2024年?yáng)|盟二氧化碳跨境運(yùn)輸?shù)臋C(jī)遇與挑戰(zhàn) 推動(dòng)CCS邁向凈零排放未來(lái)報(bào)告（英）

?ACE2024

Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortransmittedinanyformbyanymeans,electronicormechanical,withoutpriorwrittennoticetoandpermissionfromACE.

Publishedby:

ASEANCentreforEnergy

SoemantriBrodjonegoroIIBuilding,6thfl.DirectorateGeneralofElectricity

Jl.HR.RasunaSaidBlockX-2,Kav.07-08Jakarta12950,Indonesia

Tel:(62-21)5279332|Fax:(62-21)5279350E-mail:secretariat@

Disclaimer

Thispublicationandthematerialfeaturedhereinareprovided“asis”.

AllreasonableprecautionshavebeentakenbytheASEANCentreforEnergy(ACE)toverifythereliabilityofthematerialfeaturedinthispublication.NeitherACEnoranyofitsofficials,consultants,dataorotherthird-partycontentprovidersorlicensorsprovidesanywarranty,includingastotheaccuracy,completeness,orfitnessforaparticularpurposeoruseofsuchmaterial,orregardingthenon-infringementofthird-partyrights,andtheyacceptnoresponsibilityorliabilitywithregardtotheuseofthispublicationandthematerialsfeaturedtherein.TheASEANMemberStates(AMS)ortheindividualsandinstitutionsthatcontributedtothisreportarenotresponsibleforanyopinionsorjudgementsthereportcontains.Theinformationcontainedhereindoesnotnecessarilyrepresenttheviews,opinionsorjudgementsoftheAMSoroftheindividualsandinstitutionsthatcontributedtothisreport,norisitanendorsementofanyproject,productorserviceprovider.ThedesignationsemployedandthepresentationofmaterialhereindonotimplytheexpressionofanyopiniononthepartofACEconcerningthelegalstatusofanyregion,country,territory,cityorareaorofitsauthorities,orconcerningthedelimitationoffrontiersorboundaries.

2

AboutACEandJOGMEC

ASEANCentreforEnergy(ACE)

EstablishedinJanuary1999,theASEANCentreforEnergy(ACE)isanintergovernmentalorganisationthatrepresentsthe10ASEANMemberStates’(AMS)interestsintheenergysector.TheCentreservesasacatalystfortheeconomicgrowthandintegrationoftheASEANregionbyinitiatingandfacilitatingmultilateralcollaborationsaswellasjointandcollectiveactivitiesrelatingtoenergy.ItisguidedbyaGoverningCouncilcomposedofSeniorEnergyOfficialsfromeachAMSandarepresentativefromtheASEANSecretariatasanex-officiomember.HostedbytheMinistryofEnergyandMineralResourcesofIndonesia,ACE’sofficeislocatedinJakarta.

JapanOrganizationforMetalsandEnergySecurity(JOGMEC)

TheJapanOrganizationforMetalsandEnergySecurity(JOGMEC)wasenhancedtoadditionallycovertheareasofCCS/CCUS,hydrogenandwindpowerwiththefunctionsoftheJapanOil,GasMetalsNationalCorporation(also,JOGMEC)on14November2022.JOGMECwasestablishedon29February2004pursuanttotheLawConcerningtheJapanOil,GasandMetalsNationalCorporation,whichwaspromulgatedon26July2002.Duringthisperiod,JOGMECintegratesthefunctionsoftheformerJapanNationalOilCorporation,whichwasinchargeofsecuringastablesupplyofoilandnaturalgas,andtheformerMetalMiningAgencyofJapan,whichwasinchargeofensuringastablesupplyofnonferrousmetalandmineralresourcesandimplementingminepollutioncontrolmeasures.

