CCSA Statement on the Publication of the Carbon Budget and Growth Delivery Plan

Olivia Powis, CEO of the CCSA, said:

“Today’s publication of the Carbon Budget and Growth Delivery Plan marks an important milestone in the UK’s net zero journey. It reaffirms that CCUS, including GGRs, forms part of the most cost-effective route to net zero and represents a significant economic opportunity – decarbonising industry and power in a way that drives growth.

We particularly welcome the Government’s continued commitment to key CCUS clusters and projects – HyNet, the East Coast Cluster, Acorn, Viking, and the Peak Cluster – which will play a central role in delivering CO₂ emissions reductions through CB6, as well as the need to maintain momentum for further clusters to enable delivery of CB7 and beyond.

Delivering this plan will require close collaboration between Government and industry to unlock private investment, accelerate project deployment, and maintain the UK’s global leadership in low-carbon innovation. The CCSA looks forward to continuing to work with DESNZ and partners across the value chain to turn these ambitions into delivery that drives growth, energy security and lasting climate benefits across the UK.”

Today the Department for Energy Security and Net Zero (DESNZ) published the Independent Review of Greenhouse Gas Removals (GGRs), chaired by Dr Alan Whitehead CBE. The review considers how GGR options – including large-scale power bioenergy with carbon capture and storage (BECCS), direct air carbon capture and storage (DACCS), and waste to energy with carbon capture and storage (WECCS) – can support the UK in meeting its net zero targets out to 2050.

Olivia Powis, CEO of the CCSA, said:

“Today’s publication of the Independent Review of Greenhouse Gas Removals marks a pivotal moment for the UK’s net zero transition. GGRs, including BECCS, DACCS, and WECCS, are essential technologies to remove residual emissions from hard-to-abate sectors, support industrial decarbonisation and maintain a reliable, low-carbon energy system.

The Review, led by Dr Alan Whitehead, provides a clear pathway to scale these solutions, and success will depend on finalising a credible GGR business model, enabling investment certainty and ensuring CO₂ transport and storage infrastructure is in place.

The UK has a real opportunity to cement its position as a global leader in high-integrity carbon removals, thanks to its large CO₂ storage capacity, existing CCUS infrastructure, advanced low-carbon technology expertise and a supportive policy and regulatory environment that can attract private investment and accelerate deployment.

We look forward to working with Government and industry to accelerate GGR deployment, helping the UK capture at least 5 Mtpa of engineered removals by 2030, rising to 23 Mtpa by 2035. This will support economic growth, energy security and help us to achieve our climate goals. With global demand for GGR credits growing – nearly 10 million purchased worldwide – the UK has a clear opportunity to lead in high-integrity carbon removals.”

Responding to the Tony Blair Institute’s report ‘Cheaper Power 2030, Net Zero 2050’, Olivia Powis, CEO of the CCSA, said:

“Low-carbon dispatchable electricity plays a critical role in supporting system resilience and complementing the integration of renewables, keeping our energy supply stable, reliable and affordable.

Today’s report published by The Tony Blair Institute focuses on strategies to deliver cheaper, reliable clean electricity in the UK, and states that “without low carbon technologies [including carbon capture and storage], the integration of high levels of renewables becomes more complex and expensive, making it harder to phase out natural gas and raising costs for consumers and businesses.”

While the report elsewhere questions the cost and pace of deploying CCS in the power sector, this acknowledgment reinforces that CCS remains essential to delivering firm, low-carbon power while driving emissions reduction across industry. Furthermore, CCS-enabled projects do not draw on government funding until they become operational, towards the end of this decade. Pausing them will not reduce bills in the near term, but rather increase the costs of delivering future power CCS projects.”

Key facts on Power-CCS:

• Three capture projects have reached Final Investment Decision (FID) in the UK: Net Zero Teesside Power (Power-CCS), Heidelberg Materials Padeswood (cement), and Encyclis Protos (energy from waste). Only one is a power project, demonstrating the cross-cutting role of CCUS’s in decarbonising the UK’s hard-to-abate industries.
• Power-CCS complements renewables and storage, ensuring reliable, low-carbon electricity even during low-generation periods.
• By scaling now, CCUS drives long-term cost reductions, supports industrial decarbonisation, and underpins energy security and economic competitiveness.
• The CCUS sector could attract £26bn of private investment by 2030 and unlock £94 bn cumulative GVA by 2050, while creating over 50,000 skilled jobs and helping transition 100,000 offshore workers into new low-carbon industries.

The CCSA welcomes the Government’s Clean Energy Jobs Plan, which recognises the vital role that CCUS and hydrogen will play in achieving the UK’s clean energy future and industrial growth ambitions.

