ERIA Research Project FY2024, No. 16
Authors
- Pages
- 330
- Published in
- Indonesia
Table of Contents
- Table of Contents 6
- Geological Storage Potential of CO2 in Southeast Asia 19
- Establishment of Asia CCS/CCUS Value Chain as a Collective Framework in the Asia Pacific Region 21
- Legal and Policy Framework for Deployment of CCUS in Asia Region, focused on ASEAN 23
- Study on Financial Framework for Deployment of CCUS in the Asian Region, including ASEAN 29
- Geological Storage Potential of CO2 in Southeast Asia 34
- 1.1. Southeast Asian CO2 Storage Resource Development 34
- 1.1.1. Current CCS Deployment Status 34
- 1.2. Methodology 36
- 1.2.1. Basin Suitability Assessment and Source Sink Matching 36
- 1.2.2. Resource Calculation 40
- 1.2.2.1. Depleting and Depleted Hydrocarbon Fields 40
- 1.2.2.2. Saline Formations 42
- 1.2.2.3. CO2 EOR-Storage (CCUS) 44
- 1.3. Results and Discussion 46
- 1.3.1. Indonesia 46
- 1.3.1.1. CO2 Storage Resources Summary 47
- 1.3.1.2. Prospective Basins with Potential Clusters 51
- 1.3.1.2.1. Central Sumatra 51
- 1.3.1.2.2. South Sumatra Basin 52
- 1.3.1.2.3. Java Island 54
- 1.3.1.2.4. Kutei 56
- 1.3.1.3. Summary of storage deployment prospects, barriers, and issues 56
- 1.3.2. Malaysia 57
- 1.3.3. CO2 Storage Resource Summary 58
- 1.3.3.1. Prospective Basins with Potential Clusters 62
- 1.3.3.1.1. Malay Basin (Thailand and Malaysian Waters) 62
- 1.3.3.1.2. Sarawak 64
- 1.3.3.1.3. Sabah - Baram Delta 66
- 1.3.3.2. Summary of Storage Deployment Prospects, Barriers, and Issues 67
- 1.3.4. Brunei 67
- 1.3.4.1. CO2 Storage Resource Summary 67
- 1.3.4.2. Prospective Basins with Potential Clusters 69
- 1.3.4.2.1. Sabah - Baram Delta 69
- 1.3.4.3. Summary of Storage Deployment Prospects, Barriers, and Issues 71
- 1.3.5. Thailand 71
- 1.3.5.1. CO2 Storage Resource Summary 72
- 1.3.5.2. Prospective Basins with Potential Clusters 76
- 1.3.5.2.1. Pattani 76
- 1.3.5.2.2. Khorat, Greater Choa Phraya and Phitsanulok basins 77
- 1.3.5.3. Summary of storage deployment prospects, barriers, and issues 78
- 1.3.6. Viet Nam 78
- 1.3.6.1. CO2 Storage Resource Summary 79
- 1.3.6.2. Prospective Basins with Potential Clusters 82
- 1.3.6.2.1. Cuu Long Basin 83
- 1.3.6.3. Summary of Storage Deployment Prospects, Barriers, and Issues 85
- 1.3.7. Philippines 85
- 1.3.7.1. CO2 Storage Resource Summary 86
- 1.3.7.2. Prospective Basins with Potential Clusters 87
- 1.3.7.2.1. North Palawan Basin 87
- 1.3.7.3. Summary of Storage Deployment Prospects, Barriers, and Issues 88
- 1.3.8. Singapore 89
- 1.3.9. Cambodia, Lao PDR, and Myanmar 89
- 1.4. Summary and Recommendations for Storage Development 89
- Establishment of Asia CCS/CCUS Value Chain as a Collective Framework in the Asia Pacific Region 98
- 2.1. Introduction 98
- 2.2. Understanding Clusters, Hubs, and Networks 98
- 2.2.1. Clusters 98
- 2.2.2. CCS Hubs 99
- 2.2.3. CCS Networks 99
- 2.3. Strategic Benefit of CCS Networks 99
- 2.3.1. Cost Reductions through Shared Infrastructure 100
- 2.3.2. Enabling the Use of CCS for Smaller Emissions Sources 100
- 2.3.3. Enabling CCS in Regions without Access to Suitable Local Storage 100
- 2.3.4. Enabling Low-Carbon Industrial Production 100
- 2.3.5. Reduced Exposure to Resource Constraints 101
- 2.4. CCS transportation methods 101
- 2.4.1. Pipeline 101
- 2.4.2. Shipping 102
- 2.4.3. Rail and Truck 106
- 2.5. CCS Transport Cost Trends 106