3

Acknowledgements

Thisjointresearchpaper,titled“OpportunitiesandChallengesforCO2Cross-BorderTransportationinASEANforAdvancingCCSTowardsaNetZeroFuture”wasdevelopedbytheASEANCentreforEnergy(ACE)withthesupportoftheJapanOrganizationforMetalsandEnergySecurity(JOGMEC),incollaborationwithnationalexpertsfromASEANMemberStates(AMS),withMitsubishiResearchInstitute,Inc(MRI)asaconsultant.

WeextendourgratitudetonationalexpertsfromIndonesia,Malaysia,ThailandandVietNamfortheirinvaluablecontributions.FromIndonesia,werecognisethecontributionsoftheMinistryofEnergyandMineralResources-DirectorateGeneralofOilandGas,theMinistryofEnvironmentandForestryandfromPTPertamina(Persero).FromMalaysia,weacknowledgetheMinistryofEnergyTransitionandWaterTransformation,theMinistryofEconomy-EconomicDivisionofEnvironmentandNaturalResources,MalaysiaPetroleumResourcesCorporation,andtheMinistryofNaturalResourcesandEnvironmentalSustainability.OurpartnersinThailandincludedtheNationalEnergyTechnologyCenter(ENTEC),ThailandGreenhouseGasManagementOrganization,PTTEPThailandandChulalongkornUniversity.FromVietNam,wearegratefulforthesupportfromPetrovietnamandtheMinistryofIndustryandTrade.

OverallguidancewasprovidedbyDrNukiAgyaUtama,ExecutiveDirectorofACE.ThisreportwasdirectedbyBeniSuryadi,ManagerofACEandwrittenbyauthors,AldillaNoorRakhiemah,SeniorResearchAnalystofACE,andTetsuyaNomoto,onsecondmenttoACE-MRICollaboration.ItwasreviewedbythePower,FossilFuel,AlternativeEnergyandStorage(PFS)team,comprisingSuwanto,ChaedarIndraPramanaandShaniaEsmeraldaManaloe.ThepublicationwasledbytheCommunicationsteam,RindaRufaidah,anddesignedbyRumayshaAliffiShanika.

ACEandJOGMEChaveahistoryofsuccessfulcollaboration,exemplifiedbytheirjointworkontheOilStockpilingRoadMap(OSRM),whichfocusedoncapacitybuildingandtechnicalstudiestailoredtothespecificneedsoftheAMS.InApril2021,JOGMECtookasignificantstepforwardwiththeformulationofthe“JOGMECCarbonNeutralInitiative.”Thisinitiativeisanchoredinthreekeypolicies:“Strengtheningeffortsforcleanresourcesandenergy,”“Strengtheningeffortsfordecarbonisedfuelsandtechnology,”and“Contributingtothedevelopmentofsystemsnecessaryfordecarbonisation.”

4

Acknowledgements

ThisstrategicdirectionofJOGMEC,alignedwithACE'sUnderActionPlan1.3and1.4ofCCT,ACEistaskedwith

commitmenttoenergysustainabilityinthedevelopingastrategiccoalreportandconductingstudies

region,emphasisestheimportanceofadvancingCarbontoexplorethepotentialofCCTandCCS/CCUS(carbon

CaptureandStorage(CCS)technologiesincapture,utilisationandstorage)forpromotingalowcarbon

ASEAN’sjourneytowardsanetzeroenergysystem.Additionally,ACEisresponsiblefor

future.RecognisingJOGMEC’sdedicatedeffortsincarbondevelopingandimplementingaroadmapforthe

neutralityandthecriticalroleofCCSinmeetingASEAN’sdeploymentofCCTandCCS/CCUSinASEAN.These

carbon-neutraltargets,itbecomesincreasinglyclearthatactionplansaredesignedtopromotetheroleofCCTand

acollaborativeapproachbetweenACEandJOGMECisnotCCS/CCUSinfacilitatingtheenergytransitionand

justbeneficialbutindispensable.advancingtowardsalow-carboneconomy.Theeffective

useofthesetechnologies,asoutlinedintheactionplans,

ByworkingtogetheronCCSinitiatives,theseorganisationsincludesenablingcross-borderCO2transboundary

cansignificantlycontributetotheregion'ssustainablemovementwithintheASEANregion,whichisessentialfor

energytransition,leveragingtheirrespectivestrengthsandregionaldecarbonisationinitiatives.

expertiseinthepursuitofagreener,moresustainableASEAN.