Following the announcement, CCSA CEO Olivia Powis said,

“We welcome the Clean Jobs Plan and its recognition of the vital role CCUS and hydrogen will play in achieving the UK’s growth and decarbonisation goals while keeping industries competitive. Developing the necessary skills base is crucial to unlocking these sectors’ full potential and protecting thousands of existing industrial jobs.

Establishing a dedicated Hydrogen and CCUS Skills Accelerator, in partnership with industry, marks an important step toward creating high-quality employment and ensuring a just transition for skilled workers from the North Sea. The CCSA looks forward to collaborating with government and partners to build the workforce powering the clean energy future.”

– CCUS critical to delivering clean power, net zero and reindustrialising Britian
– UK Government is in delivery mode and leading the way with first of a kind projects reaching financial close
– New investment and training creating jobs in industrial heartlands
– Government committed to accelerating next phase of CCUS deployment

[London, 14 October] – At today’s Carbon Capture and Storage Association (CCSA) annual conference, Minister Shanks, Minister for Energy in the Department for Energy Security and Net Zero, delivered a keynote address emphasising that Carbon Capture, Utilisation and Storage (CCUS) is essential to delivering clean power and industrial decarbonisation and that the UK must accelerate deployment if it is to meet its climate ambitions.

Speaking at the Conference, Minister Shanks reaffirmed the Government’s commitment to delivering a cleaner, stronger and more industrially resilient Britain, powered by CCUS.

Minister Shanks emphasised that CCUS is a critical part of the UK’s future energy system and the path to achieving net zero, recognising the pivotal role of industry partners and organisations like the CCSA. He highlighted that the Government is now in delivery mode – getting projects off the ground and results delivered.

Referencing his recent visit to Heidelberg’s Padeswood Cement Works, Minister Shanks noted that as the UK is in “build baby build mode,” demand for cement and other industrial materials will rise. The answer, he said, lies in carbon capture technology, helping to keep vital industrial jobs while cutting emissions.

He praised the apprentices at Padeswood who are “excited by the opportunity” and “understand the potential this technology brings.” Delivering for communities across the UK’s industrial heartlands, he said, is key to the Government’s mission to create well-paid, long-term jobs across the country.

Minister Shanks confirmed that the Government is actively signing contracts and advancing major projects, reaffirming determination “to get this industry moving.”

The Minister also spoke about the importance of international collaboration, noting recent discussions at the G20 about building an interconnected global CCUS sector. However, he acknowledged that more must be done to raise public awareness of the role of CCUS in tackling climate change and creating economic prosperity. He set out the importance of reiterating these benefits as projects deploy, with investment and jobs delivered.

The UK’s CCUS industry is moving from concept to construction, with financial close reached for the first UK projects and momentum growing across Europe.

These projects represent significant steps forward in cutting emissions across hard-to-abate sectors, supporting thousands of jobs and new supply chain opportunities.

On the ground, this progress is already translating into tangible benefits. In Teesside, the Tees Valley Net Zero Industry Scholarship is training 141 individuals in high-demand industrial skills, including welding, pipefitting and instrumentation, supported by Net Zero Teesside Power and the Northern Endurance Partnership.

With world-leading offshore expertise and vast geological storage potential, the UK is uniquely positioned to lead globally in this transformative technology.

To capture the full potential of CCUS, the CCSA calls on the Government to set out a clear route to market and allocation timetable for all further projects and clusters. The development funding committed in the Spending Review to The Acorn Project and Viking CCS must be allocated, in preparation for a funding envelope for the next CCUS clusters to reach financial close within this Parliament.

Non-pipeline transport (NPT) frameworks to enable CO₂ transport by road, rail and ship must be accelerated and barriers to cross-border CO₂ storage removed – unlocking new market opportunities for the UK.

Speaking at CCUS 2025, Olivia Powis, CEO of the CCSA, said:

“This is a defining moment for the UK’s CCUS industry. We’re moving from ambition to action, with projects breaking ground, investments flowing and jobs being created across our industrial regions. CCUS isn’t just about cutting emissions; it’s about securing the future of UK industry, driving regional growth and positioning Britain as a global leader in clean technologies.”

Notes to Editor 
Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org 

For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org 

Press Pack: An FAQ, infographics and an animation accompany the press release for use. Download the press pack here though the CCSA website. 

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. 

• Heidelberg Materials’ Padeswood cement works and Encyclis’ Protos Energy Recovery Facility (ERF) sign final contracts with UK Government to begin construction. 
• World-leading projects will decarbonise two of the most critical, and hardest to decarbonise industries – energy from waste and cement – while creating new skilled jobs, low carbon products and driving investment into industrial regions. 
• CCSA calls on UK Government to continue this progress across the CCUS industry, to build a self-sustaining UK market that delivers decarbonised products and economic growth. 

[London, 25 September] The Carbon Capture and Storage Association (CCSA) today welcomed the fantastic announcement that Encyclis and Heidelberg Materials have signed final contracts with UK Government to begin construction. 

