its Article 2(2);

(*) OJ L 140, 5.6.2009, p. 114.’

Article 36

Amendment of Regulation (EC) No 1013/2006

In Article 1(3) of Regulation (EC) No 1013/2006, the following point shall be added:

‘(h)shipments of CO2 for the purposes of geological storage in accordance with Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*);

(*) OJ L 140, 5.6.2009, p. 114.’

Composition of CO2 stream

Summary

Under article 12 of the EU CO2 Storage Directive, a CO2 stream must consist “overwhelmingly” of CO2. No waste or other matter may be added for the purpose of disposal. CO2 streams may, however, contain incidental associated substances from source, capture or injection processes, and trace substances added to assist in monitoring and verification of CO2 migration, provided that concentrations of such substances are below levels that would:

  1. adversely affect storage site or transport infrastructure integrity;
  2. pose a significant risk to the environment or human health; or
  3. breach applicable community laws.

Member states must ensure that operators accept and inject CO2 streams only if an analysis of the composition of the stream (including corrosive substances) and a risk assessment have been carried out.

Article/Section No.

Article 12

Instrument Text

Article 12

CO2 stream acceptance criteria and procedure

1. A CO2 stream shall consist overwhelmingly of carbon dioxide. To this end, no waste or other matter may be added for the purpose of disposing of that waste or other matter. However, a CO2 stream may contain incidental associated substances from the source, capture or injection process and trace substances added to assist in monitoring and verifying CO2 migration. Concentrations of all incidental and added substances shall be below levels that would:

(a) adversely affect the integrity of the storage site or the relevant transport infrastructure;

(b) pose a significant risk to the environment or human health; or

(c) breach the requirements of applicable Community legislation.

2. The Commission shall, if appropriate, adopt guidelines to help identify the conditions applicable on a case by case basis for respecting the criteria laid down in paragraph 1.3.

3. Member States shall ensure that the operator:

(a) accepts and injects CO2 streams only if an analysis of the composition, including corrosive substances, of the streams and a risk assessment have been carried out, and if the risk assessment has shown that the contamination levels are in line with the conditions referred to in paragraph 1;

(b) keeps a register of the quantities and properties of the CO2 streams delivered and injected, including the composition of those streams.

Geographical coverage, exclusions and prohibitions

Summary

Under article 2, the EU CO2 Storage Directive applies to the geological storage of CO2 in EU member state territories, exclusive economic zones and continental shelves. It does not directly regulate CO2 capture or transport activities.

The directive does not apply to projects undertaken for research, development or testing of new products and processes with a total intended storage below 100 kilotonnes.

Article 2 prohibits CO2 storage in: 

  1. storage sites with a storage complex extending outside the areas referenced in the first paragraph above; and
  2. the water column.

Article/Section No.

Article 2

Instrument Text

Article 2

Scope and prohibition

1. This Directive shall apply to the geological storage of CO2 in the territory of the Member States, their exclusive economic zones and on their continental shelves within the meaning of the United Nations Convention on the Law of the Sea (Unclos).

2. This Directive shall not apply to geological storage of CO2, with a total intended storage below 100 kilotonnes, undertaken for research, development or testing of new products and processes.

3. The storage of CO2 in a storage site with a storage complex extending beyond the area referred to in paragraph 1 shall not be permitted.

4. The storage of CO2 in the water column shall not be permitted.

Enhanced oil recovery (EOR)

Summary

Paragraph 20 of the preamble states that enhanced oil recovery (EOR) is not in itself included in the scope of the EU CO2 Storage Directive, but that where EOR and CO2 storage are combined, the provisions of the directive for the environmentally safe storage of CO2 should apply.  

In the situation where EOR and CO2 storage are combined, the directive’s leakage provisions are not intended to apply to CO2 released from surface installations that:

  1. does not exceed what is necessary as part of normal hydrocarbon extraction processes;
  2. does not compromise the security of stored CO2; or
  3. adversely affect the surrounding environment.

Vented and fugitive emissions from EOR operations are covered by the EU ETS Directive, which requires surrender of allowances for leaked emissions.

Article/Section No.

Preamble paragraph 20

Instrument Text

Preamble paragraph 20

(20) Enhanced Hydrocarbon Recovery (EHR) refers to the recovery of hydrocarbons in addition to those extracted by water injection or other means. EHR is not in itself included in the scope of this Directive. However, where EHR is combined with geological storage of CO2, the provisions of this Directive for the environmentally safe storage of CO2 should apply. In that case, the provisions of this Directive concerning leakage are not intended to apply to quantities of CO2 released from surface installations which do not exceed what is necessary in the normal process of extraction of hydrocarbons, and which do not compromise the security of the geological storage or adversely affect the surrounding environment. Such releases are covered by the inclusion of storage sites in Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within  the Community (1), which requires surrender of emissions trading allowances for any leaked emissions.

(1) OJ L 275, 25.10.2003, p. 32.

II. The scope and management of rights
Competition with other Interests

Summary

Paragraph 19 of the preamble to the EU CO2 Storage Directive affirms that member states retain the right to give priority to any other use of the underground, and should give due consideration to other energy-related options, including options strategic for energy security or development of renewables.

This is subject to an obligation on member states to ensure that no conflicting uses of a storage complex are permitted while:

  1. a valid exploration permit exists for the complex (article 5); or
  2. a storage permit exists for the complex (article 6); or
  3. the complex is the subject of an ongoing storage permit application (article 6).

Under article 25, competent national authorities must maintain a register of storage permits granted and all closed storage sites and surrounding storage complexes; these must be taken into consideration when permitting any activity that could affect or be affected by the sites. 

Under Annex 1, proximity to valuable natural resources, and activities around the storage complex and possible interactions with these activities, are relevant criteria for the characterisation and assessment of the potential storage complex.

Article/Section No.

Preamble paragraph 19
Article 5.4
Article 6.1 and 6.3.
Article 25
Annex I

Instrument Text

Preamble paragraph 19

(19) Member States should retain the right to determine the areas within their territory from which storage sites may be selected. This includes the right of Member States […] to give priority to any other use of the underground, such as exploration, production and storage of hydrocarbons or geothermal use of aquifers. In this context, Member States should in particular give due consideration to other energy-related options for the use of a potential storage site, including options which are strategic for the security of the Member State’s energy supply or for the development of renewable sources of energy.

Article 5

Exploration Permits

[…]

4. The holder of an exploration permit shall have the sole right to explore the potential CO2 storage complex. Member States shall ensure that no conflicting uses of the complex are permitted during the period of validity of the permit.

Article 6

Storage permits

1. Member States shall ensure that no storage site is operated without a storage permit, that there shall be only one operator for each storage site, and that no conflicting uses are permitted on the site.

[…]

3[…] Member States shall ensure that no conflicting uses of the complex are allowed during the permit procedure. 

Article 25

Registers

1. The competent authority shall establish and maintain:

(a) a register of the storage permits granted; and

(b) a permanent register of all closed storage sites and surrounding storage complexes, including maps and sections of their spatial extent and available information relevant for assessing that the stored CO2 will be completely and permanently contained.

2. The registers referred to in paragraph 1 shall be taken into consideration by the competent national authorities in relevant planning procedures and when permitting any activity that could affect or be affected by the geological storage of CO2 in the registered storage sites.

Annex I

Criteria For the Characterisation and Assessment of the Potential Storage Complex and Surrounding Area Referred to in Article 4(3)

The characterisation and assessment of the potential storage complex and surrounding area […] shall be carried out […] according to best practices at the time of the assessment and to the following criteria.

Step 1:  Data collection

The following characteristics of the complex vicinity shall be documented:

(j) proximity to valuable natural resources (including in particular Natura 2000 areas pursuant to Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds and Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora, potable groundwater and hydrocarbons);

(k) activities around the storage complex and possible interactions with these activities (for example, exploration, production and storage of hydrocarbons, geothermal use of aquifers and use of underground water reserves).