- 2.6. Hypothetical CCS Network Design and Costs 112
- 2.6.1. CCS Network Configuration 112
- 2.6.2. Vertically Integrated CCS Project Configuration 113
- 2.6.3. CCS Network Emissions Sources 113
- 2.6.4. Design Basis 115
- 2.6.5. Cost Basis 119
- 2.6.6. CCS Network Design Costs 119
- 2.6.7. Conclusions and Recommendations 125
- 2.7. Regional Legal and Institutional Frameworks Necessary to Support CCS Hub and CO2 Transport Networks 126
- 2.7.1. Introduction 126
- 2.7.2. Regional Legal and Regulatory Frameworks for Southeast Asia 128
- 2.7.2.1. International Legal Frameworks - London Protocol Implications for Transboundary Transport and Storage of CO2 128
- 2.7.2.2. Transboundary transport of CO2 128
- 2.7.2.3. Storage of CO2 - Allocation of Responsibilities 130
- 2.7.2.4. Acceptance and Application of the London Protocol and Its Amendments 131
- 2.7.3. Regional Legal and Regulatory Frameworks for CCS 132
- 2.7.3.1. Cooperative Legal Framework – EU Directive Case Study 132
- 2.7.3.2. Cooperative Regulatory Framework 134
- 2.7.3.3. Enabling Policies 135
- 2.7.4. Models for Regional CCS Cooperation 135
- 2.7.5. Integrated Regional Emissions Trading System (ETS) 137
- 2.7.6. Project Considerations 141
- 2.7.6.1. Cost competitiveness of Southeast Asia 141
- 2.7.7. Integrated Investment Frameworks 141
- 2.7.8. Institutional Frameworks in Southeast Asia 144
- 2.8. Asian CCS Value Chain Centre 145
- 2.8.1. The Opportunity 145
- 2.8.2. Focus Areas for a CCS VCC 147
- 2.8.2.1. Policy, Regulations, and Standards 147
- 2.8.2.2. Network and Infrastructure Planning 148
- 2.8.2.3. Funding for CCS Infrastructure/Projects 148
- 2.8.2.4. Storage Resource Appraisal and Development 149
- Legal and Policy Framework for Deployment of CCUS in Asia Region, focused on ASEAN 151
- 3.1. Introduction 151
- 3.2. Overview and Methodology 152
- 3.2.1. Stakeholder Engagement 152
- 3.2.2. Review and Analysis 153
- 3.2.3. Structure 154
- 3.3. Policy Architecture for CCS – Overarching Considerations 154
- 3.3.1. Integration of CCS within Wider Domestic/International Commitments 154
- 3.3.2. Energy Roadmaps/Climate Strategies 155
- 3.3.2.1. National CCS Roadmaps/strategies 155
- 3.3.2.2. ASEAN Strategy for Carbon Neutrality 162
- 3.3.3. Paris Commitments/NDCs and CCS Specific Commitments 169
- 3.3.3.1. Singapore 169
- 3.3.3.2. Indonesia 169
- 3.3.3.3. Thailand 170
- 3.3.3.4. Malaysia 170
- 3.3.3.5. The Philippines 171
- 3.3.3.6. Viet Nam 171
- 3.3.3.7. Brunei Darussalam 171
- 3.3.4. Consideration and Position of CCS in Existing or Proposed Incentives and Support Mechanisms 172
- 3.3.4.1. Carbon Credits/Tax Credits/Funding/Finance 172
- 3.3.4.2. Transboundary Bilateral Agreements 177
- 3.4. Designing CCS-Specific Law and Regulation 178
- 3.4.1. Approach to Developing CCS-Specific Legislation 178
- 3.4.1.1. Supporting Domestic Policy Priorities 179
- 3.4.2. Role of Existing Regulatory Pathways 179
- 3.4.3. Social License Considerations 180
- 3.4.4. Scope of Frameworks 182
- 3.4.4.1. Permitting Various Applications 182
- 3.4.4.2. The Inclusion of Carbon Dioxide Removal (CDR) within CCS-Specific Legislative Frameworks 183
- 3.4.5. Detailed Review and Assessment of Domestic Regimes 184
- 3.4.6. Identifying and Designating a Regulatory Authority 186
- 3.4.7. Stakeholder Engagement in the Development of Legislation 187
- 3.5. Overarching Legal and Regulatory Considerations 189