Therefore,thisjointstudyisanefforttowardsdecarbonisationinASEANwithaglobalperspective.Itisinlinewiththeregion’scollectiveeffortforenergycooperation,undertheASEANPlanofActionforEnergyCooperation(APAEC)PhaseII:2021-2025(ADC,2020).AccordingtoAPAEC,coalandcleancoaltechnology(CCT)isoneofthekeyprogrammeareasinachievingtheregionalaspirationaltargetsforGHGemissionsreduction.

5

TableofContent

6

ProjectScopeandObjective

Thescopeandobjectivesofthisprojectarefocusedonadvancingthedecarbonisationofenergy-intensiveandhard-to-abateindustrialsectorsinSoutheastAsia,withaspecificfocusonIndonesia,Malaysia,ThailandandVietNam.

Thisisvitalforachievingalow-carbonenergysystemalignedwiththeregion'senergytransitionandnetzeroaspirations.Thisstudyspecificallyaimstoreviewandanalysetheregulatoryframeworkforcarboncaptureandstorage(CCS)andcross-boundaryCO2transportwithinASEAN.

Toensurethattheproject'soutcomesarebothmeasurableandspecific,itsdeliverablesareoutlinedasfollows:

CO2.ItalsoreviewspotentialchallengesandopportunitiesforCO2cross-bordertransportinASEAN.

Itisimportanttonotewithinthisproject’sscopethatthereportfocusesspecificallyonaspectsrelatedtoCCS.WhilethestudyprovidesanexaminationofpoliciesandregulatoryframeworksassociatedwithCCSinSoutheastAsia,itdoesnotofferacomprehensivereportandanalysisofbroaderenvironmental,economicorpoliticalchallengesandgaps.Theanalysisisconfinedtoelementsdirectlyrelevanttotheimplementation,regulationandadvancementofCCStechnologiesandpractices,andcross-boundaryCO2transportwithinthecontextofthesetechnologies.

1.ReviewofExistingPoliciesandRegulatoryFrameworksinKeyASEANCountries:ThiswillinvolveexaminingthecurrentpoliciesandregulationsrelatedtoCCSinkeySoutheastAsiancountries,namelyIndonesia,Malaysia,ThailandandVietNam.

2.ReviewofchallengesandopportunitiesofCO2cross-bordertransportationintheASEANregion:Thisstudyidentifiesspecificcompliancerequirementsnecessaryfortheeffectiveandlawfulcross-bordertransportof

7

Chapter1:

Introduction

8

CurrentandProjectedEnergy

LandscapeinSoutheastAsia(1/2)

TheIntergovernmentalPanelonClimateChange(IPCC)initsSynthesisoftheSixthAssessmentReport(AR6)highlightedtheincreasingneedforrapidandstringentcutsinCO2andothergreenhousegasemissionsinthecomingdecadetokeeptheglobaltemperaturefrombreachingthe1.5。Cand2。CwarminglimitsestablishedintheParisAgreement(IPCC).Globaleffortstoachievenetzeroemissionsareessentialtoreducetherateofunprecedentedwarming,especiallyinregionsexperiencingrobustenergydemandgrowthandcontinuedheavyrelianceonfossilfuels.

Projectedasasignificantcontributortoglobaleconomicgrowth,SoutheastAsianeconomieswereexpectedtogrowbyanaverageof4.6%in2023and4.8%in2024,accordingtotheAsianDevelopmentBank(ADB,2023).Inlinewiththiseconomicexpansion,theregion'senergydemandisanticipatedtoincreasecorrespondingly.The7thASEANEnergyOutlook(ACE,2022)predictsthatby2030,theregion'senergydemandwillsurgebyapproximately30%,andby2050,itwillhaveincreasedby170%relativeto2020levels(Figure1).Thistrendimpliesanaverageannualenergydemandgrowthrateofabout3.4%throughouttheregion,continuinguntilthemid-21stcentury.

