The Clean Industrial Deal sends a strong signal to EU industries, but clarity on implementation will be crucial in the race to Net Zero

[Brussels, 26 February] – The Carbon Capture and Storage Association (CCSA) – the largest European CCUS trade association, representing more than 130 members across the value chain – welcomes today’s publication of the Clean Industrial Deal and its support for CCUS. The European Commission has delivered on its pledge to release the Deal within the first 100 days of the new mandate and this Communication is crucial to ensuring the decarbonisation and competitiveness of European industries.  

The European Commission is sending a very strong message to European industries, saying that their survival is at the top of the Commission’s agenda. We particularly welcome the positive signals sent to the CCUS industry, responding to the clear messages the CCSA set out in our open letter to the Commission in November – echoed by 30 MEPs – urging to include CCUS in the scope of the Clean Industrial Deal.

We support the Commission’s commitment to rolling-out the creation of a market for captured carbon – with the Industrial Carbon Management Strategy (ICMS) building the case for permanent carbon removals and their potential to decarbonise hard-to-abate sectors. It is also reassuring to see the continued commitment to the review of the ETS Directive in 2026.

The Commission also recognises the key role that hydrogen can play in the decarbonisation of the EU energy system – with further attention to be put on creating a market for low-carbon hydrogen – and commits to strengthening the Innovation Fund and developing a regulatory framework for low-carbon industrial products, supporting yet other of our key demands.

While the Clean Industrial Deal shows the Commission is on the right path to securing EU decarbonisation and competitiveness in a time when our region is facing industrial decline and competition from across the world, the CCSA claims that more detail on the announced commitments to the commercial deployment of CCUS technologies is required: more clarity on the ICMS implementation is needed to make sure the EU leads on CCUS and realises its ambitions.

Olivia Powis, CCSA CEO, said:

“The Clean Industrial Deal is a strong signal that the European Commission is serious about securing the future of European industries in the green transition. Recognising the role of permanent carbon removals, low-carbon industrial products and low carbon hydrogen are all essential to a future market.”

“But we need urgent clarity on the implementation of the Industrial Carbon Management measures: without it, Europe risks falling behind on CCUS. The CCUS sector is ready to act, but we need the backing to turn commitments into reality. Ambition alone will not deliver net-zero and the time to deliver the Deal is now.” 

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in Brussels and London. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 130 member companies who are active in exploring and developing different applications of carbon capture and removals, CO₂ transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please email press@ccsassociation.org

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The Climate Change Committee (CCC) has published its Seventh Carbon Budget advice!

The CCC state that they “cannot see a route to Net Zero that does not include CCS” and recommend a limit on the UK’s greenhouse gas (GHG) emissions for the period 2038 to 2042 of 535 MtCO₂e.

The CCSA welcomes the ambitious target. However, CCUS ambition, particularly near-term for low-carbon hydrogen, industrials and low-carbon dispatchable power appear conservative.

It is important that the Government maintains momentum to deploy CCUS now across our industrial heartlands in order to decarbonise industry and deliver clean power. We do not have time to wait until further down the line.

Read CEO Olivia Powis’ statement below:

“The CCSA welcomes the ambitious emission targets set by the Climate Change Committee (CCC) today. Achieving this carbon budget—while ensuring an affordable and secure energy system—requires swift and decisive government action to deploy critical technologies like Carbon Capture Utilisation and Storage (CCUS) now.”

“We are pleased that the CCC reaffirms CCUS as a vital enabler across multiple sectors, underpinning pathways for clean power generation, low-carbon fuel production, industrial decarbonisation, and carbon removals. As the CCC states, there is no route to net zero without CCUS.”

“However, we believe today’s CCUS targets, including those for low-carbon dispatchable power and carbon removals, are conservative. The government must set bold, upfront targets to accelerate industrial decarbonisation and clean power. To maintain momentum, it must urgently commit to deploying already-selected CCUS projects across the UK’s industrial heartlands, along with the wider project pipeline. Failure to act now risks leaving us open to further extreme weather events and the costs of dealing with climate change, as well as losing ground and opportunity in the global race to net zero.”

Today, the Public Accounts Committee (PAC) released a report on Carbon Capture, Utilisation and Storage (CCUS). The report raises important considerations for delivering first-of-a-kind projects in the UK. However, the CCSA is concerned and disappointed that the Committee has not fully accounted for expert advice from the IPCC and the Climate Change Committee —both of whom state that CCUS is essential to achieving net zero.

The CCSA have provided the Committee with clarifications in response to the conclusions presented throughout their report. These clarifications seek to address vital gaps in evidence upon which the conclusions of the report have been based, and presents factual evidence that has, thus far, failed to be considered by the Committee.

Read the CCSA’s full response to the PAC report here.

CCSA CEO Olivia Powis said:

“Whilst we fully support the Committee’s recommendations for updated targets for capture and storage, and in assessing value for money, it is extremely disappointing that the Committee has not taken onboard expert advice on delivering against our Carbon Budgets and securing our leadership in tackling climate change by successfully delivering first-of-a kind-projects in UK. This includes the Intergovernmental Panel on Climate Change (IPCC) and the Climate Change Committee (CCC) who state that CCUS – a proven technology that has successfully been capturing and storing CO₂ for over 25 years across the globe – is essential to achieving net zero. Additionally, when Chris Stark, Head of Mission Control for Clean Power 2030, was in front of the Energy Security and Net Zero Select Committee yesterday he stated that carbon capture and storage will provide a meaningful contribution towards 2030 and emphasised the enormous benefits of clean dispatchable power to the energy system.”

“The Government has recently committed to 81% emissions reduction by 2035, alongside Clean Power by 2030, and net zero by 2050. Meeting these goals requires CCUS. Without it, British industries will not be able to decarbonise their operations and products, and our power system will not have low carbon dispatchable power which is essential for delivering a secure energy system when the wind isn’t blowing, and the sun isn’t shining. If we are to reduce our reliance on expensive imported energy and products, and achieve long-term savings for consumers and benefits to UK PLC we must continue to move forward with these projects at pace.”

“With the CCUS industry already investing billions in world-leading projects across the UK, the Government needs to urgently maintain momentum on deploying CCUS across our industrial heartlands. The Committee has correctly identified that deployment is behind schedule due to government delays, but by delivering these essential projects we can unlock the huge economic opportunity that is within our grasp. CCUS could attract £20-£30 billion in private investment by 2030, creating significant tax returns to the Exchequer. And with almost one-third of Europe’s geological storage potential, the UK could have a CO₂ storage sector collectively worth £30bn a year in taxable revenues by 2050. Government now needs to be making responsible and timely decisions to support the next clusters and projects, and deliver substantial economic benefits for the UK before the opportunities and jobs are lost, with investors and developers moving elsewhere.”

Notes to Editors

Press Pack: Infographics and an animation accompany the press release for use. Download the press pack here.

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO₂ transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please email press@ccsassociation.org