Briefing

Is the government wasting money on CCS?

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Date:

18 August, 2025

Summary

The UK government has committed up to £21.7 billion over 25 years to support carbon capture and storage (CCS) projects, making it one of the largest public investments in climate technology. The government is keen to be a leader on CCS but with households facing a cost of living crisis and public finances under pressure, this substantial commitment to an expensive and commercially unproven technology raises important questions about value for money and who ultimately foots the bill.

In this briefing, we examine whether the government is wasting money on CCS by analysing two critical issues: whether the funding is being spent strategically on the right sectors, and who is and should be paying for it. Ultimately, some CCS will be needed to reach net zero, but it is essential that spending priorities do not favour expensive projects that prolong fossil fuel use, and instead should target essential applications like cement and chemicals manufacturing and direct greenhouse gas removal where no alternatives exist. Alternative sources of funding also need to be sought with some urgency.

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