Inclusion of CCS Projects in EUETS

1. Inclusion of CCS Projects in EUETS • Informal ETG group (including participation from CCSA members) has met twice to consider inclusion of CCS projects in Directive review • Draft report has been circulated for comment - intention to circulate final draft w/c 26th Feb with further meeting on 2nd March to finalise paper. • Paper will be circulated to WG8 following today’s meeting

2. Draft conclusions of paper • CCS projects should be explicitly recognised in the Directive for Phase III , • 3 options for treatment of CCS in the directive were discussed • A permit for the complete CCS chain (as a single installation) is considered to be unworkable for Phase III. • The two alternative options for treatment of CCS plants could be considered further; both are likely to require changes to the Directive that will need to be considered in the review process • Using separate permits to cover individual parts of the CCS chain would require changes to the current definitions of installations and inclusion of further activities (which would need to be defined) in Annex I of the Directive • A system that allocates credits for the amount of CO2 captured would need a fundamentally different approach to that currently adopted in the Directive.