These announcements represent significant milestones for two of the UK’s hardest-to-abate sectors – energy from waste and cement – both of which play a vital role in delivering a low carbon economy. 

Encyclis’ Protos ERF project will capture CO₂ emissions from unrecyclable waste and transport them via the HyNet CO₂ pipeline for permanent storage in Eni’s Liverpool Bay store. This will mean household and business waste that cannot be recycled is turned into reliable, low carbon power, while simultaneously cutting emissions and supporting local job creation.  

Heidelberg Materials’ Padeswood cement facility will capture around 800,000 tonnes of CO₂ a year from its existing cement works, producing net zero cement. This will enable the decarbonisation of one of the UK’s most essential and carbon intensive building materials, used in everyday life from homes and hospitals to football stadiums and infrastructure.  

Together, these projects will support 500 jobs during construction and operation, providing new opportunities in engineering, construction, operations and the wider supply chain. They will anchor investment in industrial heartlands and create a platform for the UK to lead in low carbon industrial technologies. 

But this must be only the beginning. To decarbonise our industries and remain competitive internationally, the UK needs to rapidly deploy a much wider pipeline of CCUS projects across multiple sectors and regions.  

The CCSA will continue to work constructively with Government to ensure that CCUS remains a priority and moves towards a self-sustaining market that delivers industrial decarbonisation, creates skilled jobs, and drives long-term economic prosperity. 

Olivia Powis, CEO of the CCSA, said: 

“Heidelberg Materials’ Padeswood and Encyclis’ Protos Energy Recovery Facility reach landmark moments in the global leadership of the UK’s industrial decarbonisation.”  

“Cement and energy from waste are two of the most difficult sectors to decarbonise, yet they are fundamental to our economy and way of life – from building new homes and vital infrastructure to managing society’s unrecyclable waste and providing reliable low carbon power. 

“These world-leading projects show how carbon capture can provide credible, scalable pathways to net zero, securing the future of essential UK industries and keeping businesses competitive in global markets. By capturing CO₂ and transporting it via the HyNet network to Eni’s permanent storage in Liverpool Bay, these projects will cut emissions, support 500 skilled jobs, decarbonise essential waste treatment infrastructure and kickstart the UK’s new low carbon cement market, driving economic growth in local communities.” 

Mark Burrows-Smith, Encyclis Chief Executive, said:  

“We have secured a once-in-a-generation opportunity to begin decarbonising waste treatment in the UK. This first full-scale carbon capture deployment in the UK enables us to continue providing an essential treatment service for non-recyclable waste while reducing carbon emissions, creating new skilled jobs and clearing a pathway for wider adoption across the industry.” 

“We are not only building a carbon capture plant but setting the foundations for a new era of industry transformation which helps the UK achieve its greenhouse gas reduction targets and manage its resources more efficiently.” 

Simon Willis, CEO at Heidelberg Materials UK, said:  

“Our constructive partnership with the UK Government has allowed us to reach this major milestone, which is fantastic news, not just for us, but for the industry as a whole.” 

“Our new facility at Padeswood will be a world-leader. It will capture around 800,000 tonnes of CO₂ a year from our existing cement works, allowing us to produce evoZero net zero cement, which will help the UK construction industry reach its decarbonisation aims.” 

“CCS is a growing sector worldwide and our Padeswood project is an exemplar, helping position the UK as a global force at the forefront of this technology. It will also pave the way to decarbonising our domestic cement industry, helping it remain competitive while mitigating against climate change.” 

Notes to Editor  

• You can watch the Channel 4 News piece on today’s announcement on YouTube here: https://www.youtube.com/watch?v=IYEqy6KoGS8
• Interview requests: To interview Olivia Powis, CEO of the CCSA, please contact sara.price@ccsassociation.org  

• For a briefing call on CCUS, please contact Sara Price on 07825235313 / sara.price@ccsassociation.org  

• Press Pack: An FAQ, infographics and an animation accompany the press release for use. Download the press pack here though the CCSA website.  

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.  

FAQ’S and MythBusters  

Isn’t CCUS just an excuse for polluting industries to carry on as usual? 
CCUS is essential for decarbonising sectors like cement, energy from waste, refining, and chemicals — where emissions are unavoidable. It is recognised by the Climate Change Committee as a critical part of achieving net zero, not a substitute for emissions reduction.  

Isn’t CCUS too expensive compared to renewables? 
Independent bodies including the National Audit Office have confirmed that the cost of deploying CCUS is lower than the cost of failing to meet climate targets. It also reduces the cost of the transition by supporting system flexibility.  

Isn’t CCUS unproven and risky? 
CCUS has been operating safely for decades. Projects like Sleipner and Northern Lights in Norway have stored CO₂ securely for over 25 years. Today, over 50 commercial-scale facilities are operating worldwide.  

