Think-tank urges government to craft policies on carbon dioxide storage

MANILA, Philippines - A private think-tank is urging government to craft a legal and regulatory framework anchored on carbon dioxide (CO2) capture and storage (CCS) to spur greater private sector investments in coal-fired power facilities in the country.

According to a report by Forensic Law and Policy Strategies Inc. (Forensic Solutions), the utilization of the CCS eco-friendly technology will benefit the Philippines which still imports most of its coal requirements despite its vast potentials for domestic production of this energy source.

The paper also noted that CCS “must be evaluated and harmonized with the country’s policy direction on self-sustainability, renewable energy, promotion of industry and protection of public interest.”

Forensic Solutions, headed by former Justice Secretary Alberto Agra, said crafting a legal and regulatory framework on CO2 emissions would encourage greater investments in the energy sector, which is in line with the Aquino administration’s goal of realizing private-public partnerships for government’s big-ticket projects.

The think-tank said even with the increasing viability of CCS as one of the measures to mitigate climate change, global investors have been wary of putting their money in large-scale, capital intensive technologies, saying “these are not proven to be commercially competitive, environmentally safe and accepted by the public.”

“A CCS-specific legal and regulatory framework may significantly contribute to overcoming these concerns, if to do so will regulate and determine jurisdiction, property rights (including intellectual property rights), liability and measurement, monitoring and verification,” the paper pointed out.

“The legal and regulatory framework must protect human health and safety; protect the environment and ecosystems, including underground sources of drinking water and other natural resources; ensure market confidence in greenhouse gas (GHG) reductions; and facilitate cost-effective and timely deployment of CCS technologies.”

According to the paper, CCS involves three main steps: capturing and separating CO2 from large facilities and installations that combust fossil fuels and biomass such as power plants and industrial facilities; compressing and transporting captured CO2 in liquid or supercritical states; and storing CO2 in appropriate reservoirs such as geological formations.

The private think-tank said “CCS technology may prove most viable in countries dependent or primarily using coal for power generation and industries, granting that the required regulatory framework is in place along with adequate assistance and incentives made available to prospective CCS participants.”

“The power and industry profile of the Philippines may make it a feasible location for application of CCS technology, being primarily a coal-consuming country with vast potential for local coal production,” it said. “However, with the bulk of its coal consumption being supplied by imported coal, the Philippines must strengthen its policy direction toward self-sustainability and promote development of renewal energy resources through enactment and continuing development of applicable legal and regulatory framework.”

“Significantly, electricity generation has been reported to account for almost 30 percent of CO2 emissions, with coal as the dominant source of primary energy,” it said. “While coal-fired power plants produce approximately twice as much greenhouse gas as other plants, many countries are expected to continue to depend on coal for electricity generation to ensure energy security at an affordable price,” Forensic Solutions said.

“Coal remains the fuel of choice for power generation in developing countries due to its relatively low cost, proven reliability of power plants for base load generation, and lack of suitable alternatives to provide the required scale of power generation at an affordable price,” it said.