Regulatory Gaps And Challenges With Largescale CCUS Development: Disparity Between Advancements In CCS And CCU

Abstract

Carbon capture, utilization and storage (CCUS) technology is critical for
achieving climate goals and transitioning to a low-carbon economy. So, while
efficiency measures and renewable energy are important, CCUS will be essential
for decarbonizing hard-to-abate sectors and achieving net-zero emissions.
However, it is important to differentiate between two important terminologies
related to CCUS, namely, carbon, capture and storage (CCS) and carbon capture
and utilization (CCU). The regulatory framework to develop CCS is increasing
around the world, and Brazil recently advanced in this area with the enactment of
Law No. 14.993, which establishes specific regulations for CCS activities in the
country. However, the situation with CCU is quite different, as there is a critical
regulatory gap in developing CCU globally. The paper adopts the use of doctrinal
research and case study analysis. In so doing, it begins by outlining the
interrelation between CCUS, CCS, and CCU, as well as the primary legal and
financial barriers to their implementation. It proceeds to highlight the disparity
between advancements in the development of the different aspects of CCUS, and
adopts Brazil as a case study. The authors conclude with a set of recommendations
for policymakers. These include developing comprehensive legal and regulatory
frameworks, investing in research and development, promoting public awareness
and engagement, accessing financial challenges and funding opportunities, and
establishing technical committees to oversee implementation. They argue that
while addressing these legal and policy barriers is challenging, it is essential for
enabling large-scale CCUS deployment to meet climate goals.