Preferential rights between CCS operators

Summary

Under articles 5 and 6 of the EU CO2 Storage Directive, member states are required to ensure that procedures for granting exploration or storage permits are open to all entities possessing the necessary capacities and that permits are granted on the basis of objective, published and non-discriminatory criteria.

Under article 5, an exploration permit holder is to have the sole right to explore the potential CO2 storage complex. The duration of a permit is not to exceed the period necessary to carry out the relevant exploration activities, but this period may be extended where the stipulated duration is insufficient to complete the exploration concerned and where the exploration has been performed in accordance with the permit.

Article 6.1 provides that there shall be only one operator for each storage site. Under article 6.3, priority for the granting of a storage permit for a particular site shall be given to the holder of the exploration permit for that site, subject to the following conditions:

  1. exploration of the site must be completed;
  2. any conditions of the exploration permit must have been complied with; and

the application for a storage permit must have been made while the relevant exploration permit remains valid.

Article/Section No.

Article 5
Article 6.2 and 6.3

Instrument Text

Article 5

Exploration Permits

[…]

2. Member States shall ensure that the procedures for the granting of exploration permits are open to all entities possessing the necessary capacities and that the permits are granted or refused on the basis of objective, published and non-discriminatory criteria.[…].

4. The holder of an exploration permit shall have the sole right to explore the potential CO2 storage complex.[…]

Article 6

Storage Permits

1. Member States shall ensure that no storage site is operated without a storage permit, that there shall be only one operator for each storage site, and that no conflicting uses are permitted on the site.

2. Member States shall ensure that the procedures for the granting of storage permits are open to all entities possessing the necessary capacities and that the permits are granted on the basis of objective, published and transparent criteria.

3. Without prejudice to the requirements of this Directive, priority for the granting of a storage permit for a particular site shall be given to the holder of the exploration permit for that site, provided that the exploration of that site is completed, that any condition set in the exploration permit has been complied with, and that the application for a storage permit is made during the period of validity of the exploration permit […] 

Third party access to storage sites

Summary

Article 21 of the EU CO2 Storage Directive requires member states to ensure that potential third party users can obtain access to CO2 storage sites in a transparent and non-discriminatory manner, applying the objectives of fair and open access, taking into account:

  1. storage capacity that is or can reasonably be made available;
  2. the proportion of the member state’s emission reduction obligations intended to be met using CCS;
  3. the need to refuse access where there is an incompatibility of technical specifications that cannot be reasonably overcome; and
  4. the duly substantiated reasonable needs of existing owners or operators and the interests of all other users who may be affected.

Under article 21.3, operators may refuse access on the grounds of lack of capacity, giving duly substantiated reasons. In the event of such refusal, member states must ensure that the operator makes any necessary enhancements to accommodate the third party, provided such enhancements:

  1. are economic, or potential customers are willing to pay for them; and
  2. will not negatively impact environmental security.

Article/Section No.

Article 21

Instrument Text

Article 21

Access to transport network and storage sites

1.Member States shall take the necessary measures to ensure that potential users are able to obtain access to transport networks and to storage sites for the purposes of geological storage of the produced and captured CO2, in accordance with paragraphs 2, 3 and 4.

2. The access referred to in paragraph 1 shall be provided in a transparent and non-discriminatory manner determined by the Member State. The Member State shall apply the objectives of fair and open access, taking into account:

(a) the storage capacity which is or can reasonably be made available within the areas determined under Article 4, and the transport capacity which is or can reasonably be made available;

(b) the proportion of its CO2 reduction obligations pursuant to international legal instruments and to Community legislation that it intends to meet through capture and geological storage of CO2;

(c) the need to refuse access where there is an incompatibility of technical specifications which cannot be reasonably overcome;

(d) the need to respect the duly substantiated reasonable needs of the owner or operator of the storage site or of the trans­ port network and the interests of all other users of the storage or the network or relevant processing or handling facilities who may be affected.

3. Transport network operators and operators of storage sites may refuse access on the grounds of lack of capacity. Duly substantiated reasons shall be given for any refusal.

4. Member States shall take the measures necessary to ensure that the operator refusing access on the grounds of lack of capacity or a lack of connection makes any necessary enhancements as far as it is economic to do so or when a potential customer is willing to pay for them, provided this would not negatively impact on the environmental security of transport and geological storage of CO2.

Public participation

Summary

<p>Under article 26 of the EU CO<sub>2</sub> Storage Directive, member states are required to make environmental information regarding CO<sub>2</sub> storage available to the public in accordance with applicable laws.</p>

Article/Section No.

Article 26

Instrument Text

Article 26

Information to the public

Member States shall make available to the public environmental information relating to the geological storage of CO2 in accordance with the applicable Community legislation.

III. Permitting storage site exploration, project development and CO2 injection
Permitting exploration activities

Summary

Under article 5 of the EU CO2 Storage Directive, member states must ensure that no exploration takes place without an exploration permit.

Exploration permits must:

  1. be granted on the basis of objective, published and non-discriminatory criteria, through procedures open to all entities possessing the necessary capacities;
  2. be granted in respect of a limited volume area;
  3. endure only as long as is necessary to undertake the relevant exploration activities (although permits may be extended where the specified duration is insufficient to complete the exploration and where exploration has been performed in accordance with the permit); and
  4. give the permit holder the sole right to explore the relevant storage complex.

Member states must ensure no conflicting uses of the storage complex are permitted during the permit’s validity.

 

Article/Section No.

Article 5

Instrument Text

Article 5

Exploration permits

1. Where Member States determine that exploration is required to generate the information necessary for selection of storage sites pursuant to Article 4, they shall ensure that no such exploration takes place without an exploration permit.

Where appropriate, monitoring of injection tests may be included in the exploration permit.

2. Member States shall ensure that the procedures for the granting of exploration permits are open to all entities possessing the necessary capacities and that the permits are granted or refused on the basis of objective, published and non-discriminatory criteria.

3. The duration of a permit shall not exceed the period necessary to carry out the exploration for which it is granted. However, the Member States may extend the validity of the permit where the stipulated duration is insufficient to complete the exploration concerned and where the exploration has been performed in accordance with the permit. Exploration permits shall be granted in respect of a limited volume area.

4. The holder of an exploration permit shall have the sole right to explore the potential CO2 storage complex. Member States shall ensure that no conflicting uses of the complex are permitted during the period of validity of the permit.

Controls on site selection

Summary

Under article 4 of the EU CO2 Storage Directive, the suitability of a formation for use as a storage site must be determined through characterisation and assessment in accordance with criteria specified in Annex I. These include the following three steps, that are to be carried out according to best practices at the time of assessment and to certain specified criteria:

  1. data collection;
  2. building the three-dimensional static geological earth model;
  3. characterisation of the storage dynamic behavior, sensitivity characterisation and risk assessment.

Under article 4.4, a formation can only be selected as a storage site if there are no significant environmental, health or leakage risks under the proposed conditions of use.

Article 4.1 confirms that member states retain the right to determine areas from which sites may be selected, including the right not to allow for storage in part or the whole of their territory.

 

Article/Section No.

Article 4
Annex 1

Instrument Text

Article 4

Selection of storage sites

1. Member States shall retain the right to determine the areas from which storage sites may be selected pursuant to the requirements of this Directive. This includes the right of Member States not to allow for any storage in parts or in the whole of their territory.

2. Member States which intend to allow geological storage of CO2 in their territory shall undertake an assessment of the storage capacity available in parts or in the whole of their territory, including by allowing exploration pursuant to Article 5. The Commission may organise an exchange of information and best practices between those Member States, in the context of the exchange of information provided for in Article 27.

3. The suitability of a geological formation for use as a storage site shall be determined through a characterisation and assessment of the potential storage complex and surrounding area pursuant to the criteria specified in Annex I.

