Consultation on the proposed Offshore Carbon Dioxide Storage licensing regime

This consultation was launched by DECC in order to seek views on a proposed framework for the transposition of the EU CCS Directive into UK law. The framework was based on the provisions of the Energy Act 2008 and included: draft regulations to effectively transpose some provisions of the Directive; draft terms and conditions for offshore carbon storage licences; and a partial impact assessment of the cost to industry and the government of administering the proposed offshore carbon storage regime in the UK.

Following the response to the consultation, the UK Parliament adopted The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (See dedicated section above) in September 2010, which entered into force in October 2010.

These Regulations are enacted under the Energy Act 2008 and establish a permitting regime for offshore CCS activities in the territorial sea and gas importation and storage zones (GISZs) of England and Wales. Scotland will adopt a separate licensing framework for CCS operations undertaken in its territorial sea. The terms and conditions for the offshore carbon dioxide appraisal and storage licence are yet to be finalised.

The Regulations partially fulfil the UK's obligation to transpose the EU CCS Directive (/2009/31/EC) into UK domestic law. The regulations transpose: the requirements to be fulfilled for the granting of a storage licence and a storage permit by the Secretary of State and the scope of these permissions (Schedule 1 and 2); the information to be included in the public register; and, the obligations of the storage operator and financial security requirements.

Useful Links: