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

Carbon capture, utilization and storage (CCUS) technology is critical forachieving climate goals and transitioning to a low-carbon economy. So, whileefficiency measures and renewable energy are important, CCUS will be essentialfor decarbonizing hard-to-abate sectors and achieving net-zero emissions.However, it is important to differentiate between two important terminologiesrelated to CCUS, namely, carbon, capture and storage (CCS) and carbon captureand utilization (CCU). The regulatory framework to develop CCS is increasingaround the world, and Brazil recently advanced in this area with the enactment ofLaw No. 14.993, which establishes specific regulations for CCS activities in thecountry. However, the situation with CCU is quite different, as there is a criticalregulatory gap in developing CCU globally. The paper adopts the use of doctrinalresearch and case study analysis. In so doing, it begins by outlining theinterrelation between CCUS, CCS, and CCU, as well as the primary legal andfinancial barriers to their implementation. It proceeds to highlight the disparitybetween advancements in the development of the different aspects of CCUS, andadopts Brazil as a case study. The authors conclude with a set of recommendationsfor policymakers. These include developing comprehensive legal and regulatoryframeworks, investing in research and development, promoting public awarenessand engagement, accessing financial challenges and funding opportunities, andestablishing technical committees to oversee implementation. They argue thatwhile addressing these legal and policy barriers is challenging, it is essential forenabling large-scale CCUS deployment to meet climate goals.