ACCELERATING CCS FIVE YEAR STRATEGIC PLAN: JUNE 2015 UPDATE

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1 ACCELERATING CCS FIVE YEAR STRATEGIC PLAN: JUNE 2015 UPDATE

2 OUR VISION FOR CCS ``CCS is an integral part of a low carbon future OUR MISSION ``To accelerate the development, demonstration and deployment of CCS globally OUR OBJECTIVES ``Fact-based influential advice and advocacy ``Authoritative knowledge sharing OUR OUTCOMES ``Increased understanding and acceptance of CCS ``Increased commercial opportunities for CCS ``Increased support for CCS in international and national energy and climate change policies OUR VALUES ``Quality We strive for excellence in all that we do. For our Members, we are a trusted, knowledgable and responsive partner known for exceptional advice and service delivery. ``Collaboration We work cooperatively with colleagues and our Members. Our teamwork goes beyond organisational and geographic boundaries to achieve exceptional results. ` ` Integrity We hold ourselves and each other to the highest standards in all we do and say. Our actions and communications are Member responsive, socially, environmentally and economically responsible, ethical and respectful of diversity.

3 CEO MESSAGE As we know, the world is largely dependent on fossil fuels for energy and, as demand inevitably grows, we will continue to be dependent on them for decades to come. In order to address the climate change and energy security challenges before us, we need a portfolio of lowcarbon technologies, of which carbon capture and storage (CCS) is a vital component. To achieve emission reduction targets limiting the longterm global average temperature rise to no more than 2 C, the International Energy Agency (IEA) estimates that energy-related emissions must reduce substantially. CCS could contribute 13 per cent of required emission reductions by 2050 in a least cost scenario. But we need to act now to ensure it can play its full part. The Global CCS Institute champions the development, demonstration and deployment of CCS throughout the world. At its core, our approach is firmly rooted in the task of creating the right conditions to increase the uptake of CCS through: `publicly advocating for CCS as a clean, safe technology, and `generating and sharing knowledge about real life experiences with CCS. Formally established in 2009, the Institute has a strong and diverse Membership comprising governments, global corporations, small companies, research bodies and non-government organisations (NGOs). The Institute is a not-for-profit, Member-focused organisation. We are headquartered in Australia, with offices in China, Belgium, Japan and the US. In response to Members feedback, we have moved to a regional service delivery model with strengthened representation in the Americas, Asia Pacific, and Europe, Middle East and Africa. The Institute is immersed in every aspect of CCS across the full spectrum of disciplines and activities, and we are connected to, and work with, a vast network of CCS experts and stakeholders. Our purpose is to acquire, generate and share knowledge on real life experiences of CCS to accelerate its use. We also monitor and analyse the barriers and enablers for CCS adoption, and advocate the advantages of, and need for, CCS. In essence, we serve our Members by helping to drive the implementation of CCS as quickly and cost effectively as possible. And we recognise the importance of existing and emerging uses of carbon dioxide (carbon capture utilisation and storage (CCUS)) in supporting the demonstration phase of CCS development. Fundamental to our success is our interaction with Members, stakeholders and partners. Accordingly, we have valuable alliances with multilateral bodies, including the International Energy Agency (IEA) and the Carbon Sequestration Leadership Forum (CSLF). Over the course of this five-year strategic plan, we will consolidate the Institute s role as a leading global authority on CCS. We will continue to advocate for CCS to be included in key national and international clean energy agreements and policies, educate the broader community about the value of the technology, and drive its further development, demonstration and deployment. The Australian Government had the vision to establish the Institute and set us upon our course. It is now time for us to ask Members to make a financial commitment that will allow the Institute to build on the momentum to accelerate CCS as a vital technology in tackling climate change and providing energy security. I look forward to working with you to meet these challenges. Brad Page 1

