MPs Sound Alarm: 22 Billion Funding for Untested Green Technology Could Lead to Higher Costs

Norway is one of a select few countries globally with operational large-scale carbon capture and storage (CCS) facilities. However, British MPs have expressed concerns over government investments in this “unproven” green technology for reducing planet-warming gases, citing potential negative impacts on consumer bills.

Carbon Capture Utilisation and Storage involves capturing industrial-produced carbon dioxide from the atmosphere by storing it underground instead of releasing it into the environment. In October, the British government committed nearly 22 billion towards CCS facilities, with three-quarters of this funding coming directly from consumers electricity bills.

On Friday, the House of Commons’ Public Accounts Committee raised significant reservations regarding the governments inadequate assessment of potential financial implications for households and businesses. Sir Geoffrey Clifton-Brown, chair of the committee, stated: “It is an unproven technology certainly in this country. We are concerned that this policy will significantly affect consumers and industry’s electricity bills.”

Ed Miliband, Secretary of State for Energy, acknowledged the novelty of CCS but stressed its importance for climate change mitigation. He said all expert advice from bodies such as the UK Climate Change Committee suggests “if we don’t do this, we are never going to cut global emissions.” The governments goal is to achieve a net-zero emission by 2050, and CCUS plays a crucial role in that vision.

Despite the lack of commercial CCS projects in the UK, there are currently operating globally. Dr Stuart Jenkins from the University of Oxford refuted the characterization of CCS as “unproven,” arguing instead that it is an engineering challenge rather than a technology gap. However, he concurred with concerns about government financing models.

The Public Accounts Committee recommended thoroughly assessing the financial impact on consumers and warned against signing contracts without profit-sharing mechanisms to ensure taxpayers benefit from public investments in CCUS projects.

Another potential solution proposed by Mirte Boot from Carbon Balance Initiative involves a carbon storage mandate. This approach would legally obligate fossil fuel producers to store a portion of their produced CO2, with non-compliance leading to financial penalties. Such measures could provide necessary investment certainty for companies while also being fair to the public.