Submission on proposed regulatory regime for carbon capture, utilisation and storage

^{Wairakei geothermal power station. iStock.}

The Commissioner has made a submission to the Ministry of Business, Innovation and Employment on the Government’s proposed regulatory regime for Carbon Capture, Utilisation and Storage.

He points out that current low carbon prices – resulting from unlimited use of forestry offsets in the NZ ETS – mean that any CCUS regime would be unlikely to be used in the short to medium term.

While a CCUS framework could be worth developing in the future for hard to abate sectors – such as cement and steel – the Commissioner cautions that officials should instead be focused on tackling gross emissions and ensuring the longevity of the NZ ETS.

The Commissioner has made a series of recommendations to consider if the proposed regime progresses. These include that:

• regulations should acknowledge the difference between emissions stored (which can be potentially re-released) and emissions prevented,
• carbon capture for use should not receive emissions reduction or storage credits,
• a monitoring, verification and permitting regime which includes the issue of long-term liability is carefully considered,
• site specific risk assessments for all proposed storage sites are be carried out along with more research into the geological suitability of New Zealand for CCUS.