4. A geological formation shall only be selected as a storage site, if under the proposed conditions of use there is no significant risk of leakage, and if no significant environmental or health risks exist.

Annex 1

CRITERIA FOR THE CHARACTERISATION AND ASSESSMENT OF THE POTENTIAL STORAGE COMPLEX AND SURROUNDING AREA REFERRED TO IN ARTICLE 4(3)

The characterisation and assessment of the potential storage complex and surrounding area referred to in Article 4(3) shall be carried out in three steps according to best practices at the time of the assessment and to the following criteria. Derogations from one or more of these criteria may be permitted by the competent authority provided the operator has demonstrated that the capacity of the characterisation and assessment to enable the determinations pursuant to Article 4 is not affected.

Step 1: Data collection

Sufficient data shall be accumulated to construct a volumetric and three-dimensional static (3-D)-earth model for the storage site and storage complex, including the caprock, and the surrounding area, including the hydraulically connected areas. This data shall cover at least the following intrinsic characteristics of the storage complex:

(a) geology and geophysics;

(b) hydrogeology (in particular existence of ground water intended for consumption);

(c) reservoir engineering (including volumetric calculations of pore volume for CO2 injection and ultimate storage capacity);

(d) geochemistry (dissolution rates, mineralisation rates);

(e) geomechanics (permeability, fracture pressure);

(f) seismicity;

(g) presence and condition of natural and man-made pathways, including wells and boreholes which could provide leakage pathways.

The following characteristics of the complex vicinity shall be documented:

(h) domains surrounding the storage complex that may be affected by the storage of CO2 in the storage site;

(i) population distribution in the region overlying the storage site;

(j) proximity to valuable natural resources (including in particular Natura 2000 areas pursuant to Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds and Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora;

(k) activities around the storage complex and possible interactions with these activities (for example, exploration, production and storage of hydrocarbons, geothermal use of aquifers and use of underground water reserves);

(l) proximity to the potential CO2 source(s) (including estimates of the total potential mass of CO2 economically available for storage) and adequate transport networks.

Step 2: Building the three-dimensional static geological earth model

Using the data collected in Step 1, a three-dimensional static geological earth model, or a set of such models, of the candidate storage complex, including the caprock and the hydraulically connected areas and fluids shall be built using computer reservoir simulators. The static geological earth model(s) shall characterise the complex in terms of:

(a) geological structure of the physical trap;

(b) geomechanical, geochemical and flow properties of the reservoir overburden (caprock, seals, porous and permeable horizons) and surrounding formations;

(c) fracture system characterisation and presence of any human-made pathways;

(d) areal and vertical extent of the storage complex;

(e) pore space volume (including porosity distribution);

(f) baseline fluid distribution;

(g) any other relevant characteristics.

The uncertainty associated with each of the parameters used to build the model shall be assessed by developing a range of scenarios for each parameter and calculating the appropriate confidence limits. Any uncertainty associated with the model itself shall also be assessed.

Step 3: Characterisation of the storage dynamic behaviour, sensitivity characterisation, risk assessment

The characterisations and assessment shall be based on dynamic modelling, comprising a variety of time-step simulations of CO2 injection into the storage site using the three-dimensional static geological earth model(s) in the computerised storage complex simulator constructed under Step 2.

Step 3.1: Characterisation of the storage dynamic behaviour

At least the following factors shall be considered:

(a) possible injection rates and CO2 stream properties;

(b) the efficacy of coupled process modelling (that is, the way various single effects in the simulator(s) interact);

(c) reactive processes (that is, the way reactions of the injected CO2 with in situ minerals feedback in the model);

(d) the reservoir simulator used (multiple simulations may be required in order to validate certain findings);

(e) short and long-term simulations (to establish CO2 fate and behaviour over decades and millennia, including the rate of dissolution of CO2 in water).

The dynamic modelling shall provide insight into:

(f) pressure and temperature of the storage formation as a function of injection rate and accumulative injection amount over time;

(g) areal and vertical extent of CO2 vs time;

(h) the nature of CO2 flow in the reservoir, including phase behaviour;

(i) CO2 trapping mechanisms and rates (including spill points and lateral and vertical seals);

(j) secondary containment systems in the overall storage complex;

(k) storage capacity and pressure gradients in the storage site;

(l) the risk of fracturing the storage formation(s) and caprock;

(m) the risk of CO2 entry into the caprock;

(n) the risk of leakage from the storage site (for example, through abandoned or inadequately sealed wells);

(o) the rate of migration (in open-ended reservoirs);

(p) fracture sealing rates;

(q) changes in formation(s) fluid chemistry and subsequent reactions (for example, pH change, mineral formation) and inclusion of reactive modelling to assess affects;

(r) displacement of formation fluids;

(s) increased seismicity and elevation at surface level.

Step 3.2: Sensitivity characterisation

Multiple simulations shall be undertaken to identify the sensitivity of the assessment to assumptions made about particular parameters. The simulations shall be based on altering parameters in the static geological earth model(s), and changing rate functions and assumptions in the dynamic modelling exercise. Any significant sensitivity shall be taken into account in the risk assessment.

Step 3.3: Risk assessment

The risk assessment shall comprise, inter alia, the following:

3.3.1. Hazard characterisation

Hazard characterisation shall be undertaken by characterising the potential for leakage from the storage complex, as established through dynamic modelling and security characterisation described above. This shall include consideration of, inter alia:

(a) potential leakage pathways;

(b) potential magnitude of leakage events for identified leakage pathways (flux rates);

(c) critical parameters affecting potential leakage (for example maximum reservoir pressure, maximum injection rate, temperature, sensitivity to various assumptions in the static geological Earth model(s));

(d) secondary effects of storage of CO2, including displaced formation fluids and new substances created by the storing of CO2;

(e) any other factors which could pose a hazard to human health or the environment (for example physical structures associated with the project).

The hazard characterisation shall cover the full range of potential operating conditions to test the security of the storage complex.

3.3.2. Exposure assessment — based on the characteristics of the environment and the distribution and activities of the human population above the storage complex, and the potential behaviour and fate of leaking CO2 from potential pathways identified under Step 3.3.1.

3.3.3. Effects assessment — based on the sensitivity of particular species, communities or habitats linked to potential leakage events identified under Step 3.3.1. Where relevant it shall include effects of exposure to elevated CO2 concentrations in the biosphere (including soils, marine sediments and benthic waters (asphyxiation; hypercapnia) and reduced pH in those environments as a consequence of leaking CO2). It shall also include an assessment of the effects of other substances that may be present in leaking CO2 streams (either impurities present in the injection stream or new substances formed through storage of CO2). These effects shall be considered at a range of temporal and spatial scales, and linked to a range of different magnitudes of leakage events.

3.3.4. Risk characterisation — this shall comprise an assessment of the safety and integrity of the site in the short and long term, including an assessment of the risk of leakage under the proposed conditions of use, and of the worst-case environment and health impacts. The risk characterisation shall be conducted based on the hazard, exposure and effects assessment. It shall include an assessment of the sources of uncertainty identified during the steps of characterisation and assessment of storage site and when feasible, a description of the possibilities to reduce uncertainty.

Environmental protection and impact assessment

Summary

Several existing EU legislative instruments manage environmental risks associated with CCS, including Directive 2008/1/EC of the European Parliament and of the Council of 15 January 2008 concerning integrated pollution prevention and control, Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment and Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage (EU CO2 Storage Directive preamble paragraphs 15, 16, 17 and 30).

The CO2 Storage Directive accordingly amends these instruments to apply to CO2 capture and transport for the purposes of geological storage, and storage sites, as applicable (articles 31, 34 and 37).

 

Article/Section No.

Preamble paragraph 15
Preamble paragraph 16
Preamble paragraph 17
Preamble paragraph 30
Article 31
Article 34
Article 37

Instrument Text

Preamble paragraph 15

(15) At Community level, a number of legislative instruments are already in place to manage some of the environmental risks of CCS, in particular regarding capture and transport of CO2, and they should be used where possible.

Preamble paragraph 16

(16) Directive 2008/1/EC of the European Parliament and of the Council of 15 January 2008 concerning integrated pollution prevention and control is suitable for regulating, in respect of certain industrial activities, the risks of CO2 capture to the environment and human health and, as a result, should be applied to the capture of CO2 streams for the purposes of geological storage from installations covered by that Directive.

Preamble paragraph 17

(17) Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment should be applied to the capture and transport of CO2 streams for the purposes of geological storage. It should also apply to storage sites pursuant to this Directive.

Preamble paragraph 30

(30) Provisions are required concerning liability for damage to the local environment and the climate, resulting from any failure of permanent containment of CO2. Liability for environmental damage (damage to protected species and natural habitats, water and land) is regulated by Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage, which should be applied to the operation of storage sites pursuant to this Directive. Liability for climate damage as a result of leakages is covered by the inclusion of storage sites in Directive 2003/87/EC, which requires surrender of emissions trading allowances for any leaked emissions. […]

Article 31

Amendment of Directive 85/337/EEC

Directive 85/337/EEC is hereby amended as follows:

1. Annex I shall be amended as follows:

(a) point 16 shall be replaced by the following:

’16.Pipelines with a diameter of more than 800 mm and a length of more than 40 km:

—for the transport of gas, oil, chemicals, and,

—for the transport of carbon dioxide (CO2) streams for the purposes of geological storage, including associated booster stations.’;

 (b) the following points shall be added:

‘23. Storage sites pursuant to Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*).

24. Installations for the capture of CO2 streams for the purposes of geological storage pursuant to Directive 2009/31/EC from installations covered by this Annex, or where the total yearly capture of CO2 is 1,5 megatonnes or more.

(*) OJ L 140, 5.6.2009, p. 114.’;

2. Annex II shall be amended as follows:

(a) the following point shall be added to point 3:

‘(j) Installations for the capture of CO2 streams for the purposes of geological storage pursuant to Directive 2009/31/EC from installations not covered by Annex I to this Directive.’

(b) point (i) of point 10 shall be replaced by the following:

“(i) Oil and gas pipeline installations and pipelines for the transport of CO2 streams for the purposes of geological storage (projects not included in Annex I).’

Article 34

Amendment of Directive 2004/35/EC

In Annex III to Directive 2004/35/EC, the following paragraph shall be added:

’14 The operation of storage sites pursuant to Directive2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*);

(*) OJ L 140, 5.6.2009, p. 114.’

Article 37

Amendment of Directive 2008/1/EC

In Annex I to Directive 2008/1/EC, the following point shall be added:

‘6.9 Capture of CO2 streams from installations covered by this Directive for the purposes of geological storage pursuant to Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*).

(*) OJ L 140, 5.6.2009, p. 114.’

Permitting CO2 injection and storage

Summary

Article 6 of the EU CO2 Storage Directive requires member states to ensure that:

  1. no storage site is operated without a storage permit;
  2. permits are granted on the basis of objective, published and transparent criteria, through procedures open to all entities possessing the necessary capacities; and
  3. in granting a storage permit, priority is given to the holder of the exploration permit for that site, subject to certain specified conditions.

Article 7 sets out information to be included in storage permit applications, including:

  1. proof of technical competence of the potential operator;
  2. storage site and storage complex characterisation;
  3. total quantity of CO2 to be injected and stored, composition of CO2 streams etc;
  4. proposed monitoring, corrective measures and post-closure plans;
  5. proof that the financial security required under article 19 will be valid and effective before commencement of injection.

Permit applications are to be made available to the Commission for review under article 10, on which the Commission may issue a non-binding opinion. 

Article 8 sets out conditions for storage permits, including that the competent authority must be satisfied that the operator is financially sound and technically competent.

Article 9 sets out content requirements for permits, including:

  1. location and delimitation of the storage site and storage complex;
  2. requirements for storage operation, quantity of CO2 authorised to be stored, injection rates and pressures; and
  3. approved monitoring, corrective measures, and post-closure plans.

Article 11 sets out processes for change, review, update or withdrawal of storage permits. The competent authority is to review and where necessary update or withdraw permits if:

  1. it is notified or made aware of leakages or significant irregularities;
  2. it is aware of non-compliance with permit conditions;
  3. it appears necessary on the basis of the latest scientific findings and technological progress; and
  4. five years after issuance and every ten years thereafter.

Article/Section No.

Article 6
Article 7
Article 8
Article 9
Article 10
Article 11
Article 25

Instrument Text

Article 6

Storage permits

1. Member States shall ensure that no storage site is operated without a storage permit, that there shall be only one operator for each storage site, and that no conflicting uses are permitted on the site.

2. Member States shall ensure that the procedures for the granting of storage permits are open to all entities possessing the necessary capacities and that the permits are granted on the basis of objective, published and transparent criteria.

3. Without prejudice to the requirements of this Directive, priority for the granting of a storage permit for a particular site shall be given to the holder of the exploration permit for that site, provided that the exploration of that site is completed, that any condition set in the exploration permit has been complied with, and that the application for a storage permit is made during the period of validity of the exploration permit. Member States shall ensure that no conflicting uses of the complex are allowed during the permit procedure.

Article 7

Applications for storage permits

Applications to the competent authority for storage permits shall include at least the following information:

1. the name and address of the potential operator;

2. proof of the technical competence of the potential operator;

3. the characterisation of the storage site and storage complex and an assessment of the expected security of the storage pursuant to Article 4(3) and (4);

4. the total quantity of CO2 to be injected and stored, as well as the prospective sources and transport methods, the composition of CO2 streams, the injection rates and pressures, and the location of injection facilities;

5. a description of measures to prevent significant irregularities;

6. a proposed monitoring plan pursuant to Article 13(2);

7. a proposed corrective measures plan pursuant to Article 16(2);

8. a proposed provisional post-closure plan pursuant to Article 17(3);

9. the information provided pursuant to Article 5 of Directive 85/337/EEC;

10. proof that the financial security or other equivalent provision as required under Article 19 will be valid and effective before commencement of the injection.

Article 8

Conditions for storage permits

The competent authority shall issue a storage permit only if the following conditions are met:

1. the competent authority, on the basis of the application sub­ mitted pursuant to Article 7 and of any other relevant information, is satisfied that:

(a) all relevant requirements of this Directive and of other relevant Community legislation are met;

(b) the operator is financially sound and technically competent and reliable to operate and control the site and that professional and technical development and training of the operator and all staff are provided;

(c) in the case of more than one storage site in the same hydraulic unit, the potential pressure interactions are such that both sites can simultaneously meet the requirements of this Directive;

2. the competent authority has considered any opinion of the Commission on the draft permit issued pursuant to Article 10.

Article 9

Contents of storage permits

The permit shall contain at least the following:

1. the name and address of the operator;

2. the precise location and delimitation of the storage site and storage complex, and information concerning the hydraulic unit;

3. the requirements for storage operation, the total quantity of CO2 authorised to be geologically stored, the reservoir pressure limits, and the maximum injection rates and pressures;

4. the requirements for the composition of the CO2 stream and the CO2 stream acceptance procedure pursuant to Article 12, and, if necessary, further requirements for injection and storage in particular to prevent significant irregularities;

5. the approved monitoring plan, the obligation to implement the plan and requirements for updating it pursuant to Article 13 as well as the reporting requirements pursuant to Article 14;

6. the requirement to notify the competent authority in the event of leakages or significant irregularities, the approved corrective measures plan and the obligation to implement the corrective measures plan in the event of leakages or significant irregularities pursuant to Article 16;

7. the conditions for closure and the approved provisional post-closure plan referred to in Article 17;

8. any provisions on changes, review, updating and withdrawal of the storage permit pursuant to Article 11;

9. the requirement to establish and maintain the financial security or any other equivalent pursuant to Article 19.

