Britain’s carbon capture industry says it has hit a critical juncture.
The project pipeline has never been stronger, yet policy uncertainty is slowing progress, stalling investment and threatening to push developers overseas.
That is the headline from new CCSA research which shows Britain could lead the global CCUS race — but only if 2026 delivers hard decisions, not more delay.
Five major CCUS projects have now reached financial close and moved into construction across Teesside, the North-West and North Wales.
They are already creating jobs and protecting industries from cement to energy-from-waste. Developers have more than 100 further projects in the wings capable of capturing 77Mt of CO₂ a year — more than the entire annual emissions of Austria.
The UK is also building serious carbon removals capacity, 18Mt of the pipeline is from technologies that pull carbon straight out of the atmosphere and store it deep under the seabed.
These removals are essential for sectors like aviation and agriculture that cannot eliminate all emissions.
But momentum is faltering, since 2023, 27 projects have been cancelled or paused and almost all remaining schemes have slipped by an average of two years. Three quarters of developers warn they may redirect investment overseas unless government sets out a clear route to market.
The sticking points are familiar: slow decision-making, delayed funding, and no commercial pathway for projects outside the first government-backed clusters.
The CCSA says the UK now needs an allocation framework that gives every viable project a route forward and new policies that create markets for low-carbon products, carbon removals and CO₂ storage. Only then can the sector scale into a self-sustaining market.
The CCSA warns that without action the nation risks losing billions in investment and tens of thousands of future jobs. With clarity the sector could unlock a predicted £94bn boost to the economy and support more than 50,000 jobs by 2050.
CEO Olivia Powis put it plainly: “CCUS represents one of the UK’s greatest industrial, economic and decarbonisation opportunities. This research shows the sector is primed for growth, but only if we create the conditions that allow developers to invest and deploy.”
CCS is ready to be a gamechanger appeared first on Energy Live News.