European regulatory and insurance aspects of carbon capture and storage

Abstract

Carbon capture, use and storage (CCUS) has the potential to significantly reduce carbon emissions, however, because CCUS technology almost exclusively aims for carbon mitigation without co-benefits, this expensive technology has not been widely adopted. In order to make this technology viable, a robust regulatory and legal regime is required both internationally and within the European Union (EU). A comprehensive insurance system is also required to ensure that efficient running of CCUS. With this understanding in mind, this article analyses the regulatory regime governing CCUS both internationally and in the EU and also the law governing insurance of this technology. It argues that whilst European regulation has improved with respect to filling regulatory gaps, a number of gaps are identified which still need to be closed. In addition, the article will argue that special insurance coverage for specialized risks must be in place to diminish any environmental impact and hazard, including cyber-related risks that need to be identified and insured to be properly handled and adequately covered to allow for the successful deployment of CCUS.