Article 10

Commission review of draft storage permits

1. Member States shall make the permit applications available to the Commission within one month after receipt. They shall also make available other related material that shall be taken into account by the competent authority when it seeks to make a decision on the award of a storage permit. They shall inform the Commission of all draft storage permits and any other material taken into consideration for the adoption of the draft decision. Within four months after receipt of the draft storage permit, the Commission may issue a non-binding opinion on it. If the Commission decides not to issue an opinion, it shall inform the Member State within one month of submission of the draft permit and state its reasons.

2. The competent authority shall notify the final decision to the Commission, and where it departs from the Commission opinion it shall state its reasons.

Article 11

Changes, review, update and withdrawal of storage permits

1. The operator shall inform the competent authority of any changes planned in the operation of the storage site, including changes concerning the operator. Where appropriate, the competent authority shall update the storage permit or the permit conditions.

2. Member States shall ensure that no substantial change is implemented without a new or updated storage permit issued in accordance with this Directive. Annex II, point 13, first indent of Directive 85/337/EEC shall apply in such cases.

3. The competent authority shall review and where necessary update or, as a last resort, withdraw the storage permit:

(a) if it has been notified or made aware of any leakages or significant irregularities pursuant to Article 16(1);

(b) if the reports submitted pursuant to Article 14 or the environmental inspections carried out pursuant to Article 15 show non-compliance with permit conditions or risks of leakages or significant irregularities;

(c) if it is aware of any other failure by the operator to meet the permit conditions;

(d) if it appears necessary on the basis of the latest scientific findings and technological progress; or

(e) without prejudice to points (a) to (d), five years after issuing the permit and every 10 years thereafter.

4. After a permit has been withdrawn pursuant to paragraph 3, the competent authority shall either issue a new storage permit or close the storage site pursuant to Article 17(1)(c). Until a new storage permit has been issued, the competent authority shall temporarily take over all legal obligations relating to acceptance criteria where the competent authority decides to continue CO2 injections, monitoring and corrective measures pursuant to the requirements laid down in this Directive, the surrender of allowances in cases of leakage pursuant to Directive 2003/87/EC and preventive and remedial action pursuant to Articles 5(1) and 6(1) of Directive 2004/35/EC. The competent authority shall recover any costs incurred from the former operator, including by drawing on the financial security referred to in Article 19. In case of closure of the storage site pursuant to Article 17(1)(c), Article 17(4) shall apply.

Article 25

Registers

1. The competent authority shall establish and maintain:

(a) a register of the storage permits granted;

[…]

2.The registers referred to in paragraph 1 shall be taken into consideration by the competent national authorities in relevant planning procedures and when permitting any activity that could affect or be affected by the geological storage of CO2 in the registered storage sites.

IV. Operating and closing storage facilities
Monitoring, reporting and verification

Summary

Under article 13 of the EU CO2 Storage Directive, member states must ensure that the operator monitors the injection facilities, the storage complex and where appropriate the surrounding environment, for a number of specified purposes, including:

  1. comparison of actual and modeled behaviour of CO2 and formation water;
  2. detecting significant irregularities, migration or leakage; and
  3. detecting significant adverse effects for the environment.

Monitoring is to be based on a monitoring plan designed by the operator in accordance with requirements set out in Annex II (which sets out criteria for establishing and updating monitoring plans and for post-closure monitoring), and as approved by the competent authority.

Article 14 sets out requirements for reporting by the operator, including on monitoring results, quantities and properties of CO2 streams delivered and injected.  Reporting is to occur at a frequency determined by the competent authority, but at least once a year.

Under article 17 (and except in the situation where a storage permit is withdrawn, in which case the competent authority will become responsible for monitoring and corrective measures and can recover costs incurred from the operator), the operator will remain responsible for monitoring and reporting measures after a storage site has been closed, until responsibility for the storage site is transferred to the relevant authority under article 18.

After transfer of responsibility to the competent authority, monitoring may be reduced to a level that allows for detection of leakages or significant irregularities after transfer of responsibility under article 18.

Annex II clarifies the criteria for establishing and updating the monitoring plan and for post-closure monitoring activities. 

Article/Section No.

Article 13
Article 14
Article 17
Article 18
Annex II

Instrument Text

Article 13

Monitoring

1. Member States shall ensure that the operator carries out monitoring of the injection facilities, the storage complex (including where possible the CO2 plume), and where appropriate the surrounding environment for the purpose of:

(a) comparison between the actual and modelled behaviour of CO2 and formation water, in the storage site;

(b) detecting significant irregularities;

(c) detecting migration of CO2;

(d) detecting leakage of CO2;

(e) detecting significant adverse effects for the surrounding environment, including in particular on drinking water, for human populations, or for users of the surrounding biosphere;

(f) assessing the effectiveness of any corrective measures taken pursuant to Article 16;

(g) updating the assessment of the safety and integrity of the storage complex in the short and long term, including the assessment of whether the stored CO2 will be completely and permanently contained.

2. The monitoring shall be based on a monitoring plan designed by the operator pursuant to the requirements laid down in Annex II, including details on the monitoring in accordance with the guidelines established pursuant to Article 14 and Article 23(2) of Directive 2003/87/EC, submitted to and approved by the competent authority pursuant to Article 7(6) and Article 9(5) of this Directive. The plan shall be updated pursuant to the requirements laid down in Annex II and in any case every five years to take account of changes to the assessed risk of leakage, changes to the assessed risks to the environment and human health, new scientific knowledge, and improvements in best avail­ able technology. Updated plans shall be re-submitted for approval to the competent authority.

Article 14

Reporting by the operator

At a frequency to be determined by the competent authority, and in any event at least once a year, the operator shall submit to the competent authority:

1. all results of the monitoring pursuant to Article 13 in the reporting period, including information on the monitoring technology employed;

2. the quantities and properties of the CO2 streams delivered and injected, including composition of those streams, in the reporting period, registered pursuant to Article 12(3)(b);

3. proof of the putting in place and maintenance of the financial security pursuant to Article 19 and Article 9(9);

4. any other information the competent authority considers relevant for the purposes of assessing compliance with storage permit conditions and increasing the knowledge of CO2 behaviour in the storage site.

Article 17

Closure and post-closure obligations

1. A storage site shall be closed:

(a) if the relevant conditions stated in the permit have been met;

(b) at the substantiated request of the operator, after authorisation of the competent authority; or

(c) if the competent authority so decides after the withdrawal of a storage permit pursuant to Article 11(3).

2. After a storage site has been closed pursuant to points (a) or (b) of paragraph 1, the operator remains responsible for monitoring, reporting and corrective measures, pursuant to the requirements laid down in this Directive […], until the responsibility for the storage site is transferred to the competent authority pursuant to Article 18(1) to (5) of this Directive.

[…]

4. After a storage site has been closed pursuant to paragraph 1(c), the competent authority shall be responsible for monitoring and corrective measures pursuant to the requirements laid down in this Directive. The post-closure requirements pursuant to this Directive shall be fulfilled by the competent authority on the basis of the provisional post-closure plan referred to in paragraph 3 of this Article, which shall be updated as necessary.

5. The competent authority shall recover from the operator the costs incurred in relation to the measures referred to in paragraph 4, including by drawing on the financial security pursuant to Article 19.

Article 18

Transfer of responsibility

1. Where a storage site has been closed pursuant to points (a) or (b) of Article 17(1), all legal obligations relating to monitoring and corrective measures pursuant to the requirements laid down in this Directive, […] shall be transferred to the competent authority on its own initiative or upon request from the operator [subject to certain specified conditions being met].

6. After the transfer of responsibility, […] monitoring may be reduced to a level which allows for detection of leakages or significant irregularities. If any leakages or significant irregularities are detected, monitoring shall be intensified as required to assess the scale of the problem and the effectiveness of corrective measures.

