Industry, Unions, Academics and Energy Leaders Unite to Call for Greater Government Support for Industrial Decarbonisation

• Cross-sector coalition calls on UK Government to strengthen support for industrial decarbonisation in the upcoming Spending Review.
• Warning that failure to invest risks significant job losses, decline in our critical industries, and threats to UK energy, product and economic security.
• Coalition of 50 organisations calls for accelerated delivery for CCUS and low- carbon hydrogen.
• Letter urges the Government to treat industrial decarbonisation with the same urgency as the 2030 Clean Power goal.

For immediate release

[London, 27 May]– A broad coalition of industry associations, trade unions, academics and energy and manufacturing companies have come together in a unified call for the UK Government to strengthen its support for industrial decarbonisation, warning that failure to act risks undermining the nation’s economic and energy security.

In a joint letter to the Chancellor and Secretary of State for Energy Security and Net Zero, the coalition praised the Government’s early steps toward decarbonising UK industry – including recent financial milestones for major carbon capture projects such as Eni’s Liverpool Bay CCS, Net Zero Teesside Power, and the Northern Endurance Partnership.

However, with the upcoming Spending Review being a pivotal moment, the signatories are urging the Government to go further. They are calling for policy certainty and funding to support Carbon Capture, Utilisation and Storage (CCUS), and hydrogen infrastructure across industrial clusters – particularly for projects in the next wave of development, including Track 2, Track-1 expansion and other projects that can deploy along a similar timeframe.

Decarbonising our industries stimulates significant economic growth with £26bn of private sector funding invested in the UK’s industrial heartlands by 2030, rising to £68bn by 2050 and creating £94bn cumulative GVA in the UK by 2050. However, industry needs the Government to show continued commitment if they are to continue to invest in the face of an uncertain future.

“It is vital that we decarbonise, not deindustrialise the UK’s industrial heartlands,” the letter states.

The group notes that while the UK has made impressive progress in reducing emissions, many of the most challenging industrial sectors to decarbonise – including cement, refining and chemicals – still lack the tools and infrastructure necessary to fully transition to a net zero future. Without further urgent support in the upcoming Spending Review, these industries risk decline, and could lead to the loss of thousands of skilled jobs and Britain’s broader industrial resilience.

Highlighting the recent job losses at the Grangemouth refinery and long-running pressures in British steel, the signatories warn that a lack of timely investment in decarbonisation of our industries could severely hinder domestic capabilities and impact targets such as the Government’s pledge to build 1.5 million homes during this Parliament.

The coalition is calling for:

• Delivery of the most mature clusters and projects across our industrial heartlands including the North-West, North-East, Humber and Scotland; in Track 2, Track-1 expansion and other advanced clusters delivering along the same timescales.
• Timely selection of CO₂ emitter projects alongside CO₂ infrastructure investment.
• A commitment to supporting decarbonisation on the same scale as the Clean Power by 2030 goal.

The letter emphasises that foundational industries stand ready to invest and innovate, but require a stable and supportive policy environment to do so. With the right backing, and working towards a self-sustaining sustainable business model that promotes growth and economic security, the UK can lead the way in low-carbon industrial production and secure its position as a clean energy superpower.

Olivia Powis, CEO of the CCSA said:

“The UK has taken important first steps on industrial decarbonisation, but we now need to build on that momentum. Industries across the country are ready to invest in carbon capture  but they need policy certainty and timely support to do so. At this Spending Review, the Government has a vital opportunity to show it is serious about delivering its net zero ambitions while safeguarding jobs, investment, and industrial competitiveness.”

Notes to Editor

• Read the open letter to the Chancellor and Secretary of State for Energy Security and Net Zero from 50 industry, union and energy leaders calling for urgent government action on industrial decarbonisation HERE
• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact price@ccsassociation.org
• For a briefing call on CCUS, please contact Sara Price on 07825235313 / price@ccsassociation.org
• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website HERE

About the Coalition

The joint letter represents a wide range of UK trade associations, manufacturing and energy sector leaders, and trade unions working together to ensure a just, secure and prosperous industrial transition to net zero.

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.

• The CCSA welcomes statements to link the EU and UK ETS as part of the EU-UK Reset Summit and continued regulatory exchanges on new energy technologies such as hydrogen, carbon capture utilisation and storage (CCUS) and biomethane.
• The CCSA looks forward to working with the UK Government and EU Commission on rapidly taking steps to remove the regulatory barriers to a European CO₂ storage market.
• The UK holds a third of Europe’s CO₂ storage capacity, presenting a huge economic export opportunity. Cross-border cooperation on a Europe-wide CO₂ storage market can help EU emitters in Europe using offshore CO₂ storage benefit from 28% reduction in transport and storage costs and provide significant economic benefits to the UK.

