Last year, the Asian Development Bank (ADB) and the Government of Australia, through its Global Carbon Capture and Storage Institute, have signed a trust fund agreement to support the capture and storage of rising levels of carbon emissions in Asia.

Under the agreement, Australia is supplying a A$21.5 million grant for the Carbon Capture and Storage Fund. The fund will support geological investigations and environmental studies into potential carbon dioxide storage sites, capacity building, and community awareness programs which can help accelerate the deployment of carbon capture and storage demonstration projects around Asia.

Carbon capture and storage (CCS) is a way of reducing emissions from fossil fuels by capturing carbon dioxide from large point sources, such as coal power plants, and storing it away from atmosphere by different means.

So far there have been only small-scale trials of various technologies which come under the umbrella of CCS. The Australian proposal, announced by the government in September 2008, is an effort to set up a Global Carbon Capture and Storage Initiative. The initiative, launched in May 2009, proposes to accelerate at least 20 fully integrated industrial demonstration projects around the world by 2020. The Australian plans to bring together researchers, industry consortia and government to invest in and develop commercial CCS projects.

The new fund aims to support ADB’s developing member countries (DMCs), with initial priority given to the People’s Republic of China, India, Indonesia, and Viet Nam. Central and local governments, the private sector, and other entities eligible for ADB assistance will be able to tap it, with projects to be selected on criteria drawn up by Australia and ADB.

India has already indicated that it is keen to participate in this initiative as a founder member. For this, the government will have to enter into an MoU before November 2010.

The Indian participation will focus on research and development, regulatory and commercial aspects of the CCS technology. The ministry of external affairs has been consulted on the issue of membership of the Initiative. The foreign office has given its assent to the proposal on the condition that India would not have to take on a demonstration project till the technology is proven.

See also: http://www.adb.org