TABLE OF CONTENTS Page
1. This document contains the amendments adopted by the Executive Board of the clean development mechanism (CDM) (hereinafter referred to as the Board) at its seventy-eighth meeting, to the CDM project standard (PS) (v.05) (CDM-EB65-A05-STAN). The document will be consolidated in a revised version of the PS.
2. The entry into force of this document is with immediate effect.
1. The following paragraphs shall read as follows:
1. The Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol (hereinafter referred to as the CMP), at its first session, established the basis of the regulatory framework for the clean development mechanism (hereinafter referred to as the CDM) to implement Article 12 of the Kyoto Protocol through the following:
(a) A nnex to decision 3/CMP.1: Modalities and procedures for a clean development mechanism (hereinafter referred to as the CDM M&Ps);
(b) A nnexes to decision 4/CMP.1, including annex II: Simplified modalities and procedures for small-scale clean development mechanism project activities (hereinafter referred to as the CDM SSC M&Ps);
(c) A nnex to decision 5/CMP.1: Modalities and procedures for afforestation and reforestation project activities under the clean development mechanism (hereinafter referred to as the CDM A/R M&Ps);
(d) Annex to decision 6/CMP.1: Simplified modalities and procedures for small-scale afforestation and reforestation project activities under the clean development mechanism (hereinafter referred to as the CDM SSC A/R M&Ps);
(e) Decision 7/CMP.1;
(f) Annex to decision 10/CMP.7: Modalities and procedures for carbon dioxide capture and storage in geological formations under the clean development mechanism (hereinafter referred to as the CDM CCS M&Ps).
2. The following paragraphs shall read as follows:
8. In addition to requirements in chapters 6 and 7, requirements in chapters 8, 9, 10, 11 and 12 specifically apply to small-scale project activities, large-scale afforestation and reforestation (A/R) project activities, small-scale A/R project activities, carbon dioxide capture and storage (CCS) project activities and PoAs, respectively.
9. Therefore, requirements in chapters 6, 7, 8, 9, 10 and 11 applicable to project participants for CDM project activities apply, where applicable, to coordinating/managing entities for CDM PoAs.
10. Requirements in chapter 13 apply to any type of CDM project activities and, as applicable, to CDM PoA. However, as experience with PoA is evolving, the applicability of certain requirements to PoA are yet to be defined and will be addressed in the future.
3. The following paragraph shall read as follows:
22. Project participants shall determine the type of CDM project activity or PoA they want to design and implement:
(a) Large-scale project activity;
(b) Small-scale project activity;
(c) Large-scale afforestation or reforestation project activity;
(d) Small-scale afforestation or reforestation project activity;
(e) CCS project activity; or
(f) Programme of activities, either large-scale, small-scale, large-scale A/R, small-scale A/R, or CCS.
4. The following paragraph shall read as follows:
76. Project participants shall select a DOE for the validation of the proposed CDM project activity that is accredited for the validation function and sectoral scopes(s)12 of the project activity. Project participants shall have a contractual arrangement with the DOE for the validation.
5. 12 The list of all 16 sectoral scopes, the DOEs accredited in each scope as well as the approved baseline and monitoring methodologies linked with these sectoral scopes are given on the UNFCCC CDM website.