4 A C C E L E R AT I N G C C S CCS IS A VITAL COMPONENT OF A PORTFOLIO OF LOW CARBON TECHNOLOGIES 2

5 FIVE YEAR STRATEGIC PLAN THE CHALLENGE Fossil fuels will remain a significant part of the global energy mix. CCS is necessary to minimise the damaging effects of climate change at least cost. Global primary energy consumption is still underpinned by fossil fuels and is expected to grow into the future Mtoe Oil Coal Gas Nuclear Hydro Bio energy Other renewables Mtoe = millions of tonnes of oil equivalent Source: IEA, World Energy Outlook. OECD/IEA, France The IEA has identified fundamental trends in its central energy scenario to 2040: `world primary energy demand continues to grow, projected to increase by 35 per cent between 2012 and 2040 `fossil fuels continue to account for the bulk of increased energy demand `the increase in energy demand will predominantly come from non-oecd countries. Under this scenario, energy-related global carbon dioxide emissions remain on an upward path, with the IEA projecting a 20 per cent increase in emissions to 38.0 gigatonnes by To limit climate change, the rise in carbon dioxide emissions must be slowed and, in the decades to come, reversed. Achieving decarbonisation while delivering more energy and growth is a challenge to be met by a number of clean energy solutions. These include energy efficiency and demand management measures, renewables and other low-carbon energy sources, and the use of fossil fuels and biomass with CCS. CCS is not optional. It is a vital component of a portfolio of low-carbon technologies required to achieve emission reduction objectives at least cost. The IEA estimates that the exclusion of CCS as a technology option in the electricity sector alone would increase investment costs by around US$3 trillion by Beyond the electricity sector, the IEA has stated that completely decarbonising the energy system would be unlikely without CCS. For CCS to play its part, it is clear that a substantial increase in new commercial-scale CCS projects needs to occur. For this to happen, we need to take action on several fronts, including: `increasing support for CCS in international and national energy and climate change policies to achieve large-scale emission reductions in the most efficient and effective way `accelerating government and industry funding to further develop the technology and bring down costs through innovation `encouraging the sharing of lessons learnt through open networks, especially in non-oecd countries, to help stakeholders deal with difficult and timeconsuming challenges `increasing public and stakeholder understanding and acceptance of CCS and its role within the broader low-emissions energy context. IEA, World Energy Outlook. OECD/IEA, France 1 IEA, World Energy Outlook. OECD/IEA, France 2 IEA, Energy Technology Perspectives 2012: Pathways to a Clean Energy System. OECD/IEA, France 3

6 ACCELERATING CCS INTERNATIONAL COLLABORATION To progress CCS the Institute works in partnership with a large number of organisations whose goals and core activities complement our own. This approach allows us to take advantage of the combined expertise of multiple disciplines and organisations, resulting in better coordinated global advocacy and knowledge-sharing activities. In particular, the Institute collaborates with key multilateral bodies focused on broader energy developments or CCS specifically, and with climate change research and environmental policy organisations. ``KEY MULTILATERAL BODIES: `We make extensive use of International Energy Agency (IEA) analyses and materials on future energy trends to advocate for CCS and, in turn, provide expert input on the status of CCS to the IEA. We also collaborate on issue-specific events. `We contribute to, and support the management of, the Carbon Sequestration Leadership Forum s (CSLF) capacity development fund, and provide experts for various CSLF taskforces. We also conduct joint events on specific issues. `In conjunction with the IEA, the Institute provided secretariat services to the Clean Energy Ministerial CCUS Action Group. We also provided expert input into plans and recommendations to the Clean Energy Ministerial. ``RESEARCH AND ENVIRONMENTAL POLICY ORGANISATIONS: `The Institute and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) co-developed a suite of public engagement and communication tools using the best available international research and CCS demonstration experience. `The policy and advocacy work of the Institute and the research focus of the IEA Greenhouse Gas (IEAGHG) Research and Development Programme are highly complementary. We share information and assist each other in steering activities. `Using our convening power, the Institute supported the global launch of Perspectives on Carbon Capture and Storage, a report by the ENGO Network on CCS an international group of leading environmental organisations at the United Nations climate talks in Doha, Qatar, in December ` In addition, the Institute is moving to expand its partnerships outside the CCS community. The aim is to ensure that CCS is on the agenda as a critical climate change mitigation technology in mainstream energy and climate change discussions. 4

