CCSA Statement on the Climate Change Committee’s 7th Carbon Budget Advice

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

[London, 12 December] – The Carbon Capture and Storage Association (CCSA) is urging the UK Government to accelerate the deployment of Carbon Capture, Utilisation & Storage (CCUS) technologies to meet the growing demand for reliable, low-carbon energy, especially during critical periods like the festive season.

From Christmas lights decorating 150,000 miles of streets to the millions of turkeys roasting in ovens, the holidays place immense strain on the UK’s energy systems. On Christmas Day alone, the nation typically uses about 402 GWh of electricity—enough to light the Eiffel Tower for 50 years or power Tesla cars for 1.2 billion miles around the equator.

While renewables like wind and solar are essential, their intermittent nature poses challenges during peak demand.

CCUS offers a vital solution by ensuring dispatchable, low-carbon power when weather conditions are unfavourable for renewables. By capturing and storing carbon emissions from gas-fired power stations, CCUS complements renewable generation and provides a reliable energy backbone for the UK, keeping homes warm and lights shining during the holidays.

Beyond the grid, CCUS helps decarbonise hard-to-abate industries, supporting the production of goods vital to holiday traditions, from toys under the tree to food on our plates. By enabling the creation of low-carbon fertilisers, CCUS contributes to sustainable agriculture, ensuring we can continue to enjoy festive feasts without harming the planet.

CCUS for the festive period in 12 facts

As we look ahead to the future of CCUS, here are 12 facts that highlight the progress, potential, and promise of this critical technology.

1. One funding commitment of £21.7 billion is enabling the UK to establish its first CCUS Clusters.
2. Two projects reaching financial close – Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP).
3. £20- £30 billion of private investment is expected to flow into CCUS projects by 2030.
4. Four CCUS Clusters across Track-1 and Track-2 are planned, including committed funding for Track-1 clusters.
5. The UK has five years to achieve Clean Power by 2030 and transform its energy systems, and CCUS will play an important role in meeting this target.
6. The 6th Carbon Budget sets a target to reduce emissions, with CCUS playing a key role in this and upcoming carbon budgets. At COP29, the Prime Minister announced an updated target of 81% emissions reduction by 2035.
7. 77,000 jobs will be created through CCUS projects, supporting economic growth and decarbonisation.
8. The 8.5 million tonnes of CO₂ that HyNet and the East Coast Cluster (Track-1) are posed to capture –equivalent to taking nearly 4 million cars off the road.
9. £960 million had been originally allocated to the Green Industries Growth Accelerator to spur CCUS innovation and deployment.
10. There are 10.5 GW of Power CCS projects currently in the pipeline, reinforcing the UK’s clean energy ambitions.
11. 11,000 additional direct jobs are projected in the greenhouse gas removal (GGR) sector.
12. Twelve CCUS Clusters are in various stages of development across the UK, ensuring a robust, nationwide impact.

Olivia Powis, CEO of the CCSA, said:

“At this time of year, it is easy to take for granted our power system as we focus on the festive period and presents under the Christmas tree. But with ambitious net zero targets, we need to change the way we use electricity and the products that we buy, including producing power and goods in a way that doesn’t result in more emissions with the help of CCUS. In the future, this important technology will play an critical role in bringing a low-carbon sparkle to Christmas.”

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

• The CCSA welcomes news of Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) reaching financial close.
• NZT Power is anticipated to be the world’s first commercial scale gas-fired power station with carbon capture technology.
• The project now moves to the execution phase, with the potential to generate up to 742 MW of low carbon electricity, equivalent to the average annual electricity requirements of more than 1 million UK homes.
• The CCSA urges the Government to continue to prioritise deployment of CCUS to ensure that net zero targets are met.

[London, 10 December] – Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) have reached financial close and now move into execution phase. This represents a significant milestone for the carbon capture, utilisation and storage (CCUS) industry in the UK.

By deploying this vital technology, heavy industries will be able to decarbonise their operations, while low-carbon dispatchable power is generated for when the wind isn’t blowing and the sun isn’t shining.

