For the UK to reach net zero some carbon capture and storage (CCS) will be necessary. The oil and gas industry are currently making billions in profits each year. They stand to receive £8 billion in subsidies for CCS over the next 25 years. This number will increase unless the government finds an alternative way to fund these projects.

With expectations from the oil and gas industry that CCS needs subsidies, now is a crucial moment to lay out how it can be funded under polluter pays principles.

In this briefing, we propose a Carbon Takeback Obligation (CTBO), requiring oil and gas companies to store an increasing proportion of the emissions they are responsible for as a condition of their licence to operate.

For more information, contact

Amira Jamal, policy analyst