The UK government has made a bold move in the fight against climate change by pledging £21.7bn over the next 25 years to kick-start the carbon capture industry. This substantial investment aims to transform the UK’s industrial heartlands and drive the nation towards a cleaner energy future. But with the hefty price tag attached, the big question remains: Will this really help the UK tackle climate change, or is it a gamble that may not pay off?
What is Carbon Capture and How Does it Work?
Carbon capture and storage (CCS) is a technology designed to trap carbon dioxide (CO2) emissions at their source—whether from power stations or industrial processes—before they can escape into the atmosphere and contribute to global warming. Once captured, the CO2 is transported and stored, often in deep underground facilities.
This differs from carbon removal methods, which involve extracting CO2 already present in the atmosphere using natural methods, such as tree planting, or mechanical processes.
While carbon capture technology has been around for decades, its uptake has been slow both globally and in the UK. Despite this, the government and environmental experts alike see it as an essential tool in the race to achieve net-zero emissions.
Can Carbon Capture Make a Significant Impact?
Globally, carbon capture facilities are few and far between, with only 45 commercial operations currently capturing around 50 million tonnes of CO2 annually, according to the International Energy Agency (IEA). This may seem like a lot, but it pales in comparison to the 35 billion tonnes of CO2 emitted each year from fossil fuel combustion and industrial activities.
In the UK, the story is similar. The Climate Change Committee (CCC) recognises carbon capture as a key player in the nation’s path to net zero, though it will be far from a silver bullet.
Why Does the UK Need Carbon Capture?
The UK’s reliance on fossil fuels is expected to decrease significantly as renewable energy sources like wind and solar become more prevalent. However, the CCC predicts that some natural gas generation will still be required by 2035, particularly as a backup during periods of low renewable energy output.
Carbon capture could play a vital role in preventing CO2 emissions from gas-fired power stations, as well as decarbonising industries like cement production, where alternatives are limited. Many environmental groups support carbon capture for such purposes, though they caution against it being used as a license for oil and gas companies to continue business as usual.
The Financial Gamble: Is the Price Tag Worth It?
The UK government is betting big on carbon capture. Along with the public investment of £21.7bn, an additional £8bn from private sectors is expected to fund three major carbon capture projects and two transport and storage initiatives in key industrial regions like Merseyside and Teesside.
But is this enough? With the UK’s 2023 greenhouse gas emissions sitting at an estimated 384 million tonnes of CO2-equivalent, the initial projects will only have the capacity to capture 8.5 million tonnes of CO2 per year by 2028. This highlights the fact that carbon capture is just one piece of a much larger decarbonisation puzzle.
Ed Miliband, Energy Security and Net Zero Secretary, acknowledges the scale of the challenge but believes the investment will help bring down costs over time, in much the same way that renewable energy technologies like wind and solar have become cheaper with greater adoption.
“For now, the right thing to do is help these companies capture the carbon, give them a way through,” Miliband told the BBC. “It’s so important for the competitiveness of our industry.”
Labour’s Criticism: More Investment Needed?
Labour has welcomed the focus on carbon capture but criticises the Conservatives for not making the necessary funds available sooner. While £20bn was pledged by the previous government in March 2023, critics argue that the funding sources were not identified, leaving the projects in limbo.
The opposition is calling for further investment and support to ensure that the technology can scale effectively and deliver the results needed to help meet the UK’s ambitious climate targets.
One Piece of a Larger Puzzle
Carbon capture is no magic solution to climate change. While it could play an important role in reducing emissions from difficult-to-decarbonise sectors, it remains just one of many tools needed to achieve net zero.
As the UK moves forward with its ambitious plans, the hope is that this initial investment will pave the way for more affordable carbon capture technologies in the future. Only time will tell whether the government’s hefty financial gamble will pay off, not just in reducing emissions but in revitalising the nation’s industrial heartland for a cleaner, greener future.
