MPs have warned that the government’s investment of billions of pounds in unproven green technology for reducing planet-warming gases is neglecting the impact on consumer bills. Carbon Capture, Utilisation, and Storage (CCUS) facilities aim to prevent carbon dioxide emissions by capturing and storing them underground. The government’s pledge of nearly £22bn for CCUS facilities, with three-quarters of the funding raised from consumer bills, has raised concerns about the financial impact on households and businesses.
Chair of the Public Accounts Committee, Sir Geoffrey Clifton-Brown, emphasized the unproven nature of the technology and the potential effects on consumers and industry. Secretary of State for Energy, Ed Miliband, defended the technology’s importance in combating climate change, despite its novelty.
The UK’s target to achieve “net zero” emissions by 2050 relies on the success of carbon capture technology. While the government aims to prevent 50 million tonnes of CO2 emissions by 2050 through carbon capture and storage projects, there are concerns about the sustainability of the funding model.
Dr. Stuart Jenkins defended the status of carbon capture technology, pointing to existing global facilities capturing CO2. The Public Accounts Committee recommended proper assessment of the financial impact on consumers and industry, with a focus on sustainable funding models.
The committee stressed the importance of early government support for novel technologies like CCUS to boost industry confidence. However, they highlighted the lack of profit-sharing mechanisms in government contracts with CCUS developers and suggested changes for future agreements.
Mirte Boot proposed a carbon storage mandate as a potential long-term financing model, imposing obligations on fossil fuel producers to store CO2 or face penalties, providing investment certainty for companies.