Importantly for industrial heartlands such as Teesside, CCUS will create thousands of new low-carbon jobs and establish the region as a globally-competitive low carbon hub for industry and innovation.

NZT Power is set to be the world’s first commercial scale gas-fired power station with carbon capture technology. It is at the heart of plans to decarbonise Teesside, where heavy industries will share the carbon dioxide (CO₂) transportation and storage infrastructure, developed by the Northern Endurance Partnership (NEP), to serve the East Coast Cluster.

The power station will generate up to 742 MW of electricity, which equivalent to the average annual electricity requirements of more than 1 million UK homes, with up to two million tonnes of CO₂ captured and stored a year. This is a significant contribution toward the UK reaching its net zero by 2050 target.

News of financial close for NZT and NEP comes at a crucial time as the UK announced at COP29 last month a target of cutting emissions by 81% by 2035, while the Prime Minster last week recommitted to the clean power by 2030 target.

If the UK is to meet these targets, in line with the Climate Change Committee (CCC) ambition for the UK to capture and store 20-30 million tonnes (Mt) of CO₂ per year by 2030 to meet our Carbon budgets, CCUS needs to be deployed at scale. The CCSA urges the Government to continue to prioritise clusters and projects, particularly as countries around the world are competing with the UK for investment to build CCUS.

Olivia Powis, Chief Executive Officer at the CCSA said:

“News of financial close for NZT Power and NEP is fantastic for both the CCUS industry and in tackling climate change. Reducing emissions from power generation and industrial processes is of vital importance to reaching the ambitious targets set by the Government to decarbonise heavy industry and the power system. Gas power plants with carbon capture technology are designated as a crucial source of low carbon energy and will enable more renewables onto the system. NZT Power will provide stable, flexible electricity generation to the Teesside industries that rely on low carbon energy sources for decarbonisation. Investing in the CO₂ transport and storage infrastructure will send the signals to investors and other capture projects that the UK is serious about meeting our net zero targets and providing our industries with a clear route to decarbonisation.”

“Both the Government and industry now need to ensure this momentum continues, maximising the opportunity that CCUS presents to decarbonise our industries, meet net zero targets and invest in low carbon technologies and skills. This is done by continuing to prioritise the deployment for the clusters and projects that will follow Teesside. This will drive investment in the supply chain, creating and protecting vital jobs. Failure to do so will make it significantly difficult to meet net zero targets.”

Energy Secretary Ed Miliband said:

“This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East. This is the Government’s mission to make the UK a clean energy superpower in action- replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”

Ian Hunter, Managing Director, Net Zero Teesside Power, said: 

“Today’s announcement is the culmination of years of work to make Net Zero Teesside Power a reality. As the project progresses into the execution phase, we look forward to delivering on our ambition to create and support thousands of jobs whilst generating flexible, dispatchable low-carbon power for the UK.”

Chris Daykin, Director, Northern Endurance Partnership, said:

“This is a landmark moment in the development of CCS infrastructure and the UK’s ambition to reach net zero emissions by 2050. With joint backing from shareholders and the UK Government, Northern Endurance Partnership is entering its execution phase ahead of start-up expected in 2028”.

Notes to Editors

Interview requests: To interview Olivia Powis, Chief Executive of the CCSA 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.

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.

[End]

[Brussels, 4 December] – The Carbon Capture and Storage Association (CCSA), the leading CCUS trade association in Europe, has released the report “Accelerating a Europe-wide CO₂ storage market”.

The report, based on modelling and analysis by Xodus Group – is clear: enabling cross-border CO₂ transport and storage is critical for reducing emissions efficiently and on time. The European Commission and national governments can make this a reality.

Expanding the CO₂ market across Europe, including the UK, is an effective way to lower emissions and storage costs. As of right now, policy remains the largest obstacle to transporting CO₂ across the EU-UK border, which would otherwise be technically feasible.

Cross-border CO₂ transport and storage would create economic benefits for industrial emitters across EU Member States, other EEA countries and the UK, supporting existing and new jobs across Europe.

