KEY LEGAL AND REGULATORY CONSIDERATIONS FOR THE

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GEOSEQUESTRATION OF CARBON DIOXIDE IN AUSTRALIA

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Australian Minister for Industry, Department of Innovation, Industry, Science

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and Research

Geosequestration involves the capture (from power stations and other facilities) and storage of

carbon dioxide for very long periods of time in underground geological formations. Although

commercially viable and proven geosequestration technology is not yet available, the Federal

Government’s continued commitment to fossil fuel resources as the mainstay of energy production

has increased interest in, and raised the profile of, using geosequestration as a greenhouse gas

abatement measure in Australia.

Aside from the Barrow Island Act 2003 (WA) (which was enacted in respect of the Gorgon project

off the northwest coast of Western Australia), there is no legislation in Australia that specifically

governs geosequestration of carbon dioxide and the issues of responsibility and liability for

sequestered gas. The States, Territories and the Commonwealth have been working on these issues

through the Ministerial Council on Mineral and Petroleum Resources and in international fora, but

the position is uncertain and evolving.

In the absence of legislative reform, there are many regulations that are likely impact on a

geosequestration project in Australia. The main sources of responsibility in relation to

geosequestration will be environmental legislation and duties and standards of care imposed by the

common law. However, a variety of other legislation and international laws are relevant.

Any reform proposals will require careful consideration (with appropriate input from industry,

community groups and others) to ensure that they are aimed not only at protecting the public but

also at striking the right balance between encouraging investment in geosequestration technologies

on the one hand while not hindering investment in other methods of reducing carbon dioxide

emissions on the other.

In order to get the balance right, those involved in any reform process will need to clearly

understand the existing sources of liability and responsibility associated with geosequestration.