AbreakdownoftotalenergydemandbyfueltyperevealsthatfossilfuelscontinuetodominateinASEAN(Figure2).Withtherisingenergydemandcoupledwiththisdependencyonfossilfuels,GHGemissionsintheregionareprojectedtoreach2,471MtCO2-eqby2025,withtheelectricityandtransportationsectorscontributingthelargestsharethrough2050.In2025,electricitygenerationaloneisexpectedtoaccountforabout51%oftotalGHGemissionsfromenergyconsumption.Withoutsignificantreductionsintheseemissions,theAMSfaceheightenedrisksofsevereclimatechangeimpacts,includingdroughts,floodsandtyphoons.ThePhilippinesranksfirstintermsofthenumberofpeopleaffectedbynaturalhazards,followedcloselybyThailandandVietNam.

Thisincreasingenergydemandemphasisestheneedforabalancedapproachthataddressesthetripledemandsofenergy:ensuringenergysecurity,promotingeconomicgrowthandpursuingenvironmentalsustainability.Thisapproachisessentialfortheregionnotonlytomanageitsenergyandeconomicaspirationsbutalsotomitigateenvironmentalrisksandmeetglobalclimatetargets.

9

CurrentandProjectedEnergy

LandscapeinSoutheastAsia(2/2)

Figure1:TotalenergydemandinSoutheastAsiabycountryinMtoe

Figure2:TotalfinalenergydemandinSoutheastAsiabyfuelinMtoe

2.000

1.500

1.000

500

0

2020

2025

2030

2035

2040

2045

2050

BruneiDarussalam

CambodiaIndonesiaLaoPDR

Malaysia

MyanmarPhilippinesSingaporeThailand

Vietnam

1.5001.200 900 600 3000

Baseline

2020

Baseline

ATS

APS

LCO

2025

Baseline

ATS

APS

LCO

2040

Baseline

ATS

APS

LCO

2050

CoalOil

NaturalGasBioenergyTraditionalBiomassOtherHeatElectricity

Source:ACE,‘The7thASEANEnergyOutlook’,2022

10

TheImportanceofCSSinAchievingNet-ZeroTarget

Figure3:ASEANMemberStates'commitmenttonetzeroorcarbonneutrality

Source:UNFCCC,“NDCRegistry”,2024

TheincreasinglikelihoodofnaturalhazardsexacerbatedbyclimatechangepushestheAMStomovebeyondmerelyconsideringGHGemissionreductionstoactivelyimplementingthem.MostoftheAMShavepledgedtoachievecarbonneutralityornetzeroemissions(Figure3)throughtheadoptionofadvancedandcleanertechnologiesintheenergysector,includingcarboncaptureandstorage(CCS).

AsmembercountriesalignwiththeParisAgreement'sambitiousclimategoals,CCSemergesasacriticalsolution,especiallyinindustrieswhereemissionreductionsarenotoriouslychallenging.Thisincludessectorslikecement,steelandchemicals,whereemissionsareinherentlylinkedtoindustrialprocessesandhigh-temperatureoperations.Additionally,CCSisinvaluableinenhancingthesustainabilityofthermalpowerplants,whichisessentialforensuringastablepowersupply.Thistechnologynotonlycontributesto

climatechangemitigation,italsosupportsarealistictransitiontowardsalow-carboneconomy,balancingenvironmentalobjectiveswiththedevelopmentalneedsoftheASEANregion.