- 3.5.1. International Obligations and Considerations 189
- 3.5.2. The Legality of Transboundary Offshore CO2 Storage Value Chains under the London Protocol 196
- 3.5.3. Interactions with Wider Domestic Legal Frameworks 199
- 3.5.4. Enabling Emerging Project Models 201
- 3.5.5. Eligibility under Carbon Crediting Mechanisms 202
- 3.5.6. Interaction with Reporting and Accounting Mechanisms 203
- 3.5.6.1. Accounting and Reporting Obligations in the Context of Transboundary CCS Value Chains 204
- 3.5.7. Developing National Protocols and Regulatory Guidelines 205
- 3.6. A CCS-Specific Legal and Regulatory Framework 208
- 3.6.1. Identifying the Key Elements of a Legal and Regulatory Framework 209
- 3.6.1.1. Assessment and Guidance Frameworks 209
- 3.6.2. ASEAN Nations’ Perspectives 211
- 3.6.3. Developing a Permitting Model for CCS Activities 213
- 3.6.4. Core Legal and Regulatory Issues Across the CCS Project Lifecycle – the Institute’s Model 216
- 3.6.5. Pre-Injection 218
- 3.6.5.1. Classification and Purity of CO2 Streams 218
- 3.6.5.2. Ownership of the Pore Space within CO2 Storage Sites 219
- 3.6.5.3. Ownership or Title to Stored CO2 220
- 3.6.5.4. Authorisation to Conduct Assessment for Potential CO2 Storage Sites 221
- 3.6.5.5. Site Characterisation Requirements 222
- 3.6.5.6. Construction and Development Requirements 223
- 3.6.5.7. Environmental Impact Assessments 224
- 3.6.5.8. Public Engagement Requirements 226
- 3.6.5.9. Clarification of Obligations where There are Interactions with Existing Resource Interests 227
- 3.6.5.10. Transboundary CO2 Storage Considerations 228
- 3.6.6. Operation 229
- 3.6.6.1. CO2 Capture 230
- 3.6.6.2. CO2 Transport 230
- 3.6.6.3. Authorisation of Storage Activities 231
- 3.6.6.4. Development of Plans 232
- 3.6.6.5. Monitoring, Reporting and Verification Requirements 233
- 3.6.6.6. Corrective Measures and Remediation Measures 234
- 3.6.6.7. Liability During the Project Period 235
- 3.6.7. Closure 237
- 3.6.7.1. Authorisation for Storage Site Closure 238
- 3.6.7.2. Well Plugging and Decommissioning Requirements 238
- 3.6.8. Post-Closure 239
- 3.6.8.1. Post Closure Site Care and Monitoring Requirements 240
- 3.6.8.2. Transfer of Liability and Stewardship 240
- 3.6.8.3. Financial Security 242
- Design and Structure of Indonesia’s New CCS-Specific Regime 213
- Study on Financial Framework for Deployment of CCUS in the Asian Region, including ASEAN 245
- 4.1. Introduction 245
- 4.2. Global Economic Net Zero Optimization (GENZO) Model 245
- 4.3. Scenarios 247
- 4.4. High-Level Results 249
- 4.5. CCS 275
- 4.6. The CCS Financing Challenge 285
- 4.7. Policies to Incentivise Investment in CCS 287
- 4.7.1. USA 287
- 4.7.2. European Union and the United Kingdom 290
- 4.7.3. Japan 293
- 4.7.4. Effective Policies – Observations 293
- 4.8. Public Finance for CCS in ASEAN 294
- 4.9. Potential Sources of External Finance 297
- 4.9.1. Multilateral Development Banks 297
- 4.9.2. Voluntary Carbon Markets 300
- 4.9.3. Sustainable Finance – Green and Climate Bonds 301
- 4.9.4. The Loss and Damage Fund 302
- 4.10. The Role of Carbon Pricing 303
- 4.11. Policy Recommendations 304
- 4.11.1. Phase 1 – First Projects; 2020s 305
- 4.11.2. Phase 2 – CCS Network Establishment and Deployment Ramp-up; 2030s 306
- 4.11.3. Phase 3 - CCS Industry Maturity: 2040s and beyond 308
- References 310
- Appendices 320
- Appendix A 320
- Appendix B 322