Annex II

CRITERIA FOR ESTABLISHING AND UPDATING THE MONITORING PLAN REFERRED TO IN ARTICLE 13(2) AND FOR POST-CLOSURE MONITORING

1. Establishing and updating the monitoring plan

The monitoring plan referred to in Article 13(2) shall be established according to the risk assessment analysis carried out in Step 3 of Annex I, and updated with the purpose of meeting the monitoring requirements laid out in Article 13(1) according to the following criteria:

1.1. Establishing the plan

The monitoring plan shall provide details of the monitoring to be deployed at the main stages of the project, including baseline, operational and post-closure monitoring. The following shall be specified for each phase:

(a) parameters monitored;

(b) monitoring technology employed and justification for technology choice;

(c) monitoring locations and spatial sampling rationale;

(d) frequency of application and temporal sampling rationale.

The parameters to be monitored are identified so as to fulfil the purposes of monitoring. However, the plan shall in any case include continuous or intermittent monitoring of the following items:

(e) fugitive emissions of CO2 at the injection facility;

(f) CO2 volumetric flow at injection wellheads;

(g) CO2 pressure and temperature at injection wellheads (to determine mass flow);

(h) chemical analysis of the injected material;

(i) reservoir temperature and pressure (to determine CO2 phase behaviour and state).

The choice of monitoring technology shall be based on best practice available at the time of design. The following options shall be considered and used as appropriate:

(j) technologies that can detect the presence, location and migration paths of CO2 in the subsurface and at surface;

(k) technologies that provide information about pressure-volume behaviour and areal/vertical distribution of CO2-plume to refine numerical 3-D simulation to the 3-D-geological models of the storage formation established pursuant to Article 4 and Annex I;

(l) technologies that can provide a wide areal spread in order to capture information on any previously undetected potential leakage pathways across the areal dimensions of the complete storage complex and beyond, in the event of significant irregularities or migration of CO2 out of the storage complex.

1.2. Updating the plan

The data collected from the monitoring shall be collated and interpreted. The observed results shall be compared with the behaviour predicted in dynamic simulation of the 3-D-pressure-volume and saturation behaviour undertaken in the context of the security characterisation pursuant to Article 4 and Annex I Step 3.

Where there is a significant deviation between the observed and the predicted behaviour, the 3-D model shall be recalibrated to reflect the observed behaviour. The recalibration shall be based on the data observations from the monitoring plan, and where necessary to provide confidence in the recalibration assumptions, additional data shall be obtained.

Steps 2 and 3 of Annex I shall be repeated using the recalibrated 3-D model(s) so as to generate new hazard scenarios and flux rates and to revise and update the risk assessment.

Where new CO2 sources, pathways and flux rates or observed significant deviations from previous assessments are identified as a result of history matching and model recalibration, the monitoring plan shall be updated accordingly.

2. Post-closure monitoring

Post-closure monitoring shall be based on the information collected and modelled during the implementation of the monitoring plan referred to in Article 13(2) and above in point 1.2 of this Annex. It shall serve in particular to provide information required for the determination of Article 18(1).

Inspections

Summary

Article 15 of the EU CO2 Storage Directive provides for a system of routine and non-routine inspections of storage complexes, to check and promote compliance with the directive and monitor effects on the environment and on human health. 

Routine inspections are to be undertaken at least annually until three years after site closure and every five years thereafter until transfer of responsibility to the competent authority (after which they are to cease under article 18). Non-routine inspections are also provided for, in certain specified situations. 

Article/Section No.

Article 15
Article 18

Instrument Text

Article 15

Inspections

1. Member States shall ensure that the competent authorities organise a system of routine and non-routine inspections of all storage complexes within the scope of this Directive for the purposes of checking and promoting compliance with the requirements of the Directive and of monitoring the effects on the environment and on human health.

2. Inspections should include activities such as visits of the surface installations, including the injection facilities, assessing the injection and monitoring operations carried out by the operator, and checking all relevant records kept by the operator.

3. Routine inspections shall be carried out at least once a year until three years after closure and every five years until transfer of responsibility to the competent authority has occurred. They shall examine the relevant injection and monitoring facilities as well as the full range of relevant effects from the storage complex on the environment and on human health.

4. Non-routine inspections shall be carried out:

(a) if the competent authority has been notified or made aware of leakages or significant irregularities pursuant to Article 16(1);

(b) if the reports pursuant to Article 14 have shown insufficient compliance with the permit conditions;

(c) to investigate serious complaints related to the environment or human health;

(d) in other situations where the competent authority considers this appropriate.

5. Following each inspection, the competent authority shall prepare a report on the results of the inspection. The report shall evaluate compliance with the requirements of this Directive and indicate whether or not further action is necessary. The report shall be communicated to the operator concerned and shall be publicly available in accordance with relevant Community legislation within two months of the inspection.

Article 18

Transfer of responsibility

[…]

6. After the transfer of responsibility, routine inspections provided for in Article 15(3) shall cease.

Corrective and remedial measures

Summary

Under article 16 of the EU CO2 Storage Directive, member states are required to ensure that, in the event of any leakage or significant irregularity, the operator:

  1. immediately notifies the competent authority; and
  2. takes the necessary corrective measures at a minimum in accordance with the operator’s approved corrective measures plan.

The competent authority may also, at any time, require the operator to take corrective measures considered necessary, including measures additional to or different from those in the operator’s corrective measures plan, as well as measures to protect human health. 

Under article 17, the operator remains responsible for corrective measures after the closure of a storage site until responsibility for the site is transferred to the competent authority (except in the situation where a permit is withdrawn, in which case the competent authority will become responsible for corrective measures and can recover costs incurred from the operator).

Under article 16, the competent authority may undertake corrective measures itself at any time, including if the operator fails to take necessary corrective measures, in which case it can recover the associated costs from the operator.

Article/Section No.

Article 16
Article 17

Instrument Text

Article 16

Measures in case of leakages or significant irregularities

1. Member States shall ensure that in the event of leakages or significant irregularities, the operator immediately notifies the competent authority, and takes the necessary corrective measures, including measures related to the protection of human health. In cases of leakages and significant irregularities which imply the risk of leakage, the operator shall also notify the competent authority pursuant to Directive 2003/87/EC.

2. The corrective measures referred to in paragraph 1 shall be taken as a minimum on the basis of a corrective measures plan submitted to and approved by the competent authority pursuant to Article 7(7) and Article 9(6).

3. The competent authority may at any time require the operator to take the necessary corrective measures, as well as measures related to the protection of human health. These may be additional to or different from those laid out in the corrective measures plan. The competent authority may also at any time take corrective measures itself.

4. If the operator fails to take the necessary corrective measures, the competent authority shall take the necessary corrective measures itself.

5. The competent authority shall recover the costs incurred in relation to the measures referred to in paragraphs 3 and 4 from the operator, including by drawing on the financial security pursuant to Article 19.

Article 17

Closure and post-closure obligations

1. A storage site shall be closed:

(a) if the relevant conditions stated in the permit have been met;

(b) at the substantiated request of the operator, after authorisation of the competent authority; or

(c) if the competent authority so decides after the withdrawal of a storage permit pursuant to Article 11(3).

2. After a storage site has been closed pursuant to points (a) or (b) of paragraph 1, the operator remains responsible for […] corrective measures, pursuant to the requirements laid down in this Directive, […] until the responsibility for the storage site is transferred to the competent authority pursuant to Article 18(1) to (5) of this Directive. […]

[…]

4. After a storage site has been closed pursuant to paragraph 1(c), the competent authority shall be responsible for […] corrective measures pursuant to the requirements laid down in this Directive […]. The post-closure requirements pursuant to this Directive shall be fulfilled by the competent authority on the basis of the provisional post-closure plan referred to in paragraph 3 of this Article, which shall be updated as necessary.