6. The following new paragraphs shall be inserted under the new section:
11.bis.1 Definitions for CCS project activities
(a) Carbon dioxide capture and storage - the capture and transport of carbon dioxide from anthropogenic sources of emissions, and the injection of the captured carbon dioxide into an underground geological storage site for long-term isolation from the atmosphere;
(b) Geological storage site - a paired geological formation, or a series of such formations, consisting of an injection formation of relatively high porosity and permeability into which carbon dioxide can be injected, coupled with an overlying cap rock formation of low porosity and permeability and sufficient thickness which can prevent the upward movement of carbon dioxide from the storage formation;
(c) Operational phase - the period that begins when carbon dioxide injection commences and ends when carbon dioxide injection permanently ceases;
(d) Closure phase - the phase that follows the operational phase and is the period that begins when carbon dioxide injection permanently ceases and ends when the geological storage site has been closed;
(e) Closure of a geological storage site - the completion of the sealing of the geological storage site, including the appropriate plugging of wells relating to the geological storage site;
(f) Post-closure phase - the phase that follows the closure phase and is the period that begins when the geological storage site has been closed;
(g) Seepage - a transfer of carbon dioxide from beneath the ground surface or seabed ultimately to the atmosphere or ocean;
(h) Site development and management plan - the documented description of how a geological storage site will be operated and managed;
(i) History matching - the process of comparing observed results from the monitoring and measurement of a geological storage site with the results of the predictive numerical modelling of the behaviour of carbon dioxide injected into the geological storage site, and the use of the observed results to calibrate and update numerical models and modelling results. It can involve multiple iterations;
(j) Liability - the legal responsibility arising from the CCS project activity or the relevant geological storage site, with the exception of the obligations arising from a net reversal of storage as set out in section 8.4 of the Project cycle procedure but including all obligations related to the operation of the storage site (e.g. monitoring, remedial measures, etc.), to compensate for or remedy any significant damages, including damage to the environment, such as ecosystem damage, other material damages or personal injury;
(k) Remedial measures - actions and measures intended to stop or control any unintended physical leakage or seepage of carbon dioxide, to restore the integrity of a geological storage site, or to restore long-term environmental quality significantly affected by a CCS project activity;
(l) Net reversal of storage of carbon dioxide means that:
(i) For a verification period during the crediting period, the accumulated verified reductions in anthropogenic emissions by sources of greenhouse gases (GHGs) that have occurred as a result of a registered CDM project activity are negative (i.e. the seepage from the geological storage site of the CCS project activity exceeds the remainder of the emission reductions achieved by the CCS project activity);
(ii) For a verification period after the end of the last crediting period, seepage has occurred from the geological storage site of the CCS project activity.
11.bis.2 Description of project activity or programme of activities
1. In addition to the requirements mentioned in section 7.1 of the Project standard, for CCS project activities the project participants shall:
(a) Provide a description and analysis of the environmental conditions in the area of the geological storage site prior to any storage of carbon dioxide, including a description of the following:
(i) The hydrology, aquifer and groundwater properties, such as acidity and dissolved gases;
(ii) Where appropriate, the soils and soil gas properties, such as a carbon dioxide isotope analysis and carbon dioxide flux rate;
(iii) The ecosystems and the possible presence of rare or endangered or sensitive species and their habitats;
(iv) Climatic data;
(b) Demonstrate that the proposed project activity[1] does not involve:
(i) The transport of carbon dioxide from one country to another; and/or
(ii) A geological storage site that is located in more than one country.
11.bis.3 Host Party participation requirements
2. Project participants implementing a CCS project activity shall demonstrate that the host Party of the CCS project activity has:
(a) Submitted an expression of its agreement to the UNFCCC secretariat to allow the implementation of CCS project activities on its territory; and
(b) Established laws or regulations in accordance with the host Party participation requirements set out in section 4.1.bis of the Project cycle procedure, which state that, prior to hosting CDM CCS project activities on its territory, a host Party shall ensure that it has established laws and/or regulations which:
(i) Set procedures that include provisions for the appropriate selection, characterization and development of geological storage sites, recognizing the project requirements for CCS project activities under the CDM set out in section 11.bis.4 below;
(ii) Define means by which rights to store carbon dioxide in, and gain access to, a subsurface pore space can be conferred to project participants;
(iii) Provide for timely and effective redress for affected entities, individuals and communities for any significant damages, such as environmental damage, including damage to ecosystems, other material damages or personal injury, caused by the project activity, including in the post-closure phase;
(iv) Provide for timely and effective remedial measures to stop or control any unintended seepage of carbon dioxide, to restore the integrity of a geological storage site, and to restore long-term environmental quality significantly affected by a CCS project activity;
(v) Establish means for addressing liability arrangements for carbon dioxide geological storage sites, taking into account the provisions set out in section 11.bis.8 below;
(vi) For a host Party that accepts the obligation to address a net reversal of storage, establish measures to fulfil such an obligation.
3. In addition to the requirements for approval and authorization set out section 7.6 above, project participants shall seek written confirmation of the following from the DNA of the host Party:
(a) That the right to store carbon dioxide in, and gain access to, the proposed geological storage site has been conferred to them;
(b) That the host Party agrees to the financial provision described in the PDD (see section 11.bis.8 below);
(c) That the host Party accepts the allocation of liability as proposed in the PDD and the transfer of liability (see section 11.bis.9 below);
(d) Whether the host Party accepts the obligation to address a net reversal of storage in the situation referred to in section 8.4 of the Project cycle procedure.