To do so, the European Commission and the UK Government can take concrete actions that would send a strong signal to European businesses. These actions are:

• Establish a bilateral agreement between the EU and the UK under the Trade and Cooperation Agreement (TCA) to enable mutual recognition of each jurisdiction’s CCS regulatory regime.
• Amend EU and UK Emission Trading Schemes to accommodate CO₂ storage outside the EU and EEA.

As CCUS projects progress in the EU, Norway and the UK – with the first sites beginning operations as soon as 2026 – enabling cross-border CO₂ transport and storage would make these systems more resilient.

We need to act quickly before higher-cost options are locked in and the opportunity is lost.

Olivia Powis, CEO of the CCSA said:

“A Europe-wide CO₂ market is within reach, but policies are standing in the way. We can cut storage costs by 20% and save billions annually if the EU and UK break down these barriers, and make cross-border CO₂ storage happen now. The future of the European industry and climate action depends on it.”

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 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

[ENDS]

• Minister Gustafsson confirms that Government view carbon capture as indispensable, noting its role for industries that can’t easily decarbonise, such as cement. 
• The UK has the right skills and infrastructure to lead in carbon capture and storage.
• The UK Government is keen to support more CCUS projects across the UK and will make more announcements after the Spending Review in the Spring.  

[Thursday 28 November, London] – Yesterday, Baroness Gustafsson, Minister for Investment, addressed CCSA members at the association’s Annual General Meeting. The Minister reconfirmed the Government’s continued commitment to deploy Carbon Capture, Utilisation and Storage (CCUS) across the UK.   

Having only been in the role for 6-weeks, Minister Gustafsson acknowledged the level of ambition within the CCUS sector to deploy projects that will decarbonise heavy industries. The Minister noted in particular how CCUS is “indispensable” for sectors such as cement production.  

With UK cement critical for building new homes, hospitals, and schools, it is important to find a way to continue production without emitting more CO₂ into the atmosphere. For industries such as cement, chemicals and manufacturing, as well as energy from waste, CCUS is the most viable route to decarbonisation. 

Minster Gustafsson reinforced the UK Government’s commitment to drive investment into the UK and support the growth of the UK CCUS sector. The CCSA estimates that the private sector will invest between £20 to £30 billion in projects across the UK’s industrial heartlands by 2030 if CCUS is deployed at scale.  

The UK is fortunate to have a world-leading energy industry with unique geological expertise, which the Minister recognised as a competitive advantage in the Government’s ambition of global climate leadership. 

As noted by the Minister, the Government’s mission driven approach to meeting net zero targets includes CCUS as a central feature, and the CCSA will continue to work with the Government to unlock the full potential of the CCUS industry.   

At the AGM meeting, members voted for the four successful candidates elected to sit on the Board for the coming year: 

• Ruth Herbert, Managing Director, Business Development & Strategic Initiatives, EET 

• Louise Matthias, Global Head of Government Relations and Public Policy, Climeworks 

• Sophia Northridge, Head of UK Region & Business Development, Equinor 

• Chris Thackeray, Global CCUS Lead, Baringa 

The CCSA Board now comprises 50% women, a figure that the CCSA is very proud of and highlights the great female leaders within the CCUS industry. More details on the Association’s Board members can be found here.  

Olivia Powis, CEO of the CCSA said:  

“Minister Gustafsson brings a renewed sense of energy and ambition to the CCUS investment landscape. It’s clear that this Government has great aspirations when it comes to global climate leadership and promoting investment into the UK’s low-carbon economy” 

“I was very much encouraged by the Minister’s words that CCUS is indispensable. She is absolutely correct, especially for hard to abate sectors such as cement, chemicals and manufacturing. Without carbon capture, these industries will not be able to decarbonise their operations or remain competitive in the global market.  

“I look forward to continuing to work with Minster Gustafsson and the Office for Investment to unlock routes to market for CCUS projects right across the length and breadth of the UK.” 

Notes to Editor 

Photos 

• Left hand: Olivia Powis, CEO of the CCSA 
• Right hand: Minister Gustafsson 

Please see the photo below of the CCSA’s new board members, as well as the CCSA’s LinkedIn post welcoming the new board members here. 

Download high-res versions of these photos here.

