Regulation of the Australian carbon capture and storage industry
Matthew Holding A *A Xodus Group, Perth, WA, Australia.
The APPEA Journal 63 S395-S398 https://doi.org/10.1071/AJ22137
Accepted: 20 March 2023 Published: 11 May 2023
© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.
Abstract
Australia has an emerging carbon capture and storage (CCS) industry, which is developing in support of Australia’s Climate Change Act 2022, Safeguard Mechanism and corporate climate goals. In order for the CCS industry to grow at the rate required to support these requirements, project risks need to be reduced to allow prompt CCS project sanction. However uncertainty exists within the CCS regulatory framework. There are various factors causing this uncertainty, including: Changing regulatory requirements, such as the Safeguard Mechanism; lack of guidelines for some approvals, including Site Closure; and legislation untested on CCS, particularly in key regulatory instruments such as Site Closure, Environment Plans and Safety Cases. The uncertainty these issues create adds to the lack of confidence within industry and investors to progress CCS projects at the rate and scale needed to abate emissions required to meet Australia’s climate goals.
Keywords: ACCU, Australian Carbon Credit Unit, carbon capture and storage, CCS, energy transition, net zero, regulation, risk, Safeguard Mechanism.
Matthew Holding has over 15 years’ experience in carbon abatement and environmental management. His understanding of the regulatory, scientific and industry trends see him operate at the forefront of greenhouse gas (GHG) management. Matt’s career initially focussed on environmental management and government approvals. He diversified his experience to include project management, health and safety, and risk management. Matt is currently employed by Xodus as the Climate and Emissions Lead, where he leads work scopes with complex regulatory and corporate drivers including GHG studies, GHG management plans, prepurchase due diligence and advisory projects. Prior to Xodus, Matt was the Study Manager for deepC Store Limited, leading a group of eight tier 1 organisations to execute a Phase 1 Feasibility Study for the CStore1 Floating Carbon Capture and Storage Project in offshore Australia. |
References
Clean Energy Regulator (2021) Carbon Capture and Storage Method 2021 - Simple Method Guide. User Guide for Carbon Capture and Storage Projects. Available at https://www.cleanenergyregulator.gov.au/DocumentAssets/Documents/CCS%20Simple%20Method%20Guide.pdfDCCEEW (2022) Draft Australian carbon capture and sequestration sea dumping permits. Available at https://storage.googleapis.com/files-au-climate/climate-au/p/prj2363c35c111a1e34cab5c/public_assets/DRAFT%20National%20offshore%20CCS%20guidance.pdf
DCCEEW (2023) Safeguard Mechanism Reforms. Position Paper, January 2023. Available at https://storage.googleapis.com/files-au-climate/climate-au/p/prj23cd662ff4387d8c254ae/public_assets/Safeguard%20Mechanism%20Reforms%20Position%20Paper.pdf
Global CCS Institute (2022) Global Status of CCS 2022. Available at https://status22.globalccsinstitute.com/wp-content/uploads/2022/11/Global-Status-of-CCS-2022_Download.pdf
