Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
CCUS remains only viable decarbonisation method for specific industrial process emissions
Recommendation
At present, CCUS technology is the only way to decarbonise industries that generate emissions from physical or chemical processes, rather than from the combustion of fuels. For example, 60 to 70% of emissions from the cement industry come from chemical reactions during production.78 We received written evidence stating that while there are currently no operational cement plants using CCUS anywhere in the world, there is a commercial–scale plant currently under construction in Norway.79
Government Response Summary
The government agreed to set out its rationale for supporting CCUS in each sector where it could be applied, including considering whether alternative approaches could be more cost effective, referencing various sectoral strategies and analysis. Separately, an independent review will consider how Greenhouse Gas Removals (GGRs) can assist the UK in meeting the government’s net zero targets and ensuring security of supply, out to 2050.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: To date, the Department has done little to ensure that government support for CCUS is directed to the sectors or locations where it will be essential for achieving net zero. 5. PAC recommendation: The Department should set out its rationale for supporting CCUS in each sector where it could be applied, including considering whether alternative approaches could be more cost effective. 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 In various sectoral strategies the department sets out the relative role of CCUS in decarbonising a given sector, including in the Net Zero Strategy, Industrial Decarbonisation Strategy, Clean Power 2030 Action Plan and the report on Future Opportunities for Electrification to Decarbonise UK Industry. It also takes into account analysis by the Climate Change Committee and organisations such as the Intergovernmental Panel on Climate Change (IPCC). The department sets out its rationale for supporting CCUS in each sector, as highlighted in these documents. 5.3 The department is committed to ensuring that it meets the government’s net zero targets in a way that protects consumers and taxpayers alike. Costs of decarbonising using CCUS are compared with alternative approaches to achieving net zero; the department is ensuring that CCUS resources are allocated to those sectors where currently few alternatives exist for achieving net zero and where it is cost effective to do so. The department regularly updates its analysis as part of the carbon budget delivery cycle. 5.4 The analysis to date has indicated that the projects selected, as part of the HyNet and East Coast Clusters, are consistent with allocating resources to those sectors with few alternatives for achieving net zero. 5.5 Separately, on 10 February 2025, government announced an independent review to consider how Greenhouse Gas Removals (GGRs), including large-scale Power BECCS and Direct Air Capture with Carbon Storage (DACCS), can assist the UK in meeting the government’s net zero targets and ensuring security of supply, out to 2050. Further details of the review will be shared in due course.