UK

As UK CCUS projects move into construction, CCSA calls for action to unlock greenhouse gas removals

London, [8 July] – With the UK’s first carbon capture, utilisation and storage (CCUS) projects now under construction, the Carbon Capture and Storage Association (CCSA) has called on Government to take the next step in developing a world-leading greenhouse gas removals (GGR) market.

Senior leaders from across the CCUS sector gathered at the House of Lords yesterday alongside Lord Whitehead, Minister for Energy Security and Net Zero, to celebrate the progress of the UK’s CCUS industry. As the UK experiences its third heatwave of the year, it is another reminder of the need to accelerate climate action. The event also marked the launch of the CCSA’s new Position Paper on accelerating the deployment of greenhouse gas removals – which are essential if we are to address the rising temperatures.

Projects across the North West, North Wales and Teesside are now in construction, with more than £4 billion of supply chain contracts already awarded, supporting and creating around 5,000 construction jobs. The first CCUS clusters have also met the industry’s voluntary commitment to source at least 50% of goods, services and labour from UK suppliers, demonstrating the sector’s contribution to British businesses and skilled employment.

Speaking at the event, the Minister reiterated his support for the technology and the commitments the Government has already made, highlighting the vital role of CCUS and greenhouse gas removals in decarbonising industry, strengthening energy security and driving long-term economic growth. He also welcomed continued collaboration between Government and industry as deployment accelerates.

Building on industry momentum, the CCSA launched ‘Capturing the Greenhouse Gas Removal (GGR) opportunity’ – setting out how the UK can establish itself as a global leader in greenhouse gas removals. The Position Paper highlights the UK’s unique strengths, including world-leading CO₂ storage capacity, a rapidly expanding CCUS industry, internationally recognised engineering expertise and deep capital markets.

Analysis by AFRY finds that a strong UK greenhouse gas removals market could cut public support costs by £1 billion a year in the 2030s and more than £3 billion a year by 2050. As more businesses buy GGR credits, private demand would help fund new removal projects and reduce the need for long-term government support, significantly lowering the cost of delivering the GGRs needed to meet the UK’s climate ambitions. Taken together, this could cumulatively save taxpayers up to £35 billion by 2050.

Greenhouse gas removals will be essential to achieving the UK’s climate targets. The Climate Change Committee (CCC) estimates that the UK will require up to 35.8 million tonnes of carbon dioxide (MtCO₂) of removals each year by 2050 – equivalent to removing the emissions of around 16 million cars annually.

The CCSA estimates that the current pipeline of UK projects, if provided a route to market, could deliver 18.2 MtCO₂ of removals every year by 2035 – equivalent to taking around 8 million cars’ worth of emissions out of the atmosphere annually – provided the right policy and investment framework is established.

However, the Paper warns that delays to policy development, transport and storage infrastructure, and long-term market incentives risk slowing deployment and weakening investor confidence at a critical stage of market development.

To unlock the sector’s full potential, the CCSA is calling on Government to provide stronger long-term demand signals through sectoral mandates (such as in aviation), incentives for corporate buyers, the creation of a UK buyers’ club for removals, and the timely integration of GGRs into the UK Emissions Trading Scheme by 2029.

Without action, the Paper warns, the UK risks losing its first-mover advantage as international competition intensifies. By acting now, Government can unlock billions of pounds of private investment, reduce the long-term cost of tackling climate change and position the UK as a global leader in carbon removals.

Olivia Powis, CEO of the CCSA, said:

“The UK has built real momentum in CCUS, with projects under construction and a world-class CO₂ transport and storage industry taking shape. We now have a once-in-a-generation opportunity to build on that foundation and establish the UK as a global leader in greenhouse gas removals.”

Despoina Tsimprikidou, Senior Policy Officer at the CCSA and author of the Position Paper, said:

“The opportunity is significant. Greenhouse gas removals are essential to meet climate targets while attracting billions of pounds of investment, create skilled jobs and strengthen the UK’s industrial competitiveness. What we need now is a clear, long-term policy framework that enables a well-functioning GGR market, gives investors and businesses confidence to scale, and reduces the cost for government and taxpayers.”

ENDS

Notes to editors

About the CCSA

CCUS, or Carbon Capture, Utilisation and Storage, is a key low-carbon solution that supports industrial decarbonisation, clean power, clean hydrogen and greenhouse gas removals, including Direct Air Capture with Storage (DACS) and Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS in the UK and Europe, working with industry, governments and other stakeholders to help deliver net zero and sustainable growth.

The CCSA represents more than 100 member companies across the full CCUS value chain, including capture, transport, utilisation, storage, power, industry, hydrogen and the wider supply chain.