8th Report - Carbon Capture, Usage and Storage
Select Committee
Public Accounts Committee
HC 351
7 February 2025
Government Response (AI assessment · 26 of 26 classified)
Accepted
16
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Eighth report from Session 2024-25 · published 6 May 2025
Recommendations & Conclusions
6 results
10
Conclusion
Acknowledged
Department established specific business models for Track 1 CCUS projects to allocate risks effectively
Conclusion
The Department established business models on which to base its support for each of the projects in the programme’s Track 1.28 These models set out how costs and risks are distributed between the government and the project.29 The Department told …
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Government Response Summary
The Department for Energy Security and Net Zero has created business models that provide the minimum subsidy required to support the projects, keeps the allocation of costs and risks under review with the aim of reducing subsidy over the long-term.
HM Treasury
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11
Conclusion
Acknowledged
Department aims to shift financial risk from government to self-sustaining CCUS market by 2035
Conclusion
Looking to the future, the Department told us it wants to move the balance of risk away from the government as the market for CCUS evolves.33 The Department’s current assessment is that, because projects are first–of–a– kind, there is an …
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Government Response Summary
The Department for Energy Security and Net Zero has created business models that provide the minimum subsidy required to support the projects, keeps the allocation of costs and risks under review with the aim of reducing subsidy over the long-term.
HM Treasury
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14
Conclusion
Acknowledged
Uncertainty remains regarding precise consumer/taxpayer funding balance for the £22 billion CCUS programme
Conclusion
The Department told us it expects around three quarters of the allocation of financial support of almost £22 billion will be from levies on consumers (such as those using power generated by the Net Zero Teesside project).46 The remaining 25% …
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Government Response Summary
The department continuously assesses the affordability and value for money of government support for CCUS as part of key policy and decision-making processes, working with HM Treasury to assess benefits, taxpayer affordability, and energy bill impacts.
HM Treasury
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17
Conclusion
Acknowledged
Climate Change Committee deems CCUS essential for UK net zero targets, with ambitious 2030 goals
Conclusion
The Department began developing its current approach to CCUS in 2018, following two previous failures.58 The Climate Change Committee, which advises government on how best to meet its decarbonisation goals, considers CCUS to be essential for the UK to meet …
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Government Response Summary
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific ambitions for the CCUS programme mentioned in the conclusion.
HM Treasury
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18
Conclusion
Acknowledged
Department made slow progress and scaled back initial carbon capture ambitions
Conclusion
However, the Department has made slow progress in getting the first tranche of projects running. It had initially hoped to sign contracts with the first carbon capture projects in the second quarter of 2022, but this has been repeatedly pushed …
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Government Response Summary
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific delays and scaling down of ambitions mentioned in the conclusion.
HM Treasury
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19
Conclusion
Acknowledged
2030 carbon capture and storage targets deemed unachievable by the Department
Conclusion
In the latter part of 2024, the Department successfully concluded negotiations with two of the Track 1 projects. In December 2024, the Department announced it had signed contracts with the first two projects at East Coast Cluster: Net Zero Teesside …
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Government Response Summary
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific negotiation successes and the revised target mentioned in the conclusion.
HM Treasury
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