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Carbon Capture and Storage law firm in Bangladesh

Carbon Capture and Storage — considerations for projects involving Bangladesh

Overview

Carbon capture and storage (CCS) is increasingly prominent in national climate strategies. For international sponsors, financiers and equipment providers based in the UK or elsewhere, projects that involve Bangladesh raise a mix of technical, commercial and cross‑border legal issues. This note sets out high‑level considerations relevant to structuring, permitting and contracting such projects; it does not constitute jurisdictional legal advice for Bangladesh or the UK.

Legal and regulatory considerations

Regulatory frameworks for CCS differ markedly by jurisdiction. Key topics to evaluate early include:

  • Permitting and environmental approvals (EIA, emissions regulation, monitoring and reporting obligations).
  • Land rights and sub‑surface access — surface estates, mineral rights and any state control of subsurface pore space.
  • Liability allocation for leakages, long‑term stewardship and decommissioning.
  • Cross‑border transport of CO2 (if injection or storage occurs outside Bangladesh) and related customs, export/import and hazardous goods requirements.
  • Local content, employment, taxation and foreign exchange controls that may affect project economics.

Transactional and contractual issues

Commercial documentation must address regulatory uncertainty and long‑tail liabilities. Typical contractual tools include:

  • Robust allocation of subsurface title, permits and ongoing compliance responsibilities between sponsor, operator and host state entities.
  • Insurance and indemnities for construction, operations and subsurface risks, and clear triggers for taking on monitoring and remediation obligations.
  • Financing structures that accommodate phased permitting and performance milestones, and that use political risk mitigation where available.
  • Ancillary agreements covering CO2 off‑take, pipelines or shipping, and grid or power‑plant integration.

Practical checklist

  1. Map the regulatory approvals required in each jurisdiction and their typical timelines.
  2. Confirm subsurface ownership and any state prerogatives over storage rights.
  3. Build environmental baseline and monitoring plans aligned with both host state and lender expectations.
  4. Structure contractual liability and long‑term stewardship (e.g. transfer to competent authority, escrow or insurance).
  5. Assess cross‑border transport constraints, customs/classification and third‑party access to infrastructure.
  6. Consider political risk insurance and dispute resolution mechanisms suitable for long‑duration obligations.

Jurisdiction and sources

For primary authoritative material consult the relevant official agencies:

Our London office at Holborn Gate, 330 High Holborn, London, WC1V 7QH, can assist with cross‑border structuring, contracting and project finance considerations for CCS projects involving Bangladesh and the UK market.

General information only; not legal advice and not a substitute for advice on a particular matter.