CCSA Statement: Response to Conservative Party’s Position on Net Zero

The CCSA’s CEO Olivia Powis responds to the Conservative Party’s revised position on net zero. This follows Party Leader Kemi Badenoch’s speech where she put forward that it would be “impossible” for the UK to reach net zero by 2050 and subsequent commentary from climate champions rebutting the change of position.

Read Olivia’s full response below:

“Net zero by 2050 is absolutely achievable and will drive economic growth, particularly through technologies such as Carbon Capture, Utilisation and Storage (CCUS). Legislating on net zero has driven investment – and despite pressures on financing, global investment in clean energy was set to reach USD 2 trillion in 2024 almost double the amount going to fossil fuels. In 2015, the ratio of clean power to unabated fossil fuel power investments was roughly 2:1 and in 2024, this ratio was set to reach 10:1. Having a clear target galvanises action and investments in a low carbon economy, which will benefit industry, civil society and our local industrial regions.”

“Net zero is crucial not only for tackling climate change but generating economic growth. Our analysis shows that by delivering all CCUS clusters and projects across the UK, over 50,000 jobs could be generated, £26bn in private investment attracted into the UK and £94bn in GVA contributed by 2050.”

“It is through the deployment of technologies like CCUS that the UK will be able to scale up domestic energy production, safeguard our foundational industries and produce low-carbon projects for the global market, all by 2050. It has been encouraging that leading Conservative climate champions such as Rt Hon Chris Skidmore, former Energy Minster, and John Gummer, Rt Hon The Lord Deben, former Chair of the Climate Change Committee, continue to emphasise the need to stay the course on net zero. The scientific evidence is clear on why it’s needed and if the UK economy is to grow, demonstrating climate leadership in action will continue to attract significant sums of green investment.”

The recent publication of nine low-carbon and renewable options for Grangemouth marks an important step towards transforming the region into a green manufacturing hub.

With a £7.5 billion investment needed to transform the site, CCUS will be key to successfully delivering these projects – including the production of sustainable aviation fuel (SAF) and the development of green hydrogen facilities to support the UK’s net zero ambitions.

To ensure the success of these initiatives, the rapid deployment of CCUS technologies is vital. CCUS will play a crucial role in decarbonising industrial heartlands like Grangemouth, facilitating the transition of highly skilled jobs into the low-carbon economy. By leveraging the UK’s expertise from the North Sea oil and gas sector, we can solidify our position as a global leader in climate action.

Read our UK Director, Mark Sommerfeld’s, full statement below:

“We welcome publication of the nine low-carbon and renewable options for Grangemouth’s future. CCUS has an important role to play in the successful delivery of these projects. In order to decarbonise industrial heartlands like Grangemouth and transition highly skilled jobs into the low-carbon economy, it’s critical that capture projects are rolled out at speed.”

“This allows the UK to build on the expertise gained from North Sea oil and gas sector and secure the UK’s position as a global leader in climate action.”

The CCSA welcomes the launch of the Celtic Freeport. This is a transformative opportunity for South West Wales and will drive the region’s transition to a low-carbon economy, creating high-quality jobs, boosting economic growth, and delivering the UK’s net zero ambitions.

Welcoming the launch CCSA UK Director, Mark Sommerfield, recently said:
“The launch of the Celtic Freeport marks a significant step towards unlocking Wales’ industrial decarbonisation potential. By providing the infrastructure and investment needed to deploy carbon capture and storage at scale, the Freeport will support the transition of key industries, create high-quality jobs, and help position Wales as a leader in low-carbon innovation. The CCSA looks forward to working with the Westminster and Welsh Governments as well as the industry to ensure CCUS plays a central role in delivering the Freeport’s vision and driving long-term economic and environmental benefits for South West Wales and beyond.“

Overview 

In February 2025, the CCSA submitted a response to the Welsh Government’s preferred policy on carbon capture, utilisation and storage (CCUS) consultation.  

The consultation explored the challenges and opportunities of CCUS in Wales; the potential for CCUS to support Welsh decarbonisation goals, whilst retaining sustainable industry within Wales; and outlined the Welsh Government’s preferred policy position at this time. 

The Welsh Government’s key policy principles focus on primarily achieving decarbonisation through sustainable methods and reducing fossil fuel reliance, whilst fostering long-term decarbonisation and economic growth. The policy position outlined that CCUS should be supported where:  

• it makes a clear contribution to decarbonisation and the economy,  

• there are no reasonable alternatives to reduce emissions, and  

• its deployment does not unnecessarily prolong the use of fossil fuels. 

Why does it Matter? 

The launch of this consultation marks a crucial step in recognising the role that CCUS can play in the decarbonisation of Wales and raising public awareness of the technology’s role in the wider net zero transition.  