[London, 19 May] – Today, UK and EU officials met in London for a Summit aimed at establishing a new chapter in relations. Negotiators struck a deal on energy which included an agreement on working towards linkage of EU and UK Emissions Trading Schemes (ETS) and mutual technical and regulatory exchanges on new technologies including CCUS and hydrogen.

The Carbon Capture and Storage Association (CCSA) strongly welcomes these developments. Establishing a link between UK and EU ETS provides greater certainty for industry to decarbonise on both sides of the Channel at a lower cost. It removes barriers to trade and encourages investments in low-carbon technologies such as CCUS, a sector which both the UK and EU support.

A linked carbon market would ensure a level playing field in terms of carbon pricing, reducing the risk of competitive distortions and carbon leakage as well as lowering the overall cost of reaching net zero.

Cross-border cooperation aimed at creating a Europe-wide CO₂ storage market has the potential to bring down CO₂ transport storage costs by 28% for emitters located in the EU, as well as significantly bringing down emissions, as shown by this report. There are significant returns to be made from exporting the UK’s CO₂ storage potential, projected to be a £30bn global export market for the UK by 2050.

While these positive developments in energy cooperation between the EU and the UK are very much welcomed, the CCSA calls for the delivery of a comprehensive and robust Carbon Border Adjustment Mechanism (CBAM) to cover all sectors and industries including those currently out of scope. This includes refining, glass, and ceramics.

Urgent steps are also needed towards removing the regulatory barriers to a European-wide CO₂ storage market. By doing so, this will contribute to the reduction of emissions, achieve better value-for-money from CCUS projects and provide concrete support to the further deployment of CCUS technologies across the UK’s industrial heartlands.

Olivia Powis, CEO, said:

“The outcomes of the EU-UK Summit mark a pivotal moment for Europe’s climate ambition. A linked EU-UK Emissions Trading System alongside a comprehensive Carbon Border Adjustment Mechanism would not only enhance the efficiency of carbon pricing but also provide a clear, stable signal to industry, crucial for unlocking long-term investments in CCUS technologies. For sectors that are hard to decarbonise, CCUS will play a critical role in meeting net zero goals. A unified carbon market can reduce fragmentation, lower compliance costs, and help ensure that carbon abatement happens where it’s most cost-effective.”

“In the context of the EU’s Carbon Border Adjustment Mechanism, close alignment between the UK and EU on carbon pricing is vital to safeguard competitiveness and minimise trade friction. This is not just about environmental alignment, but also about economic and industrial strategy. A linked system, alongside urgently addressing the regulatory barriers to a European CO₂ market, will give the UK and EU a shared platform to lead on international carbon market development, demonstrating climate leadership on the global stage at a time when ambition and cooperation are more important than ever.”

Notes to Editors

• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact price@ccsassociation.org
• For a briefing call on CCUS, please contact Sara Price on 07825235313 / price@ccsassociation.org
• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Various press items can be found under “CCSA Press Pack” on the CCSA website HERE
• Read the CCSA’s report into ‘Accelerating a Europe-wide CO₂ storage market’ HERE

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s 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 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.

[End]

• The CCSA held its annual EU Conference on 14 May in Brussels, gathering more than 230 delegates
• Attendees discussed hot topics on the CCUS agenda, from CO₂ storage and transportation to the need for strong regulatory support and CCU cases
• How to scale up a market for CDR technologies also took a central role in the discussion
• Cooperation with third-party countries was highlighted, also in respect to next week’s EU-UK Summit

[Brussels, 16 May] – On 14 May, the Carbon Capture and Storage Association (CCSA) held its annual EU Conference in Brussels, gathering more than 230 delegates from across the CCUS value chain, including policymakers, industry leaders, and civil society organisations. The conference contributed to advance vital discussions on the role of CCUS in decarbonising European industry, maintaining competitiveness, and meeting the EU’s climate targets.

A panel on the role of the recently announced Clean Industrial Deal kicked off the day, with insights from MEP Jeannette Baljeu (Renew, NL) and Alexander Vink (Gasunie), Elena Leonardi (Cefic) and Paolo Testini (Snam, Ravenna CCS Project partner), who all agreed on the urgent need to decarbonise without deindustrialising. The message was clear: robust and pragmatic EU regulation must support the commercial deployment of carbon capture technologies to strengthen Europe’s industrial base.