11.bis.4 Selection and characterization of the geological storage site
4. The project participants shall describe the selection and characterization of geological storage site. Projects participants shall demonstrate that the they have selected a geological storage site:
(a) In which, under the proposed conditions of use:
(i) There is no significant risk of seepage(as evidenced by the results of the risk and safety assessment carried out in accordance with section 11.bis.6);
(ii) No significant environmental or health risks exist (as evidenced by the risk and safety assessment carried out in accordance with section 11.bis.6); and
(iii) The selected geological storage site complies with all laws and regulations of the host Party, as applicable;
(b) That is not located in international waters.
5. When selecting a geological storage site, projects participants shall evaluate:
(a) All available evidence, such as data, analysis and history matching, indicating that the injected carbon dioxide will be completely and permanently stored such that, under the proposed or actual conditions of use, no significant risk of seepage or risk to human health or the environment exists. The results of this evaluation should be supported by, and consistent with, the results of the risk and safety assessment carried out in accordance with section 11.bis.6 below;
(b) Whether the geological storage site is suitable for potable water supply.
6. If the proposed geological storage site is suitable for potable water supply, a decision about whether the site is eligible for geological storage shall be made by the host Party, taking into account the results of the site characterization and the risk and safety assessment of the proposed geological storage site, following the procedures outlined in the CCS modalities and procedures.
7. When characterizing the geological storage site, project participants shall take the following steps:
(a) Step 1: data and information collection, compilation and evaluation. The project participant shall collect sufficient data and information to characterize the geological storage site and determine potential seepage pathways. The project participant shall evaluate (i) the collected data and information in order to make a preliminary assessment of the site’s storage capacity and to assess the viability of monitoring and (ii) the quality of the data and information and, where required, collect new data;
(b) Step 2: characterization of the geological storage site architecture and surrounding domains. The project participant shall assess the known and inferred structures within the injection formation(s) and cap rock formation(s) that would act as barriers to, or facilitators of, the migration of injected carbon dioxide. The project participant shall compile a numerical three-dimensional static earth model (or models) of the geological storage site. The project participant shall assess the uncertainty associated with key parameters used to build the model. The model shall be used by the project participant to characterize, inter alia:
(i) The structure of the geological containment;
(ii) All relevant geological properties of the injection formation(s);
(iii) The cap rock formation(s) and overburden;
(iv) The fracture system;
(v) The areal and vertical extent of the geological storage site (e.g. the injection formation, the cap rock formation, overburden, secondary containment zones and surrounding domains);
(vi) The storage capacity in the injection formation(s);
(vii) The fluid distribution and physical properties;
(viii) Other relevant characteristics;
(c) Step 3: characterization of dynamic behaviour, sensitivity characterization and risk assessment. The project participant shall assess how the injected carbon dioxide can be expected to behave within the geological storage site architecture and surrounding domains, with a particular focus on the risk of seepage. The project participant shall utilize numerical dynamic modelling of the injected carbon dioxide using the static model developed in step 2 above to assess:
(i) Coupled processes (i.e. the interaction between each single process in the model);
(ii) Where possible, reactive processes (e.g. the interaction of injected carbon dioxide with in situ minerals in the numerical model); and
(iii) Short-term and long-term simulations.
Such numerical modelling shall be used to provide insight into the pressure and extent of carbon dioxide in the geological storage site over time, the risk of fracturing the cap rock formation(s) and the risk of seepage. Multiple simulations shall be conducted to identify the sensitivity of the assessments to assumptions made. The simulations carried out in this step shall form the basis for risk and safety assessments, detailed in section 11.bis.6 below;
(d) Step 4: establishment of a site development and management plan. Drawing on steps 1–3 above, the project participant shall establish a site development and management plan. The development and management plan shall address the proposed conditions of use for the geological storage site and include, inter alia, descriptions of:
(i) The preparation of the site;
(ii) Well construction, such as materials and techniques used, and the location, trajectory and depth of the well;
(iii) Injection rates and the maximum allowable near-wellbore pressure;
(iv) Operating and maintenance programmes and protocols;
(v) The timing and management of the closure phase of the proposed CCS project activity, including site closure and related activities.
