Recommendation 11

Looking to the future, the Department told us it wants to move the balance of risk away from the government as the market for CCUS evolves.33 The Department’s current assessment is that, because projects are first–of–a– kind, there is an inherent risk [of failure] which the market will not take on and therefore its support is appropriate.34 The Department wants to move away from projects financially backed by the government.35 It wants to establish what it describes as a self–sustaining “…commercial and competitive market…” for CCUS from 2035.36 24 C&AG’s Report, para 18 25 Qq 15–16 26 Q 27 27 Q 56 28 C&AG’s Report, para 2.2 and Figure 6 29 C&AG’s Report, para 2.2 and Figure 6 30 Q 12 31 Q 12 32 Q 27 33 Q 74 34 C&AG’s Report, para 3.17 35 C&AG’s Report, para 3.17 36 Q 74; C&AG’s Report, para 3.17 12