Three CCUS clusters are currently looking to deploy either wholly or partially in Wales: HyNet North West, the South Wales Industrial Cluster (SWIC) and 7CO₂, with six corresponding capture projects: Parc Adfer, Padeswood Cement Works CCS, Connah’s Quay Low Carbon Power Project, Uskmouth Power Station Carbon Capture, Trident Park Energy Recovery Facility, and the Pembroke Power Station Decarbonisation project. These projects require the support of the Welsh Government to ensure they become operational and fully achieve their decarbonisation potential. 

CCSA Position 

Disagreement with the Preferred Policy Position 

The consultation phrasing of “emission reduction methods that avoid the creation of emissions is preferable to CCUS, where such methods are technically and economically feasible”, and the need to “eliminate all need for capture and storage” is challenging for the CCSA to fully agree with. CCUS has been classified as an “unavoidable” technology if we are to achieve our global net zero ambitions by both the Climate Change Committee and the Intergovernmental Panel on Climate Change. The preferred policy position also misaligns with the established well-being goals and proposals outlined in Net Zero Wales Carbon Budget 2 (2021-2025).   

CCUS is crucial for decarbonising hard-to-abate industries such as cement and lime, enabling low-carbon products production, power generation, and negative emissions. Despite extensive evidence supporting CCUS, the Welsh Government’s hesitation contrasts with the advice set out by the IPCC, CCC, and numerous independent experts, potentially delaying critical market progress in Wales. As a result, the CCSA does not fully support the Welsh Government’s current policy position.  

Furthermore, the CCSA set out that the current policy places a burden on developers to make the case for CCUS projects over other low-carbon technologies in the absence of clear criteria and guidance on how this will be judged. 

How CCUS Can Boost Welsh Opportunities 

CCUS represents a significant opportunity for Wales, particularly as around 90% of Welsh energy is currently derived from fossil fuels. Modelling suggests that by 2050, using CCUS could reduce Welsh industry emissions by 5-6 million tonnes of carbon dioxide (CO2) equivalent (MtCO2e), compared to scenarios without CCUS. 

Economically, CCUS could bring substantial benefits to Wales. By 2030, CCUS could attract up to £26 billion in private investment to the UK with Wales set to share in these gains. The UK is well-positioned to lead the global market, with nearly one-third of Europe’s total storage capacity. Welsh focused research also suggests offshore storage in the East Irish Sea is a strong opportunity for Welsh carbon dioxide (CO2) storage. 

Incorporating CCUS aligns with several important Welsh principles, such as the Well-being of Future Generations (Wales) Act 2015, but also the Environment (Wales) Act 2016. Additionally, CCUS can drive investment in pioneering technology fostering growth and job creation in Welsh heartlands –helping to support Welsh innovation goals. Not only will this encourage locals to stay, thereby helping to protect Welsh culture and language, but it will also help to engage with Welsh communities and bring them on the journey to net zero.  

Supporting policies and actions are crucial for the success of current and future projects. These include the implementation of pipeline and non-pipeline transport (NPT) of CO2, addressing regulatory barriers, streamlining of planning and permitting processes, and the need for clear distinctions between the roles of the UK and Welsh Governments to ensure that developers understand each government’s responsibilities, although continual collaboration and alignment will be key. 

Moving Forward and Next Steps 

Based on the outcome of the consultation, the preferred policy position will be finalised and presented in a Ministerial written statement to the Senedd. It will outline the policy objective for CCUS and will be incorporated into future editions of Planning Policy Wales and Net Zero Wales Carbon Budgets.  

Detailed guidance on implementing the policy will then be developed for planning offices and other decision-makers. While the preferred policy position will set out strategic objectives, it will not offer specific advice on how to apply them. As a result, further guidance will clarify how the policy works in practice and outline the types of evidence required from developers and decision-makers. 

Clear policy guidance will provide demand certainty for CCUS, enabling Welsh decarbonisation stakeholders and project developers to move forward with confidence. CCUS is vital to Welsh net zero ambitions, and the CCSA is eager for the Welsh Government seize this opportunity. 

The CCSA welcomes the introduction of the Planning and Infrastructure Bill to UK Parliament today. Considerable opportunities exist to streamline the planning system; a goal which will be essential for the development of Carbon Capture, Utilisation and Storage (CCUS) clusters and other key infrastructure, supporting the UK’s industrial strategy and net zero ambitions.

On behalf of the CCSA, our UK Director, Mark Sommerfeld, said:

“The CCSA welcomes the introduction of the Planning and Infrastructure Bill, which is a key step in unlocking infrastructure critical to delivering net zero. Considerable opportunities exist to streamline the planning system; a goal which will be essential for the efficient development of carbon capture, utilisation and storage (CCUS) clusters and other vital infrastructure across the UK in line with the Government’s industrial and net zero ambitions.”

