Recommendation 21

The Department recognised that there are some “contested views” concerning, for example, the effectiveness of CCUS in reducing emissions from gas–fired power stations.69 We received written evidence suggesting that there are higher levels of methane (a gas with significant greenhouse effects) leakage throughout the supply chain for liquified natural gas (LNG) than previously thought. Given that the UK’s LNG production is winding down, more LNG is likely to be imported from countries like the USA, lengthening the supply chain and worsening the risk of leakage. Methane leakage during production and transportation of LNG are ‘upstream emissions’ that will not be addressed by CCUS and might have a greater climate impact than the actual burning of the gas at a power station.70 The Department told us that there are contested views in this space and 63 Contracts signed for UK’s first carbon capture projects in Teesside – GOV.UK 64 Letter from Minister of State for Industry dated 11 December 2024; and Letter from DESNZ to PAC dated 21 January 2025. 65 Q 7 66 Q 24 67 Q 25 68 Q 27 69 Q 4 70 CCUS0018 16 that issues such as methane leakage will need to be looked at through the broader perspective of Carbon Budgets, rather than through the CCUS programme.71