Won’t CCUS delay investment in other clean technologies? 
CCUS is complementary to technologies like renewables and hydrogen. The UK needs flexible low-carbon power to ensure security of supply — including CCUS-enabled power and hydrogen-to-power.  

Why should the public subsidise CCUS projects? 
Support is structured to deliver value for money. For example, funding is only released once projects reach agreed milestones. At full scale, the programme equates to around 28p per person per week, with gainshare mechanisms in place to return value to the taxpayer.  

Why is there delay in the UK CCUS rollout? 
CCUS projects are ready. The infrastructure, investment, and workforce are in place — but timely policy decisions are needed to unlock further progress. Delay risks missing net zero targets and losing industrial competitiveness.  

Can’t we just use nature-based solutions instead? 
Nature-based solutions are important, but they won’t be enough on their own. Engineered removals, including BECCS and EfW with CCS, are essential to reach UK climate targets — starting from 5 MtCO₂/year by 2030.  

Is there really a market for captured carbon? 
Demand for high-quality carbon removals is growing — with nearly 10 million tonnes of removal credits sold globally to date. The UK is well placed to lead in this emerging global market.  

Does the UK have the infrastructure to scale CCUS? 
Yes — the UK has world-class geology for CO₂ storage and a growing pipeline of projects across multiple clusters. With the right policy framework, these can deliver significant volumes of CO₂ capture by 2030 and beyond.  

Isn’t the UK falling behind on CCUS? 
Other countries are moving quickly, but the UK has the opportunity to lead. We have the storage capacity, industrial base, and skilled workforce. Accelerating deployment now is critical to securing this competitive advantage.  

Responding to Kemi Badenoch’s announcement that a Conservative government would remove net zero requirements from oil and gas companies drilling in the North Sea, scrapping work on technologies such as carbon storage, Olivia Powis, CEO of the CCSA, said:

“Carbon capture, utilisation and storage (CCUS) is a vital technology for sustaining a competitive industrial base in the UK, delivering a reliable, low-carbon energy system and addressing climate change. Billions of pounds of private sector investment have already been committed to establishing CCUS clusters, reflecting strong confidence in the UK’s potential. Our analysis shows that full deployment of CCUS could create over 50,000 skilled jobs by 2050, as well as retain thousands of skilled jobs – maximising our offshore skills and expertise, attract £26 billion in private investment by 2030, and add £94 billion in Gross Value Added to the economy by 2050.”

Brussels, 3 September 2025 – Today, the CCSA and 55+ other leading businesses, associations, and civil society groups have joined forces to deliver a clear message to Brussels and London: it’s time to fast-track cooperation on Carbon Capture Utilisation & Storage as part of the ongoing discussions on linking the EU and UK Emissions Trading Systems (ETS).

In a joint letter sent today to European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, and senior EU and UK leaders, the signatories welcome progress towards linking the EU and UK ETS systems. But they warn that without urgent steps to coordinate on Carbon Capture, Utilisation and Storage (CCUS), the ambition risks getting stuck in the pipeline.

The signatories call for the immediate creation of a dedicated Working Group on CCUS under the Trade and Cooperation Agreement’s Specialised Committee on Energy. Such a forum would provide structured dialogue on cross-border CO₂ transport and storage and regulatory coordination, key elements for ensuring clarity and predictability for industrial actors investing in decarbonisation.

“Establishing a Working Group on CCUS would allow ETS linkage and cross-border CO₂ trade discussions to progress in parallel, accelerating the development of cross-border projects,” the letter states. “This will benefit both EU and UK industrial stakeholders by enabling them to decarbonise their activities while staying competitive”.

According to CCSA’s report Accelerating a Europe-wide CO₂ storage market, with access to UK CO₂ storage sites, EU emitters would also benefit from significant cost savings (on average) up to 28% (€16/t of CO₂).

The letter outlines key recommendations for the EU and UK’s preparatory work on ETS linkage, including:

• Ensuring mutual eligibility of emission allowances across both systems and joint oversight of registries and auctions
• Developing compatible market stability mechanisms and aligning phase-out of free allowances
• Recognising CO₂ transport and storage under both regulatory regimes, to enable access to UK storage sites and deliver significant cost savings for EU emitters
• Coordinating standards on CO₂ specifications, metering, carbon removals integration, and certification methodologies

With both the EU and UK highlighting CCUS as a pillar of their decarbonisation strategies, the signatories stress that now is the opportune moment to act. By confirming the role of CCUS into ETS linkage negotiations, policymakers can accelerate the rollout of crucial CO₂ cross-border infrastructure.

ENDS

Notes to Editor 

Media contact: For questions or requests, please contact francesco.dapolito@ccsassociation.org

About the CCSA 

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