7 FIVE YEAR STRATEGIC PLAN A GLOBAL CHAMPION FOR CCS The Institute is uniquely positioned to successfully champion the development, demonstration and deployment of CCS. The impact of the Institute is greater than the sum of our parts. The value of Institute Membership may vary according to the role you play in the CCS community but, universally, Membership signifies an active commitment to mitigating climate change and creating a future characterised by clean energy security. Harnessing our global whole-of-sector perspective, we will continue to build on our strong track record of achievements and enhance the support we provide to Members through: ``STRONG, INDEPENDENT AND INFLUENTIAL REPRESENTATION `a unified voice for the CCS community `the leveraging power of a collective Membership organisation that can raise the profile of CCS `global leadership in boosting the political will for CCS `advocacy for CCS and a supportive policy architecture `international and regional representation, including through key international climate change and energy security forums `demonstrated commitment and recognition as part of a global alliance aiming to decarbonise fossil fuels. ``UNIQUE CONVENING POWER `gateway to a global network of governments, companies and decision makers with CCS experience and expertise `identification of collaborative opportunities between CCS professionals to progress projects, resolve issues and contribute to the policy framework `access to thought leadership, events and commentary around CCS. ``CCS EXPERTISE, KNOWLEDGE AND INITIATIVES `a central repository for information about the global status of CCS `access to up-to-date and peer reviewed resources on CCS covering a range of disciplines `independent global advice, analysis and information across the full CCS chain, including drivers and barriers `a world-leading global knowledge platform that marshals high quality information from a wide range of sources ` strong support for non-oecd capacity development programs, often in conjunction with other international organisations. 5

8 TACKLING CLIMATE CHANGE REQUIRES AGGRESSIVE AND PROMPT ACTION CCS HAS A VALUABLE ROLE TO PLAY ENGO Network on CCS. Perspectives on Carbon Capture and Storage. December

9 FIVE YEAR STRATEGIC PLAN OUR STRATEGIC FRAMEWORK OUR VISION FOR CCS CCS is an integral part of a low-carbon future OBJECTIVE KEY STRATEGIES MEMBER ENGAGEMENT 2 1 Fact-based influential advice and advocacy Authoritative knowledge sharing 1.1 Improve awareness and understanding of CCS 1.2 Position CCS as a key low-carbon technology 1.3 Advise on the development of supportive policies, standards and frameworks 2.1 Build on our world-leading CCS knowledge base to support the business case for CCS 2.2 Drive knowledge transfer by optimising global collaboration and dissemination of high quality information 2.3 Increase the capability of countries to deploy CCS EVALUATION How we operate 1 We are regionally relevant and globally connected 2 We value our Members input and expertise 3 We are committed to good corporate governance processes Increased understanding and acceptance of CCS OUR OUTCOMES Increased commercial opportunities for CCS Annual Business Plan Increased support for CCS in international and national energy and climate change policies 7