The stage was then set for further discussions on projects presentations to highlight that CCUS is happening, as in the case of the Ravenna CCS Project in Southern Europe, presented by Luca Rossi (Eni), and a deep dive into Gasunie activities and the essential role of cooperation in a cross-border scenario. The conference continued with a panel discussion on the key topic of CO₂ transport, with speakers concluding that regulatory clarity and flexibility are very much needed to support market development and cross-border transport solutions. The discussion was also joined by Augustijn van Haasteren, CCUS Team leader at the European Commission’s DG ENER.

Finally, the focus shifted to a deep dive into Carbon Dioxide Removal (CDR) and the EU ETS, highlighting the importance of integrating compliance and voluntary carbon markets to scale solutions. Fabien Ramos, Carbon Removal Lead at DG CLIMA, also joined this panel and highlighted the current work of DG CLIMA on these topics. The day then concluded with a spotlight on Carbon Capture and Utilisation, especially the policy and financial incentives needed to give CO₂ a viable second life.

Thanks to the presence in the room of policymakers from both the EU and third countries, and conversations on the value of a Europe-wide CO₂ storage market, integrating EEA and third-party countries such as the UK, were held. This solution would be beneficial for EU emitters as they could access additional storage sites in the North Sea, bringing down costs and emissions. These conversations on international cooperation prove particularly effective, especially ahead of the EU-UK Summit, scheduled for 19 May in London.

Thierry Grauwels, EU Director, said:

“Today’s discussions clearly showed the momentum building around CCUS in Europe. As the CCSA’s new EU Director, I’m proud to join at such a pivotal moment, one where bold decisions are needed to turn ambition into delivery. From North Sea hubs to emerging Southern and Eastern European projects, we must now work together to build a pragmatic regulatory framework that enables deployment at scale. The commitment shown today by industry, policymakers and partners gives me confidence: the key to success really is in this room.”

Notes to Editors

For media enquiries please contact Francesco D’Apolito on 0039 3317311062 / francesco.dapolito@ccsassociation.org

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s 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 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.

Mark Sommerfeld, UK Director at the CCSA, said:

“The CCSA welcomes the Climate Change Committee’s (CCC) recognition of the vital role that Carbon Capture and Storage (CCS) must play in delivering net zero in Wales and across the UK.

We’re pleased to see clear support for progressing CCUS and hydrogen infrastructure in the South Wales Industrial Cluster and HyNet. Delivery of CCUS in these regions will be key to decarbonising Welsh industry, thereby protecting and creating jobs, while unleashing investment for the region.

CCUS is not just about cutting emissions — it secures the future of UK-made products. For key sectors like cement, refining and chemicals, which underpin construction and food production, net zero is an opportunity to lead in low-carbon manufacturing and keep operations in Wales and across the UK.

While the report suggests CCUS will contribute only modestly by 2033, we believe this underestimates its potential. With the right policy framework and timely access to infrastructure, CCUS can be deployed earlier to enable greater emission reductions for Wales’s industrial and power sectors, along with engineered carbon removals. The Government must now build on recent progress, providing confidence to the market in the upcoming spending review with confirmed support for expanding Track-1, advancing Track-2 and providing a clear route to market for further well-advanced industrial clusters in Wales and the UK. This is vital to give industry the confidence to invest and move forward.

There is no path to net zero without CCUS. Accelerating deployment now will cut emissions, protect jobs and position the UK as a global leader in low-carbon industry.”

Notes to Editor

• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org
• For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org
• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Download the press pack from the CCSA website under “CCSA 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.

Olivia Powis, CEO of the CCSA said,

“The 2050 net zero target is firmly rooted in science and based on the impact to the climate of unabated greenhouse gases. Research by the IPCC—the global authority on climate science – shows net zero by mid-century is essential to limit warming to 1.5°C and inaction will result in catastrophic economic, social and environmental costs.

The claim that climate action harms growth is false: studies prove decarbonisation drives prosperity. The CCSA’s own research shows that the Carbon Capture, Utilisation and Storage (CCUS) sector alone will add £94bn to the UK economy by 2050, create over 50,000 skilled jobs and unlock £26bn in private investment. And recent analysis by the Energy and Climate Intelligence Unit and the CBI shows the UK’s net zero economy is already growing significantly faster than the economy as a whole—three times faster—demonstrating that clean growth is not just possible, but already underway.

By transitioning to a low-carbon economy, the UK will foster innovation, enhance competitiveness and increase productivity. For critical foundational industries such as cement to build homes and chemicals to make fertilisers for food production, net zero represents an opportunity to compete in the low-carbon products market and keep operations in the UK.  

The Government must now build on recent progress by progressing Track-1 expansion, advancing Track-2 selections and supporting all other viable clusters on a similar timeline.