Please credit the CCSA 

[Brussels, 27 November] – European Commission President Ursula von der Leyen vowed to publish a new Clean Industrial Deal in the first 100 days of her new mandate. The Deal will be crucial to ensuring not only that European industries can decarbonise, but also create the conditions necessary for them to remain in Europe.

As the EU faces industrial decline – with hundreds of thousands of jobs being lost – and the goal of net-zero emissions by 2050 on the horizon, the Clean Industrial Deal is tasked with the dual ambition of reversing deindustrialisation and accelerating decarbonisation. CCUS technologies emerge as crucial solutions to both these challenges: As stated at the Clean Transition Dialogue[1] in March, reversing deindustrialisation while reaching climate targets is not possible without investing in carbon capture. Therefore, the Clean Industrial Deal must cover CCUS.

The Carbon Capture and Storage Association (CCSA) – the largest European CCUS trade association, representing more than 120 members across the value chain – praises the European Commission for its strong support for CCUS deployment. The introduction of important pieces of EU legislation, such as the Industrial Carbon Management Strategy, outline clear objectives for the deployment of CCUS. Similarly, the Innovation Fund backs many CCUS projects across the EU. However, more needs to be done. If we do not want to lag behind countries forging ahead, like China or the United States, the EU needs to close the funding gap for CCS projects, which, according to the Industrial Carbon Management Strategy, could reach €10 billion by 2030[2].

Olivia Powis, CCSA CEO, said:

“Congratulations to the new College of Commissioners on their appointments, with special recognition to Executive Vice-Presidents Ribera and Séjourné, as well as Commissioners Hoekstra and Jørgensen. We look forward to close cooperation and collaboration in support of delivering an effective Clean Industrial Deal.”

“To reverse Europe’s deindustrialisation and reach net zero, the European Union must increase support in a stable and supportive environment for large-scale investments in clean technologies like CCUS. CCUS is the ace up our sleeve for a cleaner, competitive future. Time to deal it in by putting CCUS at the heart of the Clean Industrial Deal: let’s make this the moment we lead the world in building a clean, industrial powerhouse.”

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 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

References:
(1) – (European Commission). (2024). The clean transition dialogues – stocktaking / A strong European industry for a sustainable Europe. Retrieved from https://commission.europa.eu/publications/clean-transition-dialogues-stocktaking-strong-european-industry-sustainable-europe_en on 27 November 2024.

(2) – (European Commission). (2024). Industrial Carbon Management Strategy. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52024DC0062 on 27 November 2024.

[ENDS]

• The UK’s leadership in CCUS deployment through its Cluster approach and leading regulatory framework, offers a model for other nations aiming to scale CCUS

• The UK’s offshore carbon storage capacity exceeds national needs, opening opportunities for international collaboration

• Cross-border CO₂ storage agreements and a long-term allocation framework can create certainty for investors and drive progress in industrial decarbonisation

[London, 20 November] –Speaking at a COP29 side event in Baku, Azerbaijan, Olivia Powis, CEO of the CCSA, emphasised the critical role of Carbon Capture, Utilisation, and Storage (CCUS) technologies in reducing global emissions. She highlighted the UK’s significant offshore carbon storage capacity, which exceeds national requirements, as a potential solution for international CO₂ storage needs, fostering global collaboration in emissions reduction.

Addressing a panel alongside US Dept of Energy, IEA GHG, University of Texas at Austin, Bellona, and the International CCS Knowledge Centre, Olivia addressed the financial and technical challenges of scaling Carbon Capture and Storage (CCS) technologies globally.

Olivia explained that in the UK, the CCUS Cluster approach is aimed at providing the most cost-effective solution with capture projects sharing CO₂ transport and storage infrastructure. As the industry moves forward, we need to move towards a competitive, market-based approach with a regular allocation framework, providing long-term visibility for developers and the supply chain and opening up a European cross-border CO₂ storage market.

The UK has committed to deploying CCUS across industrial regions as part of its ambitious goal to reduce greenhouse gas emissions by 81% by 2035. The UK’s leadership in this field offers valuable lessons for other nations striving to scale up CCUS deployment.

