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The UK Liability Framework for the Transport of CO2 for Offshore Carbon Capture and Storage Operations
The International Journal of Marine and Coastal Law  (IF0.656),  Pub Date : 2017-02-22, DOI: 10.1163/15718085-12341419
Viktor Weber, Michael N. Tsimplis

Carbon (dioxide) capture and storage (CCS) is one of the solutions for decarbonising society whereby CO2 is captured, transported, and injected into geological formations. It can be transported to offshore locations through pipelines or ships. Which method provides for a better deal for investors depends to an extent on the financial risk associated with these two methods, which in turn is linked with exposure to liability. This paper compares the potential liability arising from the carriage of CO2 by ships and by pipelines in the UK offshore context. The two modes of transport are governed by significantly different regimes, even though they concern the same material. It is argued that the transport of CO2 by ships and by pipelines poses similar risks and therefore they should have a similar liability regime. This would afford pipeline operators the economic advantages available to shipowners and incentivise investment in the transport phase of CCS.