The UK has no route to net zero without carbon capture and storage (CCUS).
If it’s serious about 2050 Labour must cut costs and scale up projects the Carbon Capture and Storage Association (CCSA) has warned.
Responding to the Climate Change Committee’s (CCC) latest advice on the Seventh Carbon Budget, the CCSA has published a set of recommendations to drive down costs while delivering economic growth and securing a low-carbon energy system.
CCUS is critical for slashing emissions across multiple industries from clean power and low-carbon fuel production to industrial decarbonisation and carbon removals. But the sector needs long-term certainty and investment to reach its full potential they say.
The UK government has already backed two CCUS clusters but the momentum must continue. “The most immediate step is to enable CCUS projects to move forward that have already been selected and invested millions of pounds at risk in our industrial heartlands” the CCSA said calling for funding commitments to Track-1, Track-2 and Track-1 Expansion projects.
To make CCUS more cost-effective the CCSA has outlined three key recommendations:
1. Smarter funding allocation – Future CCUS funding rounds must learn from Track-1 by improving risk-sharing between government and industry. The UK should adopt regular allocation cycles like offshore wind to attract investment and drive down costs.
2. Strengthening carbon markets – The UK needs to rapidly expand its Emissions Trading Scheme (ETS) introduce a Carbon Border Adjustment Mechanism (CBAM) and develop cross-border CO₂ transport and storage markets to ensure industries stay competitive while cutting emissions.
3. Leveraging public finance – The government should use GB Energy and the National Wealth Fund to de-risk first-of-a-kind projects and unlock private investment ensuring the sector’s long-term viability.
If the UK gets this right, the trade body says the rewards are enormous.
By 2050 the CCUS industry could create 50,000 skilled jobs unlock £94bn in GVA and generate £30bn annually from CO₂ storage exports. But without urgent action the sector risks stalling leaving the UK without a crucial tool for hitting net zero.
Mark Sommerfeld, UK Director, said: “The CCSA, with our members, has identified key levers that will drive down costs over time as more and more projects are delivered.”
“Government policy plays a crucial role in shaping this future. Implementing the recommendations in this report will reinforce the economic case for CCUS and activate these levers. Most importantly, the Government must sustain momentum by providing long-term certainty and commit funding to the already-selected CCUS projects and the broader pipeline.”
With over 130 member companies the CCSA is leading the charge to make CCUS a core pillar of the UK’s energy transition.
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