Inthisevolvinglandscape,CCShasbecomeindispensableforachievingnetzero.Theurgencyofitsimplementationhasshiftedfromadistantfutureobjectivetotheimmediatepresent.Asaresult,thereisanotableincreaseinthenumberofprojectsexploringtheadoptionofCCSintheregion.Alongsidethis,regulatoryframeworksarebeingactivelydevelopedtofacilitateandgovernthedeploymentofthesetechnologieseffectively.Thisproactiveapproachnotonlyacceleratesprogresstowardnetzerobutalsoreflectsacommitmenttosustainabledevelopmentinthefaceofglobalclimatechallenges.

11

TheRoleofCross-borderCO2TransportinSoutheastAsia

ASEANrecognisestheessentialroleofCCSandCCUStechnologiesintheirpathwaystoachievingnetzerotargets.InIndonesia’sLong-TermStrategyforLowCarbonandClimateResilience2050(

UNFCCC,2021

),thecountryplanstointegrateCCS/CCUSwithinitsenergysystems.Specifically,Indonesiaaimstoretrofitapproximately76%ofitscoalpowerplantswithCCSandCCUStechnologyby2050.GHGemissionsareprojectedtodeclinefrom1,030MtofCO2eqin2030toaround572MtofCO2eqin2050,undertheLowCarbonScenarioCompatiblewithParisAgreement(LCCP)whereCCS/CCUShavebeenlargelyimplemented.Similarly,inthelatestNet-zeroEnergyTransitionRoadmap(NETR),MalaysiahasalsoincludedplanstoutiliseCCUSintheenergysectortoattainthenation’snetzeroemissiontarget(Malaysia

’sMoE,2023

).UndertheMinistryofEconomy,thedevelopmentofregulatoryframeworkstofacilitatetheimplementationofCCUSprojectshasbeenplanned,asCCUSplaysacrucialroleinachievingnetzeroGHGemissions.

AlthoughcountrieshavespecifiedtheimplementationofCCSandCCUSintheirrespectiveenergyplans,therearesomelimitationsinfullyimplementingthesetechnologies,forinstance,theregulationtoallowtransboundarytransportofCO2inASEAN.

ThenecessityforadvancedcarboncapturetechnologiesandcarbonstorageintheASEANregionishighlightedbythecurrentlimiteddevelopmentintheseareas,emphasisingtheneedfortransboundaryCO2transport.TheUN’sInternationalMaritime

Organisation

(IMO

)hasopenedthedoorforsuchcross-borderCO2movement,allowingforCCSundertheLondonProtocol,whichlaysthelegalgroundworkforgovernmentstopermitCCSbeneaththeseabed.ThisdevelopmenthighlightstheimportanceofestablishingrobustregulatoryframeworksamongtheAMStoaddressthechallengesofCO2transboundarymovementintheregion,markingasignificantsteptowardsthepracticalimplementationofCCSandCCUS.

Cross-borderCO2transportiscrucialforadvancingCCSinASEANbecauseitallowscountrieswithsignificantCO2emissionsbutlimitedgeologicalstoragecapacitiestotransportCO2toregionswithamplestorage.Inthiscontext,IndonesiaandMalaysiaareemergingaspivotalCO2storagehubswithintheASEANregions

(BIMP-EAGA

,2023).TheirpotentialtoleveragethevastquantitiesofCO2storagecapacitypresentsauniqueopportunity.ThisstrategicpositioningnotonlyaidsinregionalcarbonmanagementeffortsbutalsosignifiesthegrowingimportanceofcollaborativeeffortsinASEANcountriestoaddressglobalclimatechangechallengesthroughinnovativecarboncaptureandstoragesolutions.TheabilitytomoveCO2acrossbordersisessentialforoptimisingthelocationofcapturefacilitiesandstoragesites,therebyenhancingtheefficiencyandfeasibilityoftheCCSvaluechainacrosstheregion.

12

WhyASEANNeedsCO2CrossBorderTransport

RealiseNetZerotarget

?MostoftheAMShavecommittedtocarbonneutralornetzeroemissions.

?AsmembercountriesalignwiththeParisAgreement'sambitiousclimategoals,CCSemergesasacriticalsolution,especiallyinindustrieswhereemissionreductionsarenotoriouslychallenging.

