8th Report - Carbon Capture, Usage and Storage

The government agrees, stating the recommendation has been implemented as the Department already sets out its rationale for supporting CCUS in various sectoral strategies and compares costs with alternative approaches to achieve net zero. It ensures resources are allocated to sectors with few alternatives and where CCUS is cost-effective.

The government agrees and outlines its plan to monitor and report on net carbon captured by CCUS projects once operations begin, detailing obligations for Transport & Storage Companies and capture projects to report capture rates, storage performance, and leakage to relevant regulators. It has also established a Cluster Sponsor Function for performance oversight.

The department has created business models that provide the minimum subsidy required, keeps the allocation of costs and risks under review to reduce subsidy, has established assurance and control mechanisms, created a new construction team and finance lead, and will carry out monthly reviews reported via the Sponsor Function Board.

The department will continue to evolve business models including mechanisms to ensure taxpayers and consumers benefit financially from the success of CCUS projects, including gainshare, and will work with the National Wealth Fund and Great British Energy to support delivery and drive value for money, with a target implementation date of December 2026.

The Department and HM Treasury will assess whether the full CCUS programme will be affordable for taxpayers and consumers, with a target implementation date of Summer 2025.

The government will reappraise on an annual basis its approach to assessing the value for money of CCUS projects, considering the impact of up-to-date scientific understanding. This appraisal has been implemented since the start of the CCUS programme and was implemented most recently via Full Business Cases in Summer 2024.

The government agreed that any future support for BECCS will be accompanied by monitoring arrangements that provide real assurance that industry is meeting sustainability criteria, which will build on existing sustainability criteria for biomass, with target implementation in Summer 2025. The department plans to consult later this year on the development of a common biomass sustainability framework. 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.

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.

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.

The department has already set out the relative role of CCUS in decarbonising sectors in various sectoral strategies and regularly updates its analysis as part of the carbon budget delivery cycle, ensuring that CCUS resources are allocated where few alternatives exist and where it is cost effective.

The department has already set out the relative role of CCUS in decarbonising sectors in various sectoral strategies and regularly updates its analysis as part of the carbon budget delivery cycle, ensuring that CCUS resources are allocated where few alternatives exist and where it is cost effective.

The government agrees, stating that existing business models already include mechanisms like a 'gainshare' in the Net Zero Teesside Dispatchable Power Agreement to ensure financial benefit for taxpayers and consumers. The Department will continue to evolve these models, working with the National Wealth Fund and Great British Energy.

The government agrees and states that it already assesses the affordability of CCUS support as part of key policy processes and Spending Reviews. It highlights that rigorous assessments, in line with Treasury Green Book principles, have already been undertaken for the initial phases of the East Coast and HyNet clusters, considering impacts on taxpayers and billpayers.

The government agrees and is taking several actions regarding BECCS, including developing new sustainability criteria for future support, planning a consultation on a common biomass sustainability framework, commissioning BSI to develop GGR methodologies by mid-2025, and launching an independent review into GGRs.

The government states it has already created business models to provide minimum subsidy, established a Cluster Sponsor Function to monitor progress and risks, and set up assurance and control mechanisms, including a new construction team with monthly reviews.

The department has created business models that provide the minimum subsidy required, keeps the allocation of costs and risks under review to reduce subsidy, has established assurance and control mechanisms, created a new construction team and finance lead, and will carry out monthly reviews reported via the Sponsor Function Board.