Timor Leste Carbon Capture Storage (IFC-607385)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Timor-Leste
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bayu-Undan reservoir
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 31, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Timor Leste
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 1.60 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1.60 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 4, 2024

Disclosed by Bank Apr 3, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the IFC, the Government of Timor-Leste (GoTL) is currently evaluating the development of a carbon capture storage (CCS) hub facility at the depleting Bayu-Undan reservoir, a mature gas and condensate field located in the Timor Sea which has been in production since 2004.
The Bayu-Undan reservoir has the potential to safely and permanently store approximately ten million tons per annum of CO2, as estimated by the current operator. The proposed Bayu-Undan CCS reflects GoTL’s commitment towards accelerating decarbonization and meeting the Paris Agreement commitments.
In response to GoTL’s request, IFC, with cross support from the World Bank, will provide assistance by conducting assessments on legal and regulatory issues and best practices, knowledge sharing and potential fiscal benefit sharing and local participation opportunities through engagement on 4 key components:

1. CCS Knowledge Sharing – Through knowledge reports and workshops, IFC will provide the GoTL with a better understanding of CCS by covering topics such as: CCS technology and project developments; CCS policy, legal and regulatory developments; and CCS economics, carbon markets, business cases, and commercial arrangements;
2. CCS Legal and Regulatory Mapping – IFC will review of the current relevant legislation and regulation in Timor-Leste against international CCS legal and regulatory best practice, international conventions, obligations, and applicable carbon markets and present framework options to assist GoTL.
3. CO2 Storage Hub assessment and Carbon Markets – IFC will conduct a market assessment for future international CO2 trade in the Asia Pacific region to understand the potential and competitive positioning of the Bayu-Undan CCS project to become a regional CO2 storage hub.
4. CCS Fiscal and Benefit Sharing Planning – IFC shall review existing license/production sharing frameworks and fiscal frameworks which could be applied to the CO2 storage project, to maximize revenues to the country.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No project contacts provided at the time of disclosure.

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works