8. When characterizing and selecting a geological storage site, project participants shall use a wide range of data and information, including, inter alia:
(a) Geological information, such as descriptions of the overburden and cap rock formation(s) and injection formation(s), locations of mapped faults, subsurface well and wellbore information, permeability and porosity, which are important in determining the injectivity of the injection formation, and the cap rock formation containment capacity, and information about regional tectonics, including the stress field and historical seismic activity;
(b) Geophysical information, such as the thickness and lateral extent of the storage and cap rock formation(s), pressure, temperature, the existence of faults, and reservoir heterogeneity. Sources of data may include, inter alia, well logs, sonic logs and seismic surveys;
(c) Geomechanical information, such as the stress state and the rock fracture pressure within the injection formation(s) and the cap rock formation(s). Sources of data include borehole data, such as breakouts inferred from calliper and televiewer logs, minifrac results, information about anisotropy within the reservoir, and mud loss events;
(d) Geochemical information, such as information on rock and fluid properties and mineralogy. Fluid properties, such as the brine salinity, should also be used to determine dissolution trapping rates;
(e) Hydrogeological information, such as aquifer characteristics and aquifer flow direction and rates within the geological storage site, the overburden and surrounding domains.
9. Project participants shall demonstrate that they have selected and characterized the geological storage site in accordance with the requirements referred to in paragraphs 4–8 above and provide all relevant supporting documents. Project participants shall describe and document transparently the methods, assumptions and models used, the type and sources of information and data used, as well as the process and steps taken to characterize and select the geological storage site, including the findings and outcomes from each step.
11.bis.5 Project boundary
10. The following applies in addition to paragraphs 39 and 40 above [Project standard]: The project participants shall define the boundary of a CCS project activity to include:
(a) Where applicable, the following:
(i) The installation where the carbon dioxide is captured;
(ii) Any treatment facilities;
(iii) Transportation equipment, including pipelines and booster stations along a pipeline, or offloading facilities in the case of transportation by ship, rail or road tanker;
(iv) Any reception facilities or holding tanks at the injection site;
(v) The injection facility;
(vi) Subsurface components, including the geological storage site and all potential sources of seepage, as determined during the characterization and selection of the geological storage site;
(b) The vertical and lateral limits of the carbon dioxide geological storage site that are expected when the carbon dioxide plume stabilizes over the long term during the closure phase and the post-closure phase.
11.bis.6 Risk and safety assessment
11. Project participants shall carry out a comprehensive risk and safety assessment in order to assess the integrity of the geological storage site and potential impacts on human health and ecosystems in proximity to the proposed CCS project activity. The risk and safety assessment shall also be used to inform environmental and socioeconomic impact assessments. The risk and safety assessment shall:
(a) Consider specific risks associated with containment failure resulting in emissions of greenhouse gases from above-ground installations and seepage from subsurface installations, and the potential effects on, inter alia:
(i) The contamination of underground sources of drinking water;
(ii) The chemical properties of seawater;
(iii) Human health and ecosystems (e.g. as a result of carbon dioxide accumulations at dangerous levels in non-turbulent air);
(b) Consider the risk of continuous slow seepage from a geological storage site. This type of event can arise due to, inter alia:
(i) Seepage along injection well(s) or abandoned well(s);
(ii) Seepage along a fault or fracture;
(iii) Seepage through the cap rock formation;
(c) Consider the risk of sudden mass release of carbon dioxide from surface CCS installations, for example due to pipeline rupture;
(d) Cover the full chain of CCS, including surrounding environments;
(e) Provide assurance of safe operational integrity regarding the containment of carbon dioxide, based on site-specific information about the geological storage site, potential seepage pathways, and secondary effects of storing carbon dioxide in the geological storage site, such as brine migration;
(f) Be used to determine operational data for the application of the site development and management plan, such as to set the appropriate maximums of injection pressure that will not compromise the confining cap rock formation(s) and the overburden of the geological storage site;
(g) Take account of the effects of potential induced seismicity or other geological impacts, as well as any other potential consequences for the environment, including on local ecosystems, property and public health, and global environmental effects on the climate directly attributable to the CCS project activity, including effects due to seepage;
(h) Be used to help prioritize locations and approaches for enhanced monitoring activities;
(i) Provide a basis for remedial measures, including plans for responses that can stop or control any unintended emissions from surface CCS installations and seepage of carbon dioxide, restore the integrity of a geological storage site, and restore long-term environmental quality significantly affected by a CCS project activity. Such measures and plans shall accompany monitoring plans;
(j) Include a communication plan.
