UK

[London, 7 May] Leading industry bodies have warned the Energy Secretary that urgent Government action on industrial decarbonisation is needed. Without it, the UK risks accelerating the decline of its foundational industries, putting jobs, investment and energy security at risk.

In a joint letter, senior representatives from the Carbon Capture and Storage Association (CCSA), Hydrogen UK and Electrify Industry warn that without clear policy direction and investment signals, the UK risks further decline in its critical industrial base.

The letter comes amid mounting pressure on UK heavy industry. High electricity costs, global competition and policy uncertainty are already driving closures and constraining investment, weakening the UK’s ability to produce essential materials for infrastructure, healthcare, construction and energy systems.

The signatories argue that industrial decarbonisation is central to economic resilience and national security in an increasingly volatile global environment. Without decisive intervention, the UK risks deeper reliance on imports, exposure to supply chain shocks and the erosion of domestic industrial capability.

The letter calls on the Government to:

  • Reduce industrial electricity costs and deliver the British Industrial Competitiveness Scheme
  • Accelerate key technologies including electrification, hydrogen and carbon capture, utilisation and storage
  • Streamline planning and regulatory processes
  • Provide long-term policy and funding certainty
  • Develop a strong pipeline of investable decarbonisation projects
  • Expand workforce skills through the Clean Jobs Plan
  • Introduce a robust carbon border adjustment mechanism for all affected industries

Industry leaders warn that continued delays, including the long-overdue Hydrogen Strategy, are undermining investor confidence, with major projects already struggling to progress without clear routes to market.

Olivia Powis, CEO of the CCSA, said:
“Carbon capture, utilisation and storage (CCUS) is critical to the future of UK industry. Without it, key sectors like cement and refining cannot decarbonise or stay competitive, risking industry leaving the UK. Therefore, the Government must now move at pace to provide the certainty needed to unlock billions in investment and deliver CCUS projects at scale.”

Clare Jackson, Chief Executive of Hydrogen UK, said:
“Supporting industrial decarbonisation is crucial to protect the UK’s industries, jobs and supply chains that underpin our economy and national security. Hydrogen is essential for the hard-to-abate sectors that cannot simply electrify, but the ongoing delay of the UK’s refreshed hydrogen strategy is now putting real projects at risk. The long-overdue decisions for the second Hydrogen Allocation Round, (HAR2), is holding back investment in the North East, North West and Yorkshire and the Humber, creating a regional divide between communities that should be at the heart of the UK’s clean industrial future. With major investors ready to move and billions of pounds waiting to be deployed, Government needs to play its part and provide the certainty investors and industry needed to move forward.”

Daniel Paterson, Director of Policy and Government Affairs, Electrify Industry

“Britain’s artificially high costs on electricity bills are a drag anchor on industrial investment. Despite electrification offering the opportunity to modernise industry, improve productivity, and reduce carbon emissions, British industrial employers are locked out of such investment options. Without direct action on the policy and infrastructure costs that inflate the price of electricity for British industry, our nation’s employers and innovators will fall behind in the global race to modernise.”

The letter concludes by urging the Government to treat industrial decarbonisation as a national security priority and calls for a meeting with ministers to discuss how industry and Government can work together to deliver the IDS.

ENDS

 

Notes to editors

Interview requests:

  • CCUS Press Pack: An FAQ, infographics and an animation can be downloaded from the media centre here through 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 represents more than 120 member companies spanning the full CCUS value chain – from carbon capture and removals, CO₂ transport by pipeline and ship, utilisation, and geological and permanent storage, to end-users in power, industry, waste management, fuels and hydrogen production. Our membership also includes a broad range of supply chain, engineering, construction, legal, financial and consultancy organisations that support the deployment of CCUS across the UK and beyond.

About Hydrogen UK

Hydrogen UK is the UK’s leading trade association supporting organisations across the entire value chain, to develop, scale up and deploy hydrogen solutions.

Collaborating with our membership, from production to end-use, and other key stakeholders, Hydrogen UK works to accelerate the deployment of hydrogen, providing the UK opportunity to decarbonise hard-to-abate sectors, deliver a secure resilient energy system and create a world leading hydrogen value chain that delivers jobs and economic prosperity.

About Electrify Industry

Formed by industrial businesses, Electrify Industry seeks to modernise and decarbonise the UK economy affordably and at pace through electrification. Part of the Make UK family, our mission is to ensure that industry is at the able with the energy sector, Government, and wider stakeholders to drive industrial modernisation, transformation, and decarbonisation

Our mandate from members:

  1. Champion competitive electricity prices vs. other industrial energy options and the UK’s global competitors to unlock significant investment in industrial modernisation and domestic supply chain development.
  2. Drive greater reforms to the energy system, supporting industry’s ability to access connections, unlock flexible demand, and enable onsite storage and generation.
  3. Simplify the financial, skills and regulatory landscape in the UK to drive industrial electrification.