After 4 or 5 years of deadlock at the annual UNFCCC conferences, the draft text for modalities and procedures of including carbon capture and storage (CCS) in the Clean Development Mechanism has just passed at the UNFCCC COP-17 in Durban, South Africa.

This passage means that CCS will now be eligible as a project activity. Whilst this may not be immediately utilized, it provides an important additional funding mechanism for projects set in developing countries, and also sets an important precedent for CCS being included in other mechanisms such as the Technology Mechanism and Green Climate Fund.

The text was passed without major compromise on the key issues of long-term liability, and a reserve fund of CDM credits to cover any net removals from projects. Under long-term liability, the host country will decide at the project’s inception whether to take liability or place it with the buyer of the certified emission reductions (CERs). Maintaining host country liability was key for the CDM financing markets to engage. On the issue of a CER reserve, this was set at 5% of CERs to be held for 20 years post-closure – much lower than the possible 20% option of the draft text.

All of this is subject to final approval by the full COP, but it is a very promising development. A full report on the Durban conference will be available in the near future.