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28. Title: ENDS Europe Daily Headline: Durban: path cleared for including CCS in CDM Date: 08/12/2011 Kyoto carbon credits from carbon capture and storage (CCS) projects in developing countries will soon become a reality after international climate negotiators in Durban agreed on implementation modalities and other outstanding issues. A final text has yet to appear but the negotiators were jubilant over the breakthrough. Carbon capture’s inclusion in Kyoto’s clean development mechanism (CDM) was agreed in Cancún but only on condition a list of specific issues could be resolved. A key issue was liability and who should bear responsibility for the stored CO2. According to sources, it was agreed developers will be liable during the projects’ crediting period. Liability then will be transfer onto host countries 20 years after that. But Iris Cheng of Greenpeace said it was unfair to make countries liable for projects that they have not benefited

from, she said. If there is transfer of liability, it should be 20 years from site closure and not from the end of the crediting period, she added. “If ministers approve CCS in the CDM, then the fossil fuel industry will have won in Durban,” Ms Cheng continued. “Carbon capture and storage projects will lock the world more firmly in fossil fuel dependency as it will justify building new coal plans”. Eric Drosin of the Zero Emissions Platform (ZEP) welcomed the deal, saying developing nations will now be able to set up CCS projects under the CDM. The decision also sets a precedent for the inclusion of CCS in other funding mechanisms for low-carbon initiatives. The liability regime envisaged at the Durban meeting closely resembles rules laid out by the EU’s 2009 CCS directive, said one negotiator. Further details of the agreement are expected to emerge late on Thursday evening, when a final text is due to be published.

29. Title: Point Carbon Headline: EU to keep unclaimed CCS cash - EC Date: 08/12/2011 The European Commission said Thursday that cash destined for Vattenfall’s carbon capture and storage (CCS) project will be absorbed back into EU coffers rather than allocated to another project, diverting funds from the technology seen as vital if the EU is to meet it emission reduction goals. The Commission had granted Vattenfall’s CCS project at its Janschwalde coal-fired power plant in Germany 180 million euros in 2009 as a part of the 1 billion euro EU Energy Programme for Recovery scheme to help fund the fledgling technology. Earlier this week the company abandoned its plans to proceed with the project, citing delays in Germany’s CCS law. But the EC told Point Carbon News in an email that funds allocated to the project would not be re-directed to other CCS projects, even though a reserve list of schemes was in place. “The reserve list was set up only until the European Commission finally took the grant decision for the six CCS demonstration projects. All six grant agreements were

signed with the beneficiaries in 2010. The reserve list was closed,” said Marlene Holzner, a Commission spokesperson. The Commission said Vattenfall had received around 30 percent of its allocated cash, meaning some 126 million euros will be lost from the scheme. Meanwhile lobbyists in favour of carbon capture voiced their disappointment at the EC’s decision to retain the funding. “If the EU is going to deliver on its (emission reduction) targets it needs to ensure it has a successful CCS demonstration programme and with this capital intensive technology every penny counts,” said Eric Drosin, director of communications at Zero Emissions Platform, which acts as an adviser to the European Commission. The EU had earmarked CCS technology as a vital tool in ensuing the bloc reaches its goal to slash emissions by 50 percent by 2050. In a bid to achieve this, EU officials launched the world’s largest funding programme for CCS, promising to finance up to half the cost of at least eight demonstration plants.

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Communications Report 2011