“The Government’s commitment to fast-track major infrastructure projects, including CCUS, as part of its ambition to accelerate clean energy growth is extremely welcome. Accelerating CCUS deployment will be vital for decarbonising industry, providing low-carbon power, and driving economic growth. Removing planning barriers will help reduce costs, unlock over 50,000 skilled jobs, attract £26bn in private investment by 2030, and ensure the UK remains a global leader in clean technologies – while decarbonising heavy industry and securing reliable clean power for millions of homes.”

“As outlined in our recent Cost Reduction Report, streamlining the planning system is critical to reducing the cost of CCUS deployment. Faster project delivery will help secure value for money, scale up the CCUS sector, and strengthen the UK’s low-carbon energy security.”

“We also welcome reforms to the electricity grid, which are essential to delivering clean, secure, and affordable power. The Government’s ambition to make the UK a clean energy superpower must prioritise removing planning barriers for CCUS infrastructure to turn this vision into reality.”

• New report shows cost reductions for carbon capture can be achieved by learning from first mover projects, delivering economies of scale, growing UK supply chains and promoting industry collaboration to reduce costs
• Government must act swiftly to deploy CCUS across the UK’s industrial heartlands or risk missing our net zero targets
  
• The Climate Change Committee see that there is no route to net zero without CCUS

[London, 4 March] –The Carbon Capture and Storage Association (CCSA) publishes cost reduction recommendations, following the Climate Change Committee’s Seventh Carbon Budget Advice, which made clear there is no route to net zero without CCUS.  

Today’s report identifies the key levers to deliver cost reductions while scaling up the CCUS sector. This will ensure value for money, whilst delivering economic growth for the UK, achieving net zero and an affordable and secure energy system.  

The technology underpins decarbonisation of multiple UK sectors including; clean power generation, low-carbon fuel production, industrial decarbonisation and carbon removals.  

Levers include accelerate learnings from first mover projects, delivering economies of scale and maximising the use of infrastructure, growing UK supply chains and promoting industry collaboration to reduce costs.  

The Government has already taken significant steps to establish the first two CCUS clusters. This momentum needs to be maintained to deliver the next set of projects so that a critical mass is realised to achieve these future cost reductions. 

The most immediate step is to enable CCUS projects to move forward that have already been selected and invested millions of pounds at risk in our industrial heartlands. To do this, Government must commit funding to deliver Track-1, Track-2 and Track-1 Expansion projects, alongside other CCUS projects that deliver on the same timescales. 

The report outlines three further key recommendations for the Government to act upon that will enable cost reductions to be realised by industry. These include: 

• Refine the approach to future funding allocation: Learning from Track-1, the next phase of CCUS funding must improve the risk-sharing between parties and optimise the full value chain; from supply chain – CO₂ capture project – transporting the CO₂ – permanent CO₂ storage, without any delay to the allocation process. The Government must also commit to regular future allocation rounds, as we saw in offshore wind, to signal the scale and timing of future opportunities to investors, industry and the supply chain, which will drive down costs. 

• Accelerating delivery of comprehensive carbon markets both in the UK and internationally: The UK must efficiently implement its planned expansion of the UK Emissions Trading Scheme (ETS), introduce a UK Carbon Border Adjustment Mechanism (CBAM), and develop cross-border CO₂ transport and storage markets. Strong support should also be given to protect sectors from carbon leakage, especially those not covered by the proposed UK CBAM. 

• Leveraging public finance through GB Energy and National Wealth Fund: Targeted public finance mechanisms should be used to de-risk first-of-a-kind projects, ensuring sustainable funding that attracts further private investment in the medium to longer term.  

Acting now on these recommendations will establish an industry that provides energy and low carbon product security as well as delivering substantial economic growth. The CCUS industry is projected to create 50,000 skilled jobs, unlock £94 bn of cumulative GVA in the UK and CO₂ storage exports generate potential revenues of £30 billion per year – all by 2050. 

You can download the report here.

Mark Sommerfeld, UK Director, said:  

“Establishing a strong CCUS industry involves delivering cost reductions as the sector grows. To this end, the CCSA, with our members, has identified key levers that will drive down costs over time as more and more projects are delivered.”  

“Getting spades in the ground for the first CCUS clusters will provide other projects with important lessons and work towards strengthening the value chain. This is critical as we work to achieve economies of scale that will foster innovation and promote collaboration in contracting and supply chains. In doing so, we will be able to realise efficiencies and strengthen investor confidence in the industry, ultimately lowering the cost of delivering and operating CCUS across the UK’s industrial heartlands.” 

“Government policy plays a crucial role in shaping this future. Implementing the recommendations in this report will reinforce the economic case for CCUS and activate these levers. Most importantly, the Government must sustain momentum by providing long-term certainty and commit funding to the already-selected CCUS projects and the broader pipeline. Companies have already invested millions in the UK’s industrial heartlands and require policy certainty to see the CCUS industry really take off. Acting now will not only reduce costs in the future but also cement the UKs position as global leader in CCUS.”  

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

[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

[End]

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