From carrot to stick – the impact of a changing landscape of CCS policy and funding in Australia since 1999
Rosie Johnstone A *A
Rosie Johnstone is a technical authority on carbon capture and storage (CCS) in Australia, engaging with federal and state government regulators, research institutions, local communities and emitters. Rosie has 25+ years’ experience in both oil and gas exploration and CCS across Australia, the Asia–Pacific region and the UK. Rosie was Shell Australia’s focal point for CCS sink identification in the Australia/Asia–Pacific region, from high-level screening to injection site planning in the Petrel Sub-basin. She joined GeoVault as Head of CCS Solutions in 2021 where she is now identifying and developing onshore CCS opportunities. She has a BSc (Hons) Geology from the University of Liverpool, UK and is the Interim Chair of the Carbon Capture Utilisation and Storage Network of Australia (CCUSNA) which formed in 2023. |
Abstract
Since 1999 successive Australian Commonwealth governments have provided direct funding for carbon capture, utilisation and storage (CCUS) projects, notably the carbon capture and storage (CCS) Flagships Fund (Rudd government, 2009). The most recent CCUS Hubs and Technologies Fund (Morrison government, 2022) was later revoked (Albanese government, 2022) marking a shift from direct funding (‘carrot’) to emission reduction through a strengthening of the Safeguard Mechanism, the introduction of a 43% emissions reduction target by 2030, and the establishment of the Net Zero Authority (‘stick’). Reports such as the ‘Net Zero Mobilisation Report’, have delineated the need for, and size of, the role of CCUS in Australia, especially for hard-to-abate sectors and the report states ‘private investment in a CCUS industry requires targeted government support’ i.e. funding. As government focus moves from direct funding support for CCS to CCU and direct air capture (DAC), the development of underground geological storage of carbon dioxide will be largely left to fossil fuel emitters, especially large liquefied natural gas (LNG) companies, reflected in current Western Australian government policy (Cook government, 2023) to develop CCS strategy as part of the LNG Jobs Taskforce. The only current exception is CarbonNet, operated by the Victorian government and one of the early CCS Flagship funded projects.
Keywords: Australian climate change policy, carbon capture and storage, carbon capture utilisation and storage, carbon sequestration, CCS, CCU, CCUS, funding, geological storage of CO2.
Rosie Johnstone is a technical authority on carbon capture and storage (CCS) in Australia, engaging with federal and state government regulators, research institutions, local communities and emitters. Rosie has 25+ years’ experience in both oil and gas exploration and CCS across Australia, the Asia–Pacific region and the UK. Rosie was Shell Australia’s focal point for CCS sink identification in the Australia/Asia–Pacific region, from high-level screening to injection site planning in the Petrel Sub-basin. She joined GeoVault as Head of CCS Solutions in 2021 where she is now identifying and developing onshore CCS opportunities. She has a BSc (Hons) Geology from the University of Liverpool, UK and is the Interim Chair of the Carbon Capture Utilisation and Storage Network of Australia (CCUSNA) which formed in 2023. |
References
Australian Government (2008) Australia’s Global Carbon Capture and Storage Initiative [Press release]. Available at https://poland.embassy.gov.au/wsaw/GCCSI.html
Australian Government (2024a) Carbon Capture Use and Storage Development Fund grant recipients. Available at https://business.gov.au/grants-and-programs/carbon-capture-use-and-storage-development-fund/grant-recipients
Australian Government (2024b) Carbon Capture, Use and Storage Hubs and Technologies Program – Hubs Stream. Helping build commercial scale carbon capture, use and storage assets and shared hub infrastructure. Available at https://business.gov.au/grants-and-programs/carbon-capture-use-and-storage-hubs-and-technologies-program-hubs-stream
Australian Government (2024c) Carbon Capture Technologies Program. Funding to support carbon capture utilisation and storage technologies. Available at https://business.gov.au/grants-and-programs/carbon-capture-technologies-program
Australian National Audit Office (2017) Low Emission Technologies for Fossil Fuels Report. Available at https://www.anao.gov.au/work/performance-audit/low-emissions-technologies-fossil-fuels
Bradshaw J, Rigg A (2001) The GEODISC Program: research into geological sequestration of CO2 in Australia. Environmental Geosciences 8(1), 166-176.
| Crossref | Google Scholar |
Carbon Storage Taskforce (2009) ‘National Carbon Mapping and Infrastructure Plan – Australia: Full Report.’ (Department of Resources, Energy and Tourism: Canberra) Available at https://www.ga.gov.au/__data/assets/pdf_file/0018/111339/NCM_Full_Report.pdf
Clean Energy Regulator (2023) NGER The Safeguard Mechanism. Available at https://www.cleanenergyregulator.gov.au/NGER/The-Safeguard-Mechanism
Geoscience Australia (2023) Geological Storage Studies (GEODISC and NCIP summaries). Available at https://www.ga.gov.au/scientific-topics/energy/resources/carbon-capture-and-storage-ccs/geological-storage-studies
Global Energy Monitor (2019) Low Emissions Technology Demonstration Fund. Available at https://www.gem.wiki/Low_Emissions_Technology_Demonstration_Fund
IEA (2021) Clean Energy Initiative. Available at https://prod.iea.org/policies/4869-clean-energy-initiative
Ministers for the Department of Industry, Science and Resources (2021) Net Zero 2050 [Press release]. Available at https://www.minister.industry.gov.au/ministers/taylor/media-releases/australias-plan-reach-our-net-zero-target-2050
Net Zero Australia (2023) Net Zero Mobilisation Report. Available at https://www.netzeroaustralia.net.au/mobilisation-report/
Parliament of Australia (2016) Australian climate change policy to 2015: a chronology. Available at https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1516/Climate2015
Parliament of Australia (2017) Paris climate agreement: a quick guide. Available at https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1718/Quick_Guides/ParisAgreement
Parliament of Australia (2022) Climate Change Bill. Available at https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6885
SPE (2017) CO2 Storage Resources Management System, Society of Petroleum Engineers. Available at https://www.spe.org/en/industry/co2-storage-resources-management-system/
WA Government (2023) New study into the potential of CCUS hubs in WA. Available at https://www.wa.gov.au/government/announcements/new-study-the-potential-of-ccus-hubs-wa
