Select committee: Public Accounts Committee

Recommendation 22

8th Report - Carbon Capture, Usage and Storage Published 7 Feb 2025 Addressed to HM Treasury
Recommendation (the committee's words)
The original 2030 targets for the CCUS programme, which the government has now told us are unachievable, included a goal for the UK to achieve 5 mtpa of engineered greenhouse gas removals. The bulk of this was expected to be achieved by applying CCUS technology to a biomass energy plant (a process known as BECCS).72 There are no BECCS projects included in Track 1, but the Department told us that it remained under consideration for its future plans.73 Ofgem administers the existing government support for large biomass generators, including overseeing an assurance regime intended to ensure that they only burn sustainably sourced biomass.74 However, an Ofgem investigation into Drax, which had received £6.5 billion in public funding between 2002 and 2023 and is by far the largest biomass plant in the country, found in August 2024 that there was an absence of adequate data governance and controls in place that had contributed to, amongst other things, to Drax being unable to support the reliability of its profiling data reporting of forestry type and sawlogs for Canadian consignments.75 Earlier in 2024, a National Audit Office report on the government’s support for biomass concluded, more broadly, that the government could not demonstrate that its current arrangements were adequate to give it confidence industry was meeting sustainability requirements.76 If not all of the materials used were meeting the government’s own sustainability standards this would be unacceptable. We also received written evidence suggesting that the application of carbon capture technology to biomass power generation is effectively untested on a commercial scale, as all real–world experience to date has been on coal–fired stations, which are substantively different.77 We also note the issues caused by international accounting principles for carbon emissions. If materials are exported from another country, it is that country that has to report the emissions. The absurdity of this is if the UK sou

From: Public Accounts Committee, 8th Report - Carbon Capture, Usage and Storage (HC 351), 7 February 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Eighth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

Read the government's response ↗ Report an error

Treasury minutes: Government response to the Committee of Public Accounts on the Eighth report from Session 2024-25

Published 6 May 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with the Committee's recommendations across the areas covered, while saying that for annual reappraisal of value for money its process is "ongoing, dictated by the project pipeline, rather than a fixed annual schedule".

  • On annual reappraisal of value for money, the government says it agrees with the recommendation but reviews the approach "primarily" via the Business Case process, ahead of final investment decisions, and not on a fixed annual schedule.
  • The government acknowledges that the 2030 ambition of capturing and storing 20-30 million tonnes of CO2 per year "is no longer achievable", and will publish a report setting out its plan to meet carbon budgets, with a target implementation date of Spring 2025.
  • On BECCS, biomass sustainability criteria "will be developed" for any future support, and the department "plans to consult later this year" on a common biomass sustainability framework. Target implementation date: Summer 2025.
  • On sharing financial benefits, the government notes the business models already have mechanisms, such as a "gainshare" mechanism in the Net Zero Teesside agreement, and will "continue to evolve" them. Target implementation date: December 2026.

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