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.

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