12. In order to assess the potential risks of carbon dioxide capture, transportation and storage in a geological storage site, project participants shall take the following steps:
(a) Step 1: hazard characterization. The project participant shall analyse the following:
(i) Potential hazards resulting from the capture, transportation and injection of carbon dioxide;
(ii) Potential seepage pathways from the geological storage site;
(iii) The magnitude of potential seepage for identified potential seepage pathways;
(iv) Critical parameters affecting potential seepage, such as the maximums of injection formation pressure, injection rates and temperature;
(v) The sensitivity to various assumptions made during numerical modelling;
(vi) Any other factors which could pose a hazard to human health and the environment;
(b) Step 2: exposure assessment. The project participant shall undertake an exposure assessment based on the characteristics of surrounding populations and ecosystems, the potential fate and behaviour of any seeped carbon dioxide, and other factors;
(c) Step 3: effects assessment. The project participant shall undertake an effects assessment based on the sensitivity of species, communities or habitats linked to potential seepage events identified during the hazard characterization and the effects of elevated carbon dioxide concentrations in the atmosphere, biosphere and hydrosphere;
(d) Step 4: risk characterization. The project participant shall assess the safety and integrity of the geological storage site in the short-, medium- and long-term, including an assessment of the risk of seepage under the proposed conditions of use set out in the site development and management plan;
(e) Step 5: contingency plan for large incidents, including seepage. The project participant shall prepare all the necessary plans that are to be put in place in case of large incidents, including availability of trained personnel, materials and equipment and financial means to mitigate adverse impacts of the incident and teams prepared to act as swiftly as possible.
13. Project participants shall provide:
(a) A detailed description of the risk and safety assessment referred to in paragraphs 11 and 12 above;
(b) A copy of the communications and contingency plans referred to in paragraphs 11 and 12 above; and
(c) References to all relevant supporting documents.
11.bis.7 Monitoring
14. Project participants shall include in the PDD provisions for monitoring the proposed CCS project activity that meet the following objectives:
(a) To provide assurance of the environmental integrity and safety of the geological storage site;
(b) To confirm that the injected carbon dioxide is contained within the geological storage site and within the project boundary;
(c) To ensure that injected carbon dioxide is behaving as predicted in order to minimize the risk of any seepage or other adverse impacts;
(d) To ensure that good site management is taking place, taking account of the proposed conditions of use set out in the site development and management plan, established in step 4 of section 11.bis.4 above;
(e) To detect and estimate the flux rate and total mass of carbon dioxide from any seepage;
(f) To determine whether timely and appropriate remedial measures have been carried out in the event of seepage;
(g) To determine the reductions in anthropogenic emissions by sources of greenhouse gases that have occurred as a result of the registered CCS project activity.
15. In developing the monitoring plan for the proposed CCS project activity, project participants shall meet the objectives set out above by:
(a) Reflecting the principles and criteria of international good practice for the monitoring of geological storage sites and consider the range of technologies described in the relevant sections of the Intergovernmental Panel on Climate Change (IPCC) 2006 Guidelines for National Greenhouse Gas Inventories and other good practice guidance;
(b) Transparently specifying which parameters and information will be monitored and collected, and the location and frequency of application of different monitoring techniques during the operational phase, closure phase and post-closure phase;
(c) Providing for specific techniques and methods that can:
(i) Detect and estimate the quantity of the carbon dioxide stored in the geological storage site;
(ii) Detect potential seepage via pathways in the cap rock formation(s) and in the overburden and surrounding domains in the geological storage site;
(iii) Estimate the flux rate and total mass of carbon dioxide from any seepage;
(d) Including provisions for history matching, by using the monitoring results to calibrate and update the numerical models that were used to characterize the geological storage site;
(e) Providing for measurement of the carbon dioxide stream and composition, including impurities, at various points in the carbon dioxide capture, transportation and storage chain, including at the point(s) of injection into the geological storage site, at an appropriate frequency;
(f) Providing for measurement of the temperature and pressure at the top and bottom of the injection well(s) and observation well(s), at an appropriate frequency;
(g) Providing for the monitoring and measurement of various geological, geochemical and geomechanical parameters, such as fluid pressures, displaced fluid characteristics, fluxes and microseismicity, at an appropriate frequency;
(h) Providing for the monitoring and measurement of relevant parameters in the overburden and surrounding domains of the geological storage site, such as the monitoring of groundwater properties, soil gas measurements and measurements of the surface concentrations of carbon dioxide in the air, which shall be calibrated to detect signs of seepage, at an appropriate frequency;
(i) Providing for the detection of corrosion or degradation of the transport and injection facilities;
(j) Providing for an assessment of the effectiveness of any remedial measures taken in the event of seepage.
