Review Editors

Takahiko Hiraishi (Japan), José Domingos Miguez (Brazil)

Contents executive summary 365

9.1 Introduction 365

9.2 National greenhouse gas inventories 366

9.2.1 Revised 1996 IPCC Guidelines and IPCC Good Practice Guidance 366

9.2.2 Methodological framework for CO2 capture and storage systems in national greenhouse gas inventories 366

9.2.3 Monitoring, verification and uncertainties 371

9.3 Accounting issues 372

9.3.1 Uncertainty, non-permanence and discounting methodology 373

9.3.2 Accounting issues related to Kyoto mechanisms

9.4 Gaps in knowledge 378 References 378

EXECUTIVE SuMMARY

This chapter addresses how methodologies to estimate and report reduced or avoided greenhouse gas emissions from the main options for CO2 capture and storage (CCS) systems could be included in national greenhouse gas inventories, and in accounting schemes such as the Kyoto Protocol.

The IPCC Guidelines and Good Practice Guidance reports (GPG2000 and GPG-LULUCF) 'are used in preparing national inventories under the UNFCCC. These guidelines do not specifically address CO2 capture and storage, but the general framework and concepts could be applied for this purpose. The IPCC guidelines give guidance for reporting on annual emissions by gas and by sector. The amount of CO2 captured and stored can be measured, and could be reflected in the relevant sectors and categories producing the emissions, or in new categories created specifically for CO2 capture, transportation and storage in the reporting framework. In the first option, CCS would be treated as a mitigation measure and, for example, power plants with CO2 capture or use of decarbonized fuels would have lower emissions factors (kgCO2/kg fuel used) than conventional systems. In the second option, the captured and stored amounts would be reported as removals (sinks) for CO2. In both options, emissions from fossil fuel use due to the additional energy requirements in the capture, transportation and injection processes would be covered by current methodologies. But under the current framework, they would not be allocated to the CCS system.

Methodologies to estimate, monitor and report physical leakage from storage options would need to be developed. Some additional guidance specific to the systems would need to be given for fugitive emissions from capture, transportation and injection processes. Conceptually, a similar scheme could be used for mineral carbonation and industrial use of CO2. However, detailed methodologies would need to be developed for the specific processes.

Quantified commitments, emission trading or other similar mechanisms need clear rules and methodologies for accounting for emissions and removals. There are several challenges for the accounting frameworks. Firstly, there is a lack of knowledge about the rate of physical leakage from different storage options including possibilities for accidental releases over a very long time period (issues of permanence and liability). Secondly, there are the implications of the additional energy requirements of the options; and the issues of liability and economic leakage where CO2 capture and storage crosses the traditional accounting boundaries.

The literature on accounting for the potential impermanence of stored CO2 focuses on sequestration in the terrestrial biosphere. Although notably different from CCS in oceans or in geological reservoirs (with respect to ownership, the role of management, measurement and monitoring, expected rate of physical leakage; modes of potential physical leakage; and assignment of liability), there are similarities. Accounting approaches, such as discounting, the ton-year approach, and rented or temporary credits, are discussed. Ultimately, political processes will decide the value of temporary storage and allocation of responsibility for stored carbon. Precedents set by international agreements on sequestration in the terrestrial biosphere provide some guidance, but there are important differences that will have to be considered.

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