[…]

5. The competent authority shall recover from the operator the costs incurred in relation to the measures referred to in paragraph 4, including by drawing on the financial security pursuant to Article 19.

Operational liabilities

Summary

Preamble paragraph 30 of the EU CO2 Storage Directive highlights that liability for any environmental damage caused by a CCS activity is governed by Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage. Article 34 amends Directive 2004/35/EC to apply it to the operation of storage sites under the EU CO2 Storage Directive.

Liability for climate damage resulting from leakage is regulated by Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading. Liabilities other than those covered by these directives and the EU CO2 Storage Directive itself are to be dealt with at national level (preamble paragraph 34).

Under article 17, the operator remains responsible for all obligations relating to the surrender of allowances in case of leakages (Directive 2003/87/EC) and preventive and remedial actions required by Directive 2004/35/EC until responsibility for the storage site is transferred to the competent authority (except in the situation where a permit is withdrawn, in which case the competent authority will become responsible for these obligations and can recover costs incurred from the operator).

Article/Section No.

Preamble paragraph 30
Preamble paragraph 34
Article 17
Article 34

Instrument Text

Preamble paragraph 30

(30) Provisions are required concerning liability for damage to the local environment and the climate, resulting from any failure of permanent containment of CO2. Liability for environmental damage (damage to protected species and natural habitats, water and land) is regulated by Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage, which should be applied to the operation of storage sites pursuant to this Directive. Liability for climate damage as a result of leakages is covered by the inclusion of storage sites in Directive 2003/87/EC, which requires surrender of emissions trading allowances for any leaked emissions. […]

Preamble paragraph 34

(34) Liabilities other than those covered by this Directive, Directive 2003/87/EC and Directive 2004/35/EC, in particular concerning the injection phase, the closure of the storage site and the period after transfer of legal obligations to the competent authority, should be dealt with at national level.

Article 17

Closure and post-closure obligations

1. A storage site shall be closed:

(a) if the relevant conditions stated in the permit have been met;

(b) at the substantiated request of the operator, after authorisation of the competent authority; or

(c) if the competent authority so decides after the withdrawal of a storage permit pursuant to Article 11(3).

2. After a storage site has been closed pursuant to points (a) or (b) of paragraph 1, the operator remains responsible for […] all obligations relating to the surrender of allowances in case of leakages pursuant to Directive 2003/87/EC and preventive and remedial actions pursuant to Articles 5 to 8 of Directive 2004/35/EC until the responsibility for the storage site is transferred to the competent authority pursuant to Article 18(1) to (5) of this Directive.

[…]

4. After a storage site has been closed pursuant to paragraph 1(c), the competent authority shall be responsible for […] all obligations relating to the surrender of allowances in case of leakages pursuant to Directive 2003/87/EC and preventive and remedial actions pursuant to Articles 5 to 8 of Directive 2004/35/EC.

[…]

5. The competent authority shall recover from the operator the costs incurred in relation to the measures referred to in paragraph 4, including by drawing on the financial security pursuant to Article 19.

Article 34

Amendment of Directive 2004/35/EC

In Annex III to Directive 2004/35/EC, the following paragraph shall be added:

’14 The operation of storage sites pursuant to Directive2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (*);

(*) OJ L 140, 5.6.2009, p. 114.’

Financial security

Summary

Article 19 requires member states to ensure that, as part of the storage permitting process, operators provide proof that adequate provisions can be established (on the basis of arrangements determined by member states) to meet all obligations arising under the storage permit, including closure and post-closure obligations and any obligations arising under the EU ETS Directive.

This financial security must be valid and effective prior to the commencement of injection. It must be periodically adjusted to account for changes to assessed risk of leakage and estimated costs of the above obligations, and must continue until:

  1. responsibility for the storage site is transferred to the competent authority in accordance with article 18; or
  2. where a storage permit has been withdrawn, either a new permit has been issued, or responsibility for the storage site is transferred to the competent authority in accordance with Article 18.

Article/Section No.

Article 19

Instrument Text

Article 19

Financial security

1. Member States shall ensure that proof that adequate provisions can be established, by way of financial security or any other equivalent, on the basis of arrangements to be decided by the Member States, is presented by the potential operator as part of the application for a storage permit. This is in order to ensure that all obligations arising under the permit issued pursuant to this Directive, including closure and post-closure requirements, as well as any obligations arising from inclusion of the storage site under Directive 2003/87/EC, can be met. This financial security shall be valid and effective before commencement of injection.

2. The financial security shall be periodically adjusted to take account of changes to the assessed risk of leakage and the estimated costs of all obligations arising under the permit issued pursuant to this Directive as well as any obligations arising from inclusion of the storage site under Directive 2003/87/EC.

3. The financial security or any other equivalent referred to in paragraph 1 shall remain valid and effective:

(a) after a storage site has been closed pursuant to points (a) or (b) of Article 17(1), until the responsibility for the storage site is transferred to the competent authority pursuant to Article 18(1) to (5);

(b) after the withdrawal of a storage permit pursuant to Article 11(3):

(i) until a new storage permit has been issued;

(ii) where the site is closed pursuant to Article 17(1)(c), until the transfer of responsibility pursuant to Article 18(8), provided the financial obligations referred to in Article 20 have been fulfilled.

Enforcement

Summary

Article 28 requires member states to establish and implement rules on penalties through which to enforce national provisions adopted in accordance with the directive. Such penalties are to be effective, proportionate and dissuasive. 

Article/Section No.

Article 28

Instrument Text

Article 28

Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission by 25 June 2011 and shall notify it without delay of any subsequent amendment affecting them.

Site closure

Summary

Article 3 of the EU CO2 Storage Directive defines “closure” of a storage site as the definitive cessation of CO2 injection into that storage site. Therefore, the “post-closure” period includes periods both before and after transfer of responsibility to the competent authority.

Article 17 provides for storage sites to be closed (i.e. definitive cessation of injection):

  1. if the relevant conditions in the storage permit have been met;
  2. at the request of the operator, provided the competent authority authorises such request; or
  3. if the competent authority so decides, after the withdrawal of a storage permit.

Until transfer of responsibility for the storage site to the competent authority, operators remain liable for:

  1. monitoring, reporting and corrective measures;
  2. any obligation under the EU ETS Directive to surrender allowances following leakage; and
  3. preventive and remedial actions under Directive 2004/35/EC regarding environmental liability.

Operators are also responsible for sealing the storage site and removing injection facilities.

These obligations must be fulfilled on the basis of a post-closure plan prepared by the operator in accordance with best practice and requirements set out in Annex II.

Where a storage site is closed following withdrawal of a storage permit, the competent authority:

  1.  is to take on the above obligations (excluding the obligation to seal the site and remove the injection facilities), to be undertaken in accordance with the operator’s post-closure plan; and
  2. may recover any associated costs from the operator.

 

 

Article/Section No.

Article 17

Instrument Text

Article 17

Closure and post-closure obligations

1. A storage site shall be closed:

(a) if the relevant conditions stated in the permit have been met;

(b) at the substantiated request of the operator, after authorisation of the competent authority; or

(c) if the competent authority so decides after the withdrawal of a storage permit pursuant to Article 11(3).

2. After a storage site has been closed pursuant to points (a) or (b) of paragraph 1, the operator remains responsible for monitoring, reporting and corrective measures, pursuant to the requirements laid down in this Directive, and for all obligations relating to the surrender of allowances in case of leakages pursuant to Directive 2003/87/EC and preventive and remedial actions pursuant to Articles 5 to 8 of Directive 2004/35/EC until the responsibility for the storage site is transferred to the competent authority pursuant to Article 18(1) to (5) of this Directive. The operator shall also be responsible for sealing the storage site and removing the injection facilities.

3. The obligations referred to in paragraph 2 shall be fulfilled on the basis of a post-closure plan designed by the operator based on best practice and in accordance with the requirements laid down in Annex II. A provisional post-closure plan shall be submitted to and approved by the competent authority pursuant to Article 7(8) and Article 9(7). Prior to the closure of a storage site pursuant to points (a) or (b) of paragraph 1 of this Article, the provisional post-closure plan shall be:

(a) updated as necessary, taking account of risk analysis, best practice and technological improvements;

(b) submitted to the competent authority for its approval; and

(c) approved by the competent authority as the definitive post- closure plan.

4. After a storage site has been closed pursuant to paragraph 1(c), the competent authority shall be responsible for monitoring and corrective measures pursuant to the requirements laid down in this Directive and for all obligations relating to the surrender of allowances in case of leakages pursuant to Directive 2003/87/EC and preventive and remedial action pursuant to Articles 5(1) and 6(1) of Directive 2004/35/EC. The post-closure requirements pursuant to this Directive shall be fulfilled by the competent authority on the basis of the provisional post-closure plan referred to in paragraph 3 of this Article, which shall be updated as necessary.

5. The competent authority shall recover from the operator the costs incurred in relation to the measures referred to in paragraph 4, including by drawing on the financial security pursuant to Article 19.

V. Management of long-term responsibilities and liabilities
Allocation of long term responsibilities & liabilities

Summary

Article 18 of the EU CO2 Storage Directive provides for transfer to the competent authority of all legal obligations relating to:

  1. monitoring and corrective measures;
  2. the surrender of allowances in the event of leakages pursuant to the EU ETS; and
  3. preventative and remedial action required by Directive 2004/35/CE on environmental liability with regard to the prevention and remedying of environmental damage,

where:

  1. a storage site has been closed in accordance with article 17(1)(a) or (b) (i.e. where the relevant conditions stated in the permit have been met, or at the substantiated request of the operator, after authorisation of the competent authority);
  2. all available evidence indicates that the stored CO2 will be completely and permanently contained;
  3. a minimum period as determined by the competent authority has elapsed (no shorter than 20 years, unless the competent authority is convinced before the end of that period that all available evidence indicates the stored CO2 will be completely and permanently contained);
  4. the obligation under article 20 to contribute financially to post closure stewardship has been fulfilled; and
  5. the site has been sealed an injection facilities removed.

Notwithstanding the above, in cases of operator fault, article 18(7) provides that the competent authority will recover from the former operator costs incurred after transfer of responsibility.

In order to demonstrate that all available evidence indicates that stored CO2 will be completely and permanently contained, under article 18(2) the operator must submit to the competent authority a report demonstrating:

  1. the conformity of the actual behaviour of injected CO2 with modelled behaviour;
  2. the absence of detectable leakage; and
  3. that the site is evolving towards long-term stability.

Article 18(4) provides for Commission review of draft decisions of approval of transfer of responsibility, on which the Commission can issue non-binding opinions.

 

Article/Section No.

Article 18

Instrument Text

Article 18

Transfer of responsibility

1. Where a storage site has been closed pursuant to points (a) or (b) of Article 17(1), all legal obligations relating to monitoring and corrective measures pursuant to the requirements laid down in this Directive, the surrender of allowances in the event of leakages pursuant to Directive 2003/87/EC and preventive and remedial action pursuant to Articles 5(1) and 6(1) of Directive 2004/35/EC, shall be transferred to the competent authority on its own initiative or upon request from the operator, if the following conditions are met:

(a) all available evidence indicates that the stored CO2 will be completely and permanently contained;

(b) a minimum period, to be determined by the competent authority has elapsed. This minimum period shall be no shorter than 20 years, unless the competent authority is convinced that the criterion referred to in point (a) is complied with before the end of that period;

(c) the financial obligations referred to in Article 20 have been fulfilled;

(d) the site has been sealed and the injection facilities have been removed.

2. The operator shall prepare a report documenting that the condition referred to in paragraph 1(a) has been met and shall submit it to the competent authority for the latter to approve the transfer of responsibility. This report shall demonstrate, at least:

(a) the conformity of the actual behaviour of the injected CO2 with the modelled behaviour;

(b) the absence of any detectable leakage;

(c) that the storage site is evolving towards a situation of long-term stability.

The Commission may adopt guidelines on the assessment of the matters referred to in points (a), (b) and (c) of the first subparagraph, highlighting therein any implications for the technical criteria relevant to the determination of the minimum periods referred to in paragraph 1(b).

3. Where the competent authority is satisfied that the conditions referred to in points (a) and (b) of paragraph 1 are met, it shall prepare a draft decision of approval of the transfer of responsibility. The draft decision shall specify the method for determining that the conditions referred to in paragraph 1(d) have been met as well as any updated requirements for the sealing of the storage site and for the removal of injection facilities.

If the competent authority considers that the conditions referred to in points (a) and (b) of paragraph 1 are not met, it shall inform the operator of its reasons.

4. Member States shall make the reports referred to in paragraph 2 available to the Commission within one month after receipt. They shall also make available other related material that shall be taken into account by the competent authority when it prepares a draft decision of approval on the transfer of responsibility. They shall inform the Commission of all draft decisions of approval prepared by the competent authority pursuant to paragraph 3, including any other material taken into consideration for arriving at its conclusion. Within four months after receipt of the draft decision of approval, the Commission may issue a non- binding opinion on it. If the Commission decides not to issue an opinion, it shall inform the Member State within one month of submission of the draft decision of approval and state its reasons.

5. Where the competent authority is satisfied that the conditions referred to in points (a) to (d) of paragraph 1 are complied with, it shall adopt the final decision and notify that decision to the operator. The competent authority shall also notify the final decision to the Commission, and where it departs from the Commission opinion it shall state its reasons.

6. After the transfer of responsibility, routine inspections provided for in Article 15(3) shall cease and monitoring may be reduced to a level which allows for detection of leakages or significant irregularities. If any leakages or significant irregularities are detected, monitoring shall be intensified as required to assess the scale of the problem and the effectiveness of corrective measures.

7. In cases where there has been fault on the part of the operator, including cases of deficient data, concealment of relevant information, negligence, wilful deceit or a failure to exercise due diligence, the competent authority shall recover from the former operator the costs incurred after the transfer of responsibility has taken place. Without prejudice to Article 20, there shall be no further recovery of costs after the transfer of responsibility.

8. Where a storage site has been closed pursuant to Article 17(1)(c) [i.e. following withdrawal of a permit], transfer of responsibility shall be deemed to take place if and when all available evidence indicates that the stored CO2 will be completely and permanently contained, and after the site has been sealed and the injection facilities have been removed.

Financial contributions to long term stewardship

Summary

Under article 20 of the EU CO2 Storage Directive, member states must ensure that operators make a financial contribution before transfer of responsibility, on the basis of arrangements to be determined by the member state. The contribution:

  1. must cover at least anticipated monitoring costs for a period of  30 years; and
  2. may be used to cover costs borne by the competent authority after transfer to ensure that the CO2 is completely and permanently contained.

The article also empowers the EU Commission to develop guidelines to assist in estimating such costs, in order to ensure transparency and predictability for operators. The guidelines were released on 31 March 2011.  

Article/Section No.

Article 20

Instrument Text

Article 20

Financial mechanism

1. Member States shall ensure that the operator, on the basis of arrangements to be decided by the Member States, makes a financial contribution available to the competent authority before the transfer of responsibility pursuant to Article 18 has taken place. The contribution from the operator shall take into account those criteria referred to in Annex I and elements relating to the history of storing CO2 relevant to determining the post-transfer obligations, and cover at least the anticipated cost of monitoring for a period of 30 years. This financial contribution may be used to cover the costs borne by the competent authority after the transfer of responsibility to ensure that the CO2 is completely and permanently contained in geological storage sites after the transfer of responsibility.

2. The Commission may adopt guidelines for the estimation of the costs referred to in paragraph 1 to be developed in consultation with Member States with a view to ensuring transparency and predictability for operators.