Net zero isn’t a cost—it’s an opportunity. It’s how we secure clean growth, resilient jobs and long-term competitiveness.

Notes to Editor

• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org
• For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org
• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Download the press pack from the CCSA website under “CCSA 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.

• Thierry Grauwels has been appointed as CCSA EU Director, starting in May 2025, following a 25+ years in the energy industry, across the value chain, covering gas, electricity, hydrogen and CO₂.
• Thierry’s appointment strengthens the CCSA’s mission to support CCUS development across Europe.
• In the past, Thierry has lead capex intensive projects, business development and financing, including CO₂ capture. He has a previous experience in Brussels.

[Brussels, 9 May] – Thierry Grauwels has been appointed as EU Director of the Carbon Capture and Storage Association (CCSA) and started in May.

Thierry brings 25+ years of experience in the energy market transformation and will lead the CCSA’s activities in Brussels related to the commercial deployment of large-scale integrated CCUS projects in Europe.

During his career, Thierry worked in the development of large, capital-intensive projects in gas infrastructure, power plants, and carbon capture projects. Additionally, Thierry has been involved in commercial, merger and acquisition, financing, and advocacy activities across the energy value chain, including power, hydrogen, gas and LNG.

Thierry joins at a critical time for the CCUS industry. The European Commission’s Clean Industrial Deal promises significant support to the development and deployment of CCUS technologies in the EU. This will allow for the creation of tens of thousands of new highly skilled jobs and protect thousands of existing jobs in critical industries like cement, chemicals, fertiliser and manufacturing.

The EU aims to capture 450 million tonnes of CO₂ annually by 2050 to achieve its net zero targets. To do so, it is crucial that CCUS technologies are deployed at scale across the continent as soon as possible. CCUS has the double benefits of allowing decarbonisation without deindustrialisation.

The CCSA has been working with European Institutions to secure the EU’s position as a world leader in CCUS and low carbon hydrogen production. The appointment of Thierry as EU Director provides the trade association with additional expertise and experience to drive forward CCUS to decarbonise EU industry, deliver energy security and create jobs in a new low-carbon economy.

We are also delighted to announce that Stefano Miriello will be appointed EU Deputy Director. In the previous months, Stefano has contributed to the growth of the CCSA’s EU office in his function as Head of EU External Affairs. Thierry and Stefano will work together to advance CCUS in Europe.

Thierry Grauwels said:

“I’m excited to join the CCSA team and help drive the deployment of such a crucial technology like CCUS to ensure energy security while decarbonising the economy.”

“With significant expertise related to the transformation of energy markets and the adaptation of corporate structures, I am keen to engage with industry leaders and policymakers to enable the CCUS market to take off in Europe.”

Olivia Powis, CEO of the CCSA said:

“We are thrilled to welcome Thierry to our team. His wealth of experience in the energy sector will bolster our team of experts, all of whom are committed to tackling climate change and seeing CCUS developed at pace across Europe to decarbonise – not deindustrialise – our critical industries and reduce emissions to reach climate neutrality.”

“With the EU CCUS industry at an exciting point in its development, Thierry’s expertise will have a significant role in advancing the CCSA’s mission and supporting our Members in driving this essential net zero transition technology.”

Notes to Editors

Thierry Grauwels Biography 

Since joining Shell in 1998, Thierry has held several business and market development positions in the European energy market. He focused on the newly liberalised energy markets, negotiated long term gas and LNG supply agreements and developed several positions in LNG regasification and power projects with hydrogen – Carbon Capture and Storage (CCS). He led Shell’s advocacy efforts to promote the role of gas in Europe. He unbundled the gas distribution company of Athens according to the EU requirements and framed the ownership restructuring.

Thierry joined Fluxys, Belgian gas TSO and became the CFO of DESFA after the successful partial privatisation of the company by SNAM, Enagas and Fluxys in 2018.

Before being appointed as EU director of the CCS association in Brussels, he headed the Benelux business unit of Hinicio. A boutique consultancy firm specialised in Hydrogen and its derivatives.

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s 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 London and Brussels. 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 115+ 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

Following the EU Gymnich talks that David Lammy, UK Foreign Secretary, attended in Poland today, the CCSA urges Ministers to include energy and products security at the UK-EU Summit on 19 May alongside defence.

Ahead of the EU Summit, CCSA CEO, Olivia Powis, said:

“Carbon Capture Utilisation and Storage (CCUS) has a critical role to play in delivering a reliable low-carbon energy system alongside renewables, while future-proofing our industries such as cement, glass, chemicals and refining by decarbonising their operations and safeguarding thousands of jobs across UK and Europe.   

