Remarks by Mark Maddox
Acting Assistant Secretary for Fossil Energy
to the Ministerial Meeting Workshops
of The Legal, Regulatory and Financial Issues Task Force
of The Carbon Sequestration Leadership Forum
London, United Kingdom
July 14, 2004

"The Art and Science of CO2 Capture and Storage:
A Constructive Alternative for Greenhouse Gases"

Good morning everyone.

This is an important meeting for the Carbon Sequestration Leadership Forum because the work to be done here will be pivotal to the success of the Ministerial Meeting in Melbourne this Fall.

Our objective is to complete work on a set of recommendations for Melbourne and, in that regard, you'll hear later this morning from: Tania Constable, of Australia, the chair of our task force on Legal, Regulatory and Financial Issues; and Sergio Garriba, of Italy, the chair of our Stakeholder Group.

I want to recognize now the enormous amount of work that they, their groups, and many others have invested in getting us to this point. Thank you for your effort.

My assignment as the first speaker is to put this next two-and-a-half days in perspective.

The best way to do this is with some words I used Monday in Paris in meeting with executives of the International Energy Agency and the agency's Working Party on Fossil Fuels.

These words come from a series of speeches by my boss, Secretary of Energy Abraham, on energy and greenhouse gases and the explosive increase in energy demand that we know is coming; and which energy markets are beginning to feel today.

I quote the Secretary directly:

• "Energy is too precious a commodity to waste...,"
• "Carbon sequestration…acknowledges a simple and indisputable fact: Fossil fuels will continue for the foreseeable future to be the world's most reliable and lowest-cost energy resources."
• "...it is unreasonable to expect any country that possesses abundant supplies of inexpensive fossil fuels to forego their use."
• "When these technologies are developed, we all will exceed our targets."
• "If they are not developed, we all will fail."

I use the Secretary's words because it is difficult to frame the proposition more succinctly or with more clarity. When these technologies are developed, all nations can succeed in energy and environmental policy; but, if they are not developed, we all will fail.

The Carbon Sequestration Leadership Forum's purpose is to develop carbon capture and storage as an internationally acceptable option for greenhouse gas reduction.

Our goal is to link science and technology with a body of non-binding but ready-to-use concepts of legislation, regulation and financial incentives that individual nations can apply to their needs and – at the same time – satisfy any obligations they may have under existing or proposed international agreements.

To do this, it is necessary to establish non-binding frameworks on which to base institutions and mechanisms of governance and administration that can offer common understanding and common ground on which to proceed for all who would use them.

If such capability is not in place, the technologies may go unrecognized and unused no matter how much they promise. And their promise is substantial. It is the deep curtailment and ultimate elimination of most carbon dioxide emissions.

In short, we are undertaking nothing less than the creation of an entirely new tool for the world - the creation of a new industry and a new discipline to serve humankind.

All nations are struggling to balance increased energy use and their citizens' demands for economic growth and security with environmental concerns - developed, transitional and developing economies alike. The Forum is a means of jointly developing the science and technology that will allow all to grow without harm.

The art and the science of industrial carbon management can transform the way all nations obtain and use energy and – in doing this – transform the world itself.

The Paris meeting was informative and encouraging.

Key executives of the Agency joined us, including:

• Claude Mandil, the executive director;
• Paul Freund, project director of the Greenhouse Gas R&D Program;
• Richard Bradley, the head of the Energy and Environmental Division;
• Nancy Turck, legal counsel;
• And Marianne Haug, director of the Office of Energy Efficiency, Technology and R&D.

Our discussions covered:

• The Greenhouse Gas Program's work on legal and regulatory frameworks;
• Current and prospective national laws;
• Priority legal issues;
• Existing and future international frameworks as seen by the public sector, including a representative of the World Bank and three standing conventions;
• And, existing and future international frameworks as seen by the private sector.

When the Carbon Sequestration Leadership Forum organized in Virginia a year ago the spirit of cooperation was prevalent, palpable and strong.

When our ministers signed for our countries, their expectations were high. Since then, our task forces and working groups have achieved a great deal.

Yet, at the same time, the need to examine and concentrate on details has at times tended to lead our attention away from the unity of purpose and common interests that our ministers felt; and which they wanted and expected us to consult in our work.

Now, the emphasis of our activity is shifting from process to product.

This meeting marks the beginning of the Forum's transition from preparation to action.

Now, it is imperative that we have ready for the Melbourne Ministerial this Fall a basis for action in the form of consensus recommendations for consideration and endorsement that include:

• International Guiding Principles for a Legal and Regulatory Framework;
• A range of collaborative technology development projects - 10 are proposed;
• A roadmap for technology development;
• And provision for wide stakeholder participation.

The proposed projects are meant to produce information that will allow others to judge how, where and whether carbon capture and storage can benefit them. The framework principles will make the projects possible. And stakeholder participation will help it all move forward.

Tania Constable and her task force have produced a set of draft principles that are a long step in this direction.

In addition, our discussions later this week will initiate the equally important dialogue on financial issues associated with the development and deployment of carbon capture and storage. It's essential that private industry have incentive to join in.

And so, the work of our two and a half days here will be pivotal to Melbourne.

Melbourne, in turn, will be pivotal to the early establishment of carbon capture and storage as an internationally accepted and constructive option in dealing with greenhouse gases.

Our need as members of the Policy Group is not necessarily to produce something perfect in all respects; but rather to produce something that is good, solid and useful for our ministers and our countries.

I urge everyone here to think deeply about what it will take to prepare a strong, substantive deliverable product for our ministers - something all our nations can use now in beginning to develop their individual policies and in planning future cooperation.

Let's find and re-focus on the spirit of the Forum's beginnings - on common needs, common interests, comity and consensus.

Let's put thought into our work: And an equal amount of work into our thought.

Think of it as a 4-C approach to carbon management if you like: Common needs, common interests, comity and consensus.

Remember: When these technologies are developed and deployed, all nations can succeed in energy and environmental policy; but, if they are not developed and deployed, we all will fail.

We know what we should do. Our ministers set the example last year.

We know what we have to do. The common needs of our nations point the way.

Let us all resolve now to produce for our ministers a body of work that will enable them to move forward at Melbourne in the same unity of purpose and spirit of cooperation that gave birth to this Forum at Tyson's Corner.

With this in mind, I yield the remainder of my time to Tania Constable and Sergio Garriba.

Thank you for your attention and attendance. Your work will make a difference.