10 ACCELERATING CCS OBJECTIVE 1 The Institute positions and promotes the critical role of CCS in a lowcarbon economy. We do this by connecting and advising key domestic and international influencers and working with them to develop appropriate policies, standards and programs. We also raise the profile of CCS as a vital, safe and clean energy technology through ongoing media and awareness campaigns and tools that support Members. Greater understanding of the technology advances the development, demonstration, and deployment of CCS and leads to the formation of appropriate incentives, funding, financing and risk solutions. FACT BASED INFLUENTIAL ADVICE AND ADVOCACY KEY STRATEGY 1.1 Improve awareness and understanding of CCS 1.2 Position CCS as a key low-carbon technology 1.3 Advise on the development of supportive policies, standards and frameworks EXAMPLES OF MEMBER BENEFITS SUPPORTING INITIATIVE 1 Promote CCS as a vital, safe and clean energy technology through an ongoing integrated communication strategy, including media and public awareness campaigns. 2 Develop generic communication resources and templates that can be customised easily to support specific Member needs. 3 Coordinate among Members quick responses to issues raised in the media. 4 Work with Members to develop a suite of explanatory materials promoting the importance of CCS in the climate and energy debate. 1 Advocate for inclusion and recognition of CCS in relevant United Nations Framework Convention on Climate Change mechanisms and bodies. 2 Participate in broad-based economic, energy policy and climate change events and ensure CCS is included as a costeffective solution in the energy and climate debate. 3 Convene meetings with, and among, key influencers, such as energy ministers, senior policymakers, diplomatic representatives, industry and NGOs. 4 Report to key climate and energy influencers on CCS cost and risk comparisons with other clean energy technologies to better make the case for CCS deployment. 5 Provide expert comment on issues affecting the development of CCS utilising appropriate and timely information about the status of CCS and CCUS, including project and policy updates. 6 Undertake thought leadership campaigns that dispel myths and misconceptions about CCS. 1 Support the development of high quality policy architecture and program implementation to deliver on international, national and sub-national commitments. 2 Develop relationships with influential national government Members and assist them to establish the right conditions for CCS and develop efficient legal and regulatory frameworks. 3 Support the development of internationally agreed CCS standards that meet the needs of Members. ``Increased acceptance and understanding of CCS and CCUS technologies and their role in climate change mitigation and energy security. ``Enhanced political will for the development, demonstration and deployment of CCS at regional and global levels. ``Increased level of policies and programs to incentivise development of, and investment in, CCS. ``Better informed decision making through access to the most up-to-date information on the global status of CCS. 8 ``A global coordination point for the delivery of key messages in support of CCS deployment.

11 FIVE YEAR STRATEGIC PLAN OBJECTIVE 2 The Institute generates, collects and shares information, experiences and lessons learnt by connecting people and networks. This enables government and industry to accelerate the uptake of technology, improve public awareness, reduce costs and drive innovation. We strive to provide insight at a global and local level. We provide our Members and key influencers with the ability to access and use world-leading CCS information to improve the business case for CCS and make informed decisions on progressing Member and societal interests on CCS matters. AUTHORITATIVE KNOWLEDGE SHARING KEY STRATEGY 2.1 Build on our worldleading CCS knowledge base to support the business case for CCS 2.2 Drive knowledge transfer by optimising global collaboration and dissemination of high quality information 2.3 Increase the capability of countries to deploy CCS SUPPORTING INITIATIVE 1 Expand the breadth, interrogation, composition and analysis of project, policy, legal and regulatory data. 2 Develop case studies, analyses and resources about lessons learnt from CCS and CCUS projects at various stages in the development lifecycle, including cancelled projects, as well as policy, legal and regulatory developments. 3 Expand and manage a world-leading, comprehensive and upto-date CCS project database. 4 Report to Members on financial models and business structures that support CCS projects. 5 Identify potential cost improvements by tracking developments in technology and relevant CCS and CCUS project experience. 1 Actively engage with Members to determine their knowledge needs. 2 Identify, develop and manage a networking function and workshop program, taking into consideration regional and global interests. 3 Customise information to meet different stakeholder needs. 4 Develop and support opportunities for exchanging information with Members and other organisations. 5 Provide high quality digital platforms to underpin the sharing of CCS information through multiple channels so it best reaches intended audiences. 1 Where applicable, create and implement tailored CCS capability development programs in local markets in non- OECD and OECD countries. 2 Develop appropriate tools, models and roadmaps, and assist in their implementation. 3 Conduct and disseminate assessments of drivers, barriers and the status of CCS at a regional, national and subnational level. 4 Support the development of education materials for primary, secondary and tertiary students and for educators. By deploying capability development programs in non-oecd and OECD countries, we are able to make progress on a range of challenges that impact on the demonstration of CCS. EXAMPLES OF MEMBER BENEFITS ``Cost savings, through use of the Institute s world-leading knowledge base and networks to meet Members knowledge needs. ``Better informed decision making through access to the latest and most comprehensive information on CCS. ``Ability to determine the knowledge priorities, publications and networks in which the Institute invests. ``Increased ability to build relationships, share experiences and resolve issues in collaboration with other CCS professionals. ``Strengthened capacity to allow for the rapid uptake of CCS technology as it is demonstrated. 9