AdvancingCCS

?AlthoughcountrieshaveplannedtheimplementationofCCSasspecifiedinthecountries’respectiveenergyplans,therearesomelimitationsinfullyimplementingCCS,forinstance,theregulationtoallowtransboundarytransportofCO2inASEAN.

2

SupportingRegionalBlueprint

?Thisinitiativesupportstheregion’scollectiveeffortstowardsenergycooperation,undertheASEANPlanofActionforEnergyCooperation(APAEC)PhaseII:2021-2025,ProgrammeAreaNo.3–CoalandCleanCoalTechnology,specificallyfocusingonOBS1,ActionPlan1.3.ThisplaninvolvesthedevelopmentofaStrategicCoalReportandstudiestoexplorethepotentialofCCTandCCUSinpromotingalow-carbonenergysystem.

CO2StorageHub

?IndonesiaandMalaysiaareemergingaspivotalCO2storagehubswithintheASEANregion

(BIMP-EAGA

).TheirpotentialtoleveragethevastquantitiesofCO2storagecapacitypresentsauniqueopportunity.

?Sucheffortsarealsoimportantforfuturedecarbonisationfromaglobalperspective.

13

Chapter2:

ReviewofRegulatory

FrameworkforCCSinASEANasaToolTowardsNetZero

14

SummaryofCCS-SpecificPolicies,Laws,RegulationsandProjectsinSelectedASEANCountries

Indonesia

Malaysia

Thailand

Vietnam

InternationalClimateChangeCommitment

√

√

√

√

NetZeroTarget

√

√

√

√

PartytotheLondonProtocol

×

×

×

×

CCS-specificdomesticpoliciesorincentives

√

√

√

×

CCSproject(s)proposed/indevelopment

√

√

√

×

CCSspecificlegalandregulatoryframework

√

√

(onestate)

×

×

ExistinglegislationapplicabletoCCSoperations

√

√

√

√

15

CurrentStatusofCCSPoliciesinIndonesia

16

Indonesia:CCS-relatedPolicyandRegulatoryFramework

[Target]ReducingGHGemissionsby31.89%relativetotheBAUscenarioby2030andaconditionalreductionof43.2%withinternationalsupport.TheNDCtargetsectorsareenergy,waste,IPPU,agriculture,andFOLU.

?TheNDConlymentionedCO2captureinthepetrochemical(especiallyammoniaproduction)andsteel&Ironsectors.

NDC

CCS-relatedPolicy

CCS-specificIncentives

CCS-specificLegalandRegulatoryFramework

IndonesiaLong-TermStrategyforLowCarbonandClimateResilience2050

?Decarbonisethepowersectorby2050includingequippingmostcoalpowerplantswithCCSandbiomassco-firingincoalpowerplantsconnectedtoCCS(BECCS).

IndonesianMinistryofEnergyandMineralResources’(MEMR)RoadmaptoNetZeroEmissionsby2060intheEnergySector

?Roadmapaimsforthecaptureof6Mt-CO2onwardsfrom2030,withtheultimategoalof

190Mt-CO2in2060.

?Thenewpresidentialregulationno14of2024mentionedabouttheplantoprovidetaxandnon-taxincentivesforCCS

?MEMRRegulationNo.2of2023ontheimplementationofCCUSforoffshoreoilandgasbusinessactivities.

?PresidentialRegulationNo.14/2024ontheorganisationofCCSactivitiestosupportemissionreductionsfromotherindustriesandcross-borderCO2transportation.

17

Indonesia:KeyRegulatoryFrameworkforRealisationofCCS

RegulatoryFramework

Overview

CCS-relatedRegulations

MinistryofEnergy&MineralResources

Regulation2/2023

?RegulatesCCSandCCUSimplementationinupstreamoilandgasactivities,includingtheenforcement,implementation,monitoring,Measurement,Reporting&Verification(MRV),andeconomicprovisions.