16. Project participants shall, for each verification period, carry out history matching and, where necessary, update the numerical models used to characterize the geological storage site by conducting new simulations using the monitored data and information. Project participants shall adjust the numerical models if significant deviations (as defined in the approved CCS methodology used by the CCS project activity) occur between observed and predicted behaviour. The project participants shall immediately notify the host Party and the CDM Executive Board in writing if a significant deviation occurs at any stage of the project cycle.
17. Where significant deviations are observed during history matching or when requesting a renewal of the crediting period, the project participants shall, as appropriate:
(a) Recharacterize the geological storage site, in accordance with section 11.bis.4 above;
(b) Revise the project boundary;
(c) Update the risk and safety assessment, in accordance with section 11.bis.6 above;
(d) Update the environmental and socioeconomic impact assessments, referred to in section 11.bis.10 below;
(e) Revise the monitoring plan, in order to improve the accuracy and/or completeness of data and information, taking into account observed deviations determined during history matching, changes to the project boundary, changes to the risk and safety assessment, changes to the environmental and socioeconomic impact assessments, new scientific knowledge and improvements in the best available technology;
(f) Update the site development and management plan, taking account of the results of the activities described in subparagraphs (a–e) above, where appropriate.
18. Where the information prepared in accordance with paragraph 17 above indicates that the geological storage site no longer meets the requirements set out in paragraphs 4 and 5 above, the issuance of CERs shall cease.
19. Project participants shall account for any seepage that occurs during the crediting period(s) of a CCS project activity as project or leakage emissions in the calculation of the monitored reductions in anthropogenic emissions by sources of greenhouse gases that have occurred as a result of the registered CDM CCS project activity. Any seepage that occurs after the end of the last crediting period shall be quantified and reported in monitoring reports.
20. The monitoring of the geological storage site shall:
(a) Begin before injection activities commence, to ensure adequate time for the collection of any required baseline data;
(b) Be conducted at an appropriate frequency during and beyond the crediting period(s) of the proposed CCS project activity;
(c) Not be terminated earlier than 20 years after the end of the last crediting period of the CDM project activity or after the issuance of CERs has ceased, whichever occurs first;
(d) Only be terminated if no seepage has been observed at any time in the past 10 years and if all available evidence from observations and modelling indicates that the stored carbon dioxide will be completely isolated from the atmosphere in the long term. This may be demonstrated through the following evidence:
(i) History matching confirms that there is agreement between the numerical modelling of the carbon dioxide plume distribution in the geological storage site and the monitored behaviour of the carbon dioxide plume;
(ii) Numerical modelling and observations confirm that no future seepage can be expected from the geological storage site.
21. The project participant(s) liable for the geological storage site, or an entity that is under contract to the project participant(s), shall conduct the monitoring of the geological storage site unless and until the transfer of liability to the host Party is effected in accordance with section 11.bis.9 below.
11.bis.8 Requirements for financial provision
22. Project participants shall establish a financial provision that:
(a) Meets all obligations in accordance with the laws and regulations of the host Party arising from the establishment and operation of the proposed CCS project activity;
(b) Allows for the ongoing safe operation of the geological storage site in accordance with the laws and regulations of the host Party;
(c) Addresses the risk of project participant insolvency in accordance with the laws and regulations of the host Party;
(d) Offers a means of redress for affected communities and ecosystems in the event of seepage from a geological storage site of a CCS project activity in accordance with the laws and regulations of the host Party;
(e) Enables the host Party to discharge its obligations arising in connection with the transfer of liability.
