Cross-border CCS (Carbon Capture and Storage) projects offer an effective solution to achieving net-zero emission targets. Three of the nine CCS projects announced by the Japanese Government in 2024 are cross-border CCS projects. Japan is considering capturing CO2 emissions from industrial complexes in Tokyo Bay, multiple industries in the Setouchi region, as well as industries in the Kinki, Chugoku, and Kyushu regions, and shipping the captured CO2 to the Southern and Northern Malay Peninsula Carbon Capture and Storage Projects and the Sarawak offshore storage facility. Additionally, Japan is also considering shipping captured CO2 to storage facilities in Oceania. Singapore is seeking opportunities to send captured CO2 to the Sunda Asri Basin in Indonesia. Indonesia is looking for overseas partners willing to store captured CO2 in the Ubadari storage facility and other CO2 storage potentials.

The carbon market agreement reached at COP29 in Baku allows the full implementation of Article 6 of the Paris Agreement. This agreement unlocks the international carbon market, both mandatory and voluntary, and facilitates cross-border cooperation. Cross-border cooperation is expected to reduce the cost of implementing countries' national climate plans (NDCs) by up to $250 billion per year. Certainly, cross-border CCS projects will play an important role in achieving these savings.

Another agreement reached at COP29 is the new collective quantified goal (NCQG) for climate finance, which aims to provide $300 billion annually from developed countries to support developing countries in responding to and adapting to the impacts of climate change. This will potentially be a source of funding for cross-border CCS projects in Asia.

However, to realise the potential of cross-border CCS in Asia, much work still needs to be done. The Asia Natural Gas and Energy Association (ANGEA) has commenced a study on how to accelerate cross-border CCS in the Asia-Pacific region. The study covers two aspects of cross-border CCS projects:

(a) Emissions reductions accounting and accreditation, which includes guidance on:

• Emission reduction unit generation
• Rights to emission reductions
• Cross-border emission reduction transactions
• Carbon MRV (Measurement, Reporting, and Verification)
• Permanence

(b) Implementation of cross-border CO transportation and storage, which includes guidance on:

• CO stream criteria
• Transportation modes and requirements
• Storage site permitting
• MMV and auditing requirements for storage
• Site closure procedures
• Operating liabilities

To support the development of cross-border CCS in the region, and as part of the Asia CCUS mission to build a better understanding of CCS, we invite ANGEA to share their study findings at the 21st Knowledge Sharing Conference.