Lawmakers have raised concerns about the UK government’s commitment of nearly £22 billion to carbon capture, utilization and storage (CCUS) technology, labeling it “unproven” and warning it could impact consumer bills significantly. The funding aims to support CCUS facilities that trap and store carbon dioxide produced by industries, with three-quarters of the financing expected to come from consumer bills. Sir Jeffrey Clifton Brown, chairman of the House Public Accounts Committee, stressed that the technology has not been effectively demonstrated in the UK, urging a thorough assessment of its financial implications for households and businesses.
Secretary of Energy Ed Miliband acknowledged the novelty of CCUS technology but emphasized its importance in meeting the UK’s climate targets, which aim for net zero greenhouse gas emissions by 2050. The government envisions capturing 50 million tonnes of CO2 by 2050 through CCUS, with a key focus on projects in Merseyside and Teesside that promise job creation and private investment.
Dr. Stuart Jenkins from Oxford University defended the technology’s potential but aligned with the committee’s concerns regarding the sustainability of the funding model. The committee highlighted the need for profit-sharing mechanisms in future contracts to ensure public benefits if the projects succeed. The government expects its £21.7 billion investment to attract £8 billion in private funding over the next 25 years. Some experts advocate for a long-term funding approach that would mandate fossil fuel producers to store a share of the CO2 they generate, providing greater investment certainty.
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