23. The financial provision shall cover:
(a) The cost of ongoing monitoring, at an appropriate frequency, of the geological storage site and of verification and certification by a DOE for at least 20 years after the end of the last crediting period of the CCS project activity or after the issuance of CERs has ceased, whichever occurs first;
(b) In the event of seepage, the cost associated with the obligations set out in section 8.4 of the Project cycle procedure;
(c) The cost of any remedial measures required by laws and regulations of the host Party;
(d) Any other requirements determined by the host Party that are agreed at the time of the host Party approval and described in the PDD.
24. Project participants shall describe the type and amount of the financial provision and provide a detailed cost estimate for each of the requirements referred to in paragraph [23] above, including underlying assumptions and justifications.
25. The financial provision shall, in accordance with the laws and regulations of the host Party, be transferable to the host Party upon fulfilment of all obligations of the project participants in accordance with the CDM rules and requirements and the laws and regulations of the host Party, or upon insolvency of the project participant(s).
11.bis.9 Liability
26. Project participants shall clearly document in the PDD how the liability obligations arising from the proposed CCS project activity or its geological storage site are allocated during the operational phase, closure phase and post-closure phase.
27. Relevant provisions of laws and regulations of the host Party, including those referred to in section 11.bis.3 above, shall apply to matters related to liability.
28. During the operational phase and any time thereafter until a transfer of liability to the host Party has been effected in accordance with paragraph 299 below, liability shall reside with the project participants.
29. A transfer of liability from a project participant(s) to the host Party shall be effected after:
(a) The monitoring by the project participant of the geological storage site has been terminated in accordance with the conditions for such termination, as set out in section 11.bis.7 above;
(b) The host Party has established that the conditions set out by the DNA in its letter of approval, referred to in section 11.bis.3 above, and those set out in the relevant laws and regulations applicable to the geological storage site, have been complied with.
30. Project participants shall notify the Board in writing, through the relevant DNA, not less than six months before the transfer of liability is scheduled to occur.
11.bis.10 Environmental and socioeconomic impact assessments
31. The following applies instead of paragraphs [63 and 64] above [Project standard]: The project participants shall carry out comprehensive environmental and socioeconomic impact assessments in accordance with the laws and regulations of the host Party, including with regard to potential transboundary impacts, drawing upon the risk and safety assessment referred to in section 11.bis.6 above. Such assessments shall:
(a) Include a detailed description of the planned monitoring and remedial measures to address any environmental and socioeconomic impacts identified, and be compiled in accordance with procedures as required by the host Party;
(b) Analyse thoroughly and exhaustively air emissions (e.g. nitrogen oxides, sulphur oxides, dust, mercury, polycyclic aromatic hydrocarbons), solid waste generation, and water use associated with current CCS technologies;
(c) Be conducted applying the best available techniques in order to facilitate a high level of protection for the environment as a whole and for communities;
(d) Include at least a comprehensive analysis of the environmental and socioeconomic impacts including consideration of the potential impacts of carbon dioxide storage on potable water supply.
32. Project participants shall provide a detailed summary of the environmental and socioeconomic impact assessment and provide references to all relevant supporting documents.
11.bis.11 Verification and certification
33. Project participants may select the time for the initial verification and certification of a CCS project activity by a DOE, taking into account that subsequent verification and certification reports shall be submitted by the DOE to the Executive Board not later than five years after the end of the previous verification period.
34. Verification and certification of a CCS project activity shall continue, in accordance with paragraph 30 above, beyond the end of the last crediting period by the DOE appointed by project participants and until such time as the monitoring of the geological storage site has been terminated in accordance with the conditions for the termination of monitoring, as set out in paragraph 20 above.
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Document information
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4 April 2014 |
EB 78, Annex 3 Initial adoption. This amendment includes provisions related to carbon dioxide capture and storage. |
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Decision Class: Regulatory |
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[1]As per paragraphs 10 and 41 of decision 5/CMP.8; the CMP decided that the eligibility of these types of project activities shall be considered by the Subsidiary Body for Scientific and Technological Advice at its forty-fifth session, and also decided that although these types of project activities would merit inclusion under the CDM, more practical experience of carbon dioxide capture and storage project activities in geological formations under the CDM would be beneficial.