Implementing the OECD Framework for Industry’s Net‑zero Transition in Thailand

Annex L. Analysis of the key features of a comprehensive CCS legal and regulatory framework

Table A L.1. Dimensions to be covered for a comprehensive CCS legal and regulatory framework

Dimension	Key elements	Description / rationale
Defining the regulatory scope	Classification and purifying CO2	Provide relevant classifications of CO2 (e.g. as a waste, pollutant, commodity…), as well as the requirements or standards for CO2 streams.
	Ownership and title of CO2	Defining CO2 ownership along the CCUS value chain and over the life of a CCUS project.
Environmental reviews and permits	Environmental impact assessment	Applicable environmental protections and EIA requirements, including specific considerations for CO2 storage.
	Permits and authorisation	Application and issuance processes for CO2 injection and storage permits, any prerequisites for permitting and commencement of injection and any review, modification/cancellation and surrender mechanisms.
	Public engagement and consultation	Rights, obligations and mechanisms for public participation in CCUS activities, including by publication of proposals and permit registers, review and response processes, obligations to consider comments and avenues for legal or administrative challenge.
Enabling first mover projects	One-off legislation	Dedicated legislation for a specific CCUS project in the absence of an existing, comprehensive framework
	Preferential approaches and projects	Preferential development rights, including for CO2 storage exploration and development and special administrative and permitting arrangements for projects identified as being of strategic interest.
Ensuring safe and secure storage	Storage resource assessment	Regulation of the process to identify CO2 storage resources suitable for development, including regional screening, site screening, site selection, initial characterisation
	Ownership of pore space	Implications of legal ownership of subsurface geology, including pore space for CO2 storage, which differs between regions.
	Measurement, Monitoring and Verification (MMV) plans	Monitoring and reporting obligations with respect to establishing baselines and identifying irregularities and any requirements for independent verification of data
	Storage site inspection	Inspection provisions, including mechanisms for authorising inspectors, inspector access rights and operator obligations to allow access and share information.
	Operational liabilities and financial security	Allocation of liability and obligation to post financial security, for damage or loss that occurs prior to any post-closure permit surrender or transfer of liability and any regulator step-in and cost recovery mechanisms.
	Site closure process	The process for site decommissioning and closure, including conditions to be met prior to closure, obligations to plug wells, remove surface infrastructure and monitor stored CO2, mechanisms for release of any financial security and compliance certification mechanisms.
Addressing long-term storage liabilities	Long term liability post site closure	Arrangements (if any) for the transfer to the state or relevant authority of liability in respect of a closed CO2 storage site and/or injected CO2, including any preconditions, any post-closure period that must elapse prior to the transfer and any liability retained by operator.
	Financial assurance of long-term side stewardship	Mechanisms under which operators are required to contribute financially to the costs of long-term site stewardship of a CO2 storage site following any site closure.
International and transboundary issues	Regulating cross-border CO2 transport	Captured CO2 can move across one or more jurisdictions, which may trigger certain national or international regulatory requirements.
	Compliance with the London protocol	Obligations and requirements for cross-border transport of CO2 under the London Protocol and the 2019 Resolution for Provisional Application of the 2009 CCS Export Amendment.
	Interaction with pressure fronts across international borders	Interaction of subsurface geology, specifically pressure fronts in large CO2 storage formations, occurring across jurisdictional boundaries.
	Overlap between multiple frameworks	Potential overlap between multiple regulatory frameworks, for example where projects outside the United States are credited under California’s Low Carbon Fuel Standard with specific regulatory requirements.
Facilitating CCS hubs	Access to shared transport infrastructure	Obligations or arrangements to allow third-party access to CO2 transport infrastructure, including any right to refuse access and relevant compensation and dispute resolution mechanisms.
	Facilitating shared storage infrastructure	Obligations or arrangements to allow third-party access to storage sites, including any right to refuse access and relevant compensation and dispute resolution mechanisms.
Other key and emerging issues	Treatment of CO2 removal technologies	Treatment of CO2 removal technologies, such as DAC, within existing and future legal and regulatory frameworks.
	Interaction with other surface and subsurface resources	Interaction of CCUS projects – and storage infrastructure in particular – with other subsurface and surface resources, such as oil and gas activities and offshore wind.
	Transitioning from CO2 EOR (enhanced oil recovery) to dedicated storage	Regulatory considerations for transitioning CO2-EOR operations to dedicated CO2 storage.

Source: Authors based on (IEA, 2022[1]; ASEAN Centre for Energy, 2024[2])

References

[2] ASEAN Centre for Energy (2024), ASEAN CCS Deployment Framework and Roadmap, https://aseanenergy.org/wp-content/uploads/2024/09/ASEAN-CCS-Deployment-Framework-and-Roadmap.pdf.

[1] IEA (2022), Legal and Regulatory Frameworks for CCUS, https://iea.blob.core.windows.net/assets/bda8c2b2-2b9c-4010-ab56-b941dc8d0635/LegalandRegulatoryFrameworksforCCUS-AnIEACCUSHandbook.pdf.