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:
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
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.