12 ACCELERATING CCS HOW WE OPERATE The Institute s Member-focused approach is central to all our work. Regionally relevant, globally connected Implementation of this strategy is through a decentralised organisational model across three regions: the Americas; Asia Pacific (APAC); and Europe, Middle East and Africa (EMEA). Each region is responsible for: `Member relations and coordination of input into the Institute s work program and priorities `intra- and inter-regional networks `independent expertise and advice `access to, and dissemination of, the large amount of information available on CCS globally `collaborative advocacy and knowledge-sharing activities. The Institute s head office in Australia is responsible for: `overall coordination activities `development and maintenance of our knowledge platforms and systems `provision of business support services. Membership and engagement The Institute s Membership base comprises governments, corporations, academic institutions, NGOs and research and development bodies. Consultation is at the core of all Institute activities; we value our Members input and expertise. The Institute engages with Members to confirm overall direction and ensure that priorities and activities support our objectives and Members needs. With respect to the development of the Institute s annual work program, our consultative engagement model: The Institute s primary source of funding is Membership fees. A differentiated Membership classification and fee system has been implemented. Such a system is important as it allows us to maintain a broad and diversified Membership base. Governance and evaluation The Institute and its Board of Directors are committed to appropriate corporate governance. The Institute s Constitution defines our function, provides a set of principles and procedures that govern our conduct, outlines the rights of Members, and details the procedures for selecting Board members. The Board acts in accordance with the Australian Corporations Act 2001 and the corporate governance principles contained therein. The Institute s governance and advisory support comprises: `the Board `the Audit and Risk Committee `the CEO and Executive Leadership Team `the Board Selection Panel `expert advisors (as determined by the Board). The Institute is accountable for its performance and committed to transparent reporting. Our annual business plan is aligned to the Five-Year Strategic Plan, as are the activities in our work programs. To ensure we deliver Member value, we have a robust framework for evaluating and reporting the progress of our work programs against our objectives. `has a strong focus on regional views and priorities `seeks submissions from Members on potential work program activities `allows for feedback from Members on a draft work program. The final work program developed through this process is presented to the Institute Board for approval. 10

13 FIVE YEAR STRATEGIC PLAN Global CCS Institute OUR FOCUS WHAT WE OFFER UNIQUE VALUE TO MEMBERS Delivering value working globally with expertise across the CCS chain Diverse interconnected networks Convening power Global champion Policy agenda influence Thought leadership International & regional perspective Authoritative expertise Social research & public information Introductions & connections Status & progress reports Influential advice & advocacy A unified public voice Analysis, advice & recommendations Tailored tools & programs Representation in global forums Enhanced capability Up-to-date intelligence Extensive online resources Knowledge sharing Strengthened policy settings Technical & policy support Capacity development 11

14 ACCELERATING CCS For further details on aspects contained in this year Five- Year Strategic Plan, please contact the General Manager of the Institute office in your region: `Dr Victor Der, Acting General Manager, Americas Telephone: +1 (301) `Clare Penrose, General Manager, APAC: Telephone: +61 (3) `Andrew Purvis, General Manager, EMEA: Telephone: +32 (2) Global CCS Institute

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