PresidentialRegulation14/2024

?ProvidesabroadnationalframeworkofCCSinIndonesia,establishinggenerallegal,environmentalandoperationalguidelines.

?ItalsosetsouttheoverarchingpolicyandincentivesforCCS,includingcross-bordercooperation.

TechnicalStandardsforCCSOperation

?PublishedoftechnicalstandardsadoptingISO/TC265:(focusingongeologicalstorage)

SNIISO27914:2017Carbondioxidecapture,transportationandgeologicalstorage.

SNIISO/TR27915:2017Carbondioxidecapture,transportationandgeologicalstorageQuantificationandverification.

SNIISO/TR27923:2022Carboncapture,transportationandgeologicalstorage–

Injectionoperations,infrastructureandmonitoring.

SNIISO/TR27918:2018LifecycleriskmanagementforintegratedCCSprojects.

SKKMigasWorking

GuidelineNo.PTK-

070/SKKIA0000/2024/S9

?GuidelineonCCS/CCUSforoilandgasupstreamactivitiesinalignmentwithotherregulationssuchasMEMRregulation,carboneconomicvalue,MRV,etc.

?WorkingProceduralGuidelineofCCS/CCUSonWorkingAreasofCooperationContractContractorsinoilandgasupstreamactivitiesinalignmentwithMEMRregulation.

18

Indonesia:KeyRegulatoryFrameworkforRealisationofCCS

RegulatoryFramework

Overview

CCS-relatedIncentives

PresidentialRegulationonCarbonPricing

98/2021

?RegulatescarbonpricingtoachieveNDC,includesthepriceadministration,transparencyframework,andguidanceonfinancing.

MinistryofEnergy&MineralResourcesRegulation16/2022

?GHGemissionsreportingmechanismforpowerplants.

?GHGemissionscapforcoal-firedpowerplants.

?Carbontrademechanism.

?Evaluationofcarbontradingandtechnicalemissionsapprovalauctionmechanismforpowerplants.

FinancialService

Authority(OJK)

Regulation14/2023

?GuidelinesandareferenceforCarbonTradingthroughtheCarbonExchangebymarketoperators.

?ReferenceforOJKincarryingoutitsregulatory,supervisoryfunctions,andcoordinationwithrelevantgovernmentministries/agencies.

Source:Authors’analysisofdifferentregulations

19

RegulatoryFrameworkforCCSActivities:MEMRRegulationNo.2/2023CCUSintheO&GSector

?MEMRMinisterialRegulationNo.2/2023providesacomprehensiveregulatoryframeworkforCCUSactivitiesandincludesbothprojectoperatorandregulatorrolesandresponsibilities,approvalrequirements,andmonitoringandreportingobligations.

?CO2fromoutsideupstreamO&GispermissibleonlyforCCUSinordertoimproveoilandgas(O&G)productionthroughenhancedoilrecovery(EOR)andenhancedgasrecovery(EGR).

CAPTURE

?EmissionsfromUpstreamO&G

?EmissionsfromOtherIndustries(forCCUS)

?DirectAirCaptureCapture(DAC)

TRANSPORT

?Pipeline,Trucking,Shipping

?OtherTechnologies

INJECTION

?InjectionintoInjectionTargetZone

?Intheexploitationperiod

STORAGE

?O&GReservoir

?Non-ConventionalO&GReservoir

?SalineAquifers

?CoallayerfortheCBMactivity

UTILISATION

(CCUS)

?EnhancedOilRecovery(EOR)

?EnhancedGasRecovery(EGR)

?EnhancedCBMRecovery(ECBM)

ScopeinMEMRRegulationNo.2/2023FeaturesofMEMRRegulationNo.2/2023

TECHNICALASPECT

?Capture,Transport,Injection,Storageand

Monitoring,Measurement,Reporting&Verification(MRV).

?Basedonthereferencedstandard,good

engineeringpracticesandsitecharacteristics.

BUSINESSSCENARIO

?BasedonProduc