At COP29, Olivia detailed the UK’s leadership in CCUS deployment, offering a model for other nations aiming to scale CCUS. Collaboration between nations is essential for building trust and scaling CCUS effectively, with new projects learning from past experiences.

As global economies phase out the use of fossil fuels and drive progress in industrial decarbonisation, governments need to invest in and deploy all available technologies to transition to a low-carbon economy. CCUS is poised to play a central role in this effort, working alongside other green technologies.

With 2024 projected to be the first year global warming surpasses 1.5°C – the threshold set by the Paris Agreement – the urgency to deploy CCUS and other green technologies has never been greater. This year alone has starkly demonstrated the effects of climate change, with Europe and other regions facing unprecedented loss of life, economic upheaval, and ecological destruction from severe flooding, hurricanes, wildfires, and heatwaves.

The advantages of CCUS are clear. As long as we rely on gas-fired power stations to provide energy when renewable power is low, and continue to use cement to build hospitals, and schools, and chemicals such as fertilisers for food production, we need to find a way to do this without emitting more CO₂ into the atmosphere. For many of these industries, CCUS is the only option and a critical lifeline to support their decarbonisation.

Olivia Powis, CEO of the CCSA said:

“COP29 provided a crucial platform to share insights, address barriers, and showcase the opportunities for scaling CCUS technologies globally. The UK’s leadership in CCUS, combined with international collaboration and innovative financing solutions, will be key to ensuring CCUS plays its full role in global decarbonisation efforts.”

“What we need now is rapid deployment. Industry has already made significant investments in developing CCS projects, particularly in the UK, and with the right regulatory frameworks and government support, we can unlock even more potential. To meet our ambitious climate goals, it’s essential that we move from planning to action and accelerate the development of these critical technologies. The time to act is now.”

Notes to Editors

Key Takeaways from COP29 CCS Financing Event:

Moderated by Tim Dixon of IEAGHG, the side event at COP29 brought together experts to explore pathways for scaling CCS globally.

• Scaling CCS in Emerging Economies
Barriers like high capital costs, limited infrastructure, and regulatory challenges were discussed. Success stories, such as Trinidad and Tobago’s Technology Needs Assessment and Alberta’s TIER system, highlighted how targeted policies and financing can drive CCS progress.

• Global CCS Momentum
Brad Crabtree from the US Department of Energy shared that over 600 CCS projects are in development worldwide, with US tax incentives serving as a model for cost reduction and broader deployment.

• Innovative Financing Solutions
Experts highlighted the importance of mechanisms beyond direct subsidies, including carbon credit trading and international collaboration. Knowledge sharing, as exemplified by the International CCS Knowledge Centre, was noted as essential for effective project scaling.

• The Role of COP29 in Climate Finance
This event took place in the context of COP29’s critical discussions on climate finance, including the establishment of a new collective quantified goal to replace the current $100 billion annual target. Participants also highlighted the importance of operationalising the Loss and Damage Fund, which could support emerging economies in developing CCS projects.

Panellists:
• Tim Dixon – General Manager and Director, IEA Greenhouse Gas R&D Programme (IEAGHG) (Moderator)
• Brad Crabtree – Assistant Secretary, Office of Fossil Energy and Carbon Management (FECM), US Department of Energy
• Katherine Romanak – Researcher, University of Texas at Austin
• Olivia Powis – Chief Executive Officer (CEO), Carbon Capture and Storage Association (CCSA)
• James Fann – President and CEO, International CCS Knowledge Centre
• Olav Øye – Policy Adviser, Bellona Environmental Foundation (Bellona)
• Clarine Ovando-Lacroux – Representative, UN Environment Programme Copenhagen Climate Centre (UNEP-CCC)
• Donneil Cain – Representative, Caribbean Community Climate Change Centre (CCCCC)

This joint side event was hosted by the CCSA, IEAGHG, University of Texas at Austin, Bellona, and the International CCS Knowledge Centre. The event underscored that progress on Article 6.4 of the Paris Agreement could further reduce costs and facilitate international cooperation in CCS deployment.

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

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