But to do so, policymakers on both sides of the Channel must work together and commit to unlocking the considerable shared benefits of a Europe-wide CO₂ storage market. 

With over a third of Europe’s CO₂ storage capacity, the UK is well positioned to support emitters across the EU and EEA – reducing average storage costs for emitters by 20%, rising to 28% for emitters in the EU-27 countries.

Yet regulatory and policy barriers delay progress and lock emitters into higher storage costs. By agreeing mutual recognition of CCUS regulatory frameworks under the Trade and Cooperation Agreement, governments can enable a cost-effective CO₂ storage market. The CCSA calls on the UK Government and European Commission to commit to removing barriers to cross-border CO₂ transport and storage at the UK-EU Summit so that all industrial emitters across EU Member States, other EEA countries and the UK can benefit from CCUS.” 

[London, 1 May 2025] – The Carbon Capture & Storage Association (CCSA) today underscores the urgent need for clear government direction to advance the next phase of Carbon Capture, Usage, and Storage (CCUS) projects, following the publication of its report, Future Business Models and Allocation Frameworks.

The report highlights how collaboration between Government and industry can reduce costs, mitigate risks, and deliver economic value across the CCUS supply chain. It proposes a roadmap to transition the sector from early-stage public support to a self-sustaining, market-driven industry critical to achieving the UK’s net zero targets and creating and protecting thousands of jobs.

The CCSA stresses the importance of delivering existing projects—including Track-1 (initial clusters), Track-2 (next-phase clusters), Track-1 Expansion, and other mature clusters aiming to deliver along similar timescales—to unlock billions in private investment, revitalise industrial regions, and position the UK as a global CCUS leader. Success hinges on urgent government support for near-term clusters while laying the groundwork for long-term market stability.

The report identifies critical challenges and opportunities: :

• Evolve existing business models to ensure continuity, adapt to changing conditions, and strategically allocate support—enabling a market-led CCUS sector while maintaining necessary public backing.
• Improved market integration between capture projects and end markets.
• Support for innovation, including low-carbon product standards and Greenhouse Gas Removal (GGR) frameworks.
• Greater risk accepted by the private sector in return for appropriate financial returns to ease reliance on public funding for CO₂ transport and storage.
• More certainty around funding timelines and streamlined planning and permitting processes.

To ensure CCUS evolves into a sustainable, market-led sector, the report recommends:

• Clarifying the role of Government in long-term CCUS policy, regulation, and funding—moving toward reduced subsidies as markets mature.
• Improving value chain economics by strengthening carbon pricing, developing low-carbon product standards, and leveraging carbon dioxide removal market signals, with effective regulation where appropriate.
• Increasing pace and scale of delivery for CO₂ transport and storage through more flexible, commercially-led models—including non-pipeline options, cross-border storage and reduced regulatory barriers for expansion.

Mark Sommerfeld, UK Director of the CCSA, said:

“The UK’s CCUS industry is at a critical juncture. The successful delivery of the current project pipeline is essential, with government support urgently needed for Track-2, Track-1 Expansion, and other mature clusters operating on similar timelines. While the industry is actively collaborating with Government to establish the sector, it is equally important to lay the foundations for a self-sustaining future CCUS market. Achieving this will unlock cost reductions, lower investment risk and deliver long-term economic and environmental benefits for the UK.

To realise the full potential of the sector, we need long-term policy certainty, robust funding frameworks and a clear government strategy to build a thriving, competitive, and market-driven CCUS industry. This report is a blueprint for collaboration, and we look forward to working with all stakeholders to shape the future of CCUS in the UK.”

Chris Thackeray, Director and Global CCS Lead, Baringa, and CCSA Board Member, said:

“The UK has positioned itself as a global leader in CCUS policy and is set to deliver some of the first major privately financed CCS clusters. We now have an opportunity to maintain this momentum with increased pace of delivery at the scale required to achieve climate mitigation and exploit this incredible industrial opportunity for the UK. We now need a sharp focus on how future projects are economically incentivised. Close collaboration between industry and government will continue to be essential.

We should develop allocation models that build on the lessons from the initial projects and drive the transition to a self-sustaining industry, with a well thought through market transition that reduces the subsidy burden on government whilst maintaining an investible proposition.

Acting now will bring more long-term certainty for investors, reduce costs, and secure jobs across the UK’s industrial heartlands and exploit our massive offshore storage potential — giving them a clear route to market and a sustainable future.”

Download the briefing here.

Notes to Editors

Interview requests: To interview Mark Sommerfeld, UK Director, please contact press@ccsassociation.org

For media enquiries please contact Sara Price on 07825235313 / press@ccsassociation.org

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