UK should stop investing in carbon capture for power, government adviser says – Financial Times

 

Report on the Viability of Carbon Capture and Storage (CCS) in the United Kingdom’s Energy Strategy

1.0 Introduction: CCS Investment and Sustainable Development Goals

A significant debate has emerged regarding the United Kingdom’s substantial investment in Carbon Capture and Storage (CCS) technology for its energy sector. This report analyses the arguments presented by industry leaders and scientific experts, evaluating the alignment of the UK’s CCS strategy with key United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

2.0 Critique of CCS in Energy Systems

Prominent government adviser and Octopus Energy CEO, Greg Jackson, has advised that the UK should cease investment in CCS for energy generation. The core arguments against the current strategy are outlined below.

• Conflict with SDG 7 (Affordable and Clean Energy): It is argued that investing in CCS for gas-fired power plants is an inefficient use of public funds. Instead, capital should be directed towards making renewable electricity cheaper, which in turn lowers the operational cost of heat pumps and electric vehicles—key technologies for decarbonisation. This approach would more directly support the goal of affordable and clean energy for all.
• Undermining SDG 12 (Responsible Consumption and Production): Critics contend that CCS serves as a “boondoggle” for the oil and gas industry, enabling the continuation of fossil fuel extraction and consumption under the guise of mitigation. This potentially hinders the transition to more sustainable production patterns.
• Ineffectiveness for SDG 13 (Climate Action): The argument is made that burning unabated gas while accelerating the rollout of cheaper renewables is a more effective path to emissions reduction than investing in costly and unproven CCS technology for power generation.

3.0 UK Government Position and Strategic Alignment

The UK government maintains that CCS is a vital component of its net-zero strategy, framing its investment as a driver for sustainable development.

1. Commitment to SDG 13 (Climate Action): The government views CCS as essential for achieving a clean power system and meeting its legally binding net-zero emissions target by 2050. Projects such as Net Zero Teesside Power, developed with BP and Equinor, are central to this plan.
2. Fostering SDG 9 (Industry, Innovation, and Infrastructure): With up to £21.7 billion in support allocated over 25 years, the government aims to build a new, first-of-a-kind industrial infrastructure for carbon management. This includes projects like the 38-mile pipeline near Liverpool and Manchester.
3. Promoting SDG 8 (Decent Work and Economic Growth): The government justifies its investment by highlighting the potential to support thousands of jobs and revitalise the UK’s industrial heartlands, linking climate action directly to economic growth objectives.

4.0 Scientific and Economic Feasibility Challenges

Recent scientific findings and expert analysis have raised significant questions about the scalability and economic viability of CCS, impacting its potential contribution to global climate goals.

• Technological Scalability: A recent study indicated that the capacity for safe underground CO₂ storage may be far less than previously estimated. The technology remains undeveloped at the scale required by IPCC scenarios to limit global warming to 1.5°C, a primary target of SDG 13.
• Economic Inefficiency: Data scientist Hannah Ritchie notes that applying CCS to energy systems like oil, gas, and coal, which can be replaced by cheaper, cleaner alternatives, is economically unsound. The process “inevitably increases the price of the product,” running counter to the affordability tenet of SDG 7.

5.0 Recommended Application for Hard-to-Abate Sectors

There is a consensus among critics that CCS technology may have a crucial, albeit limited, role in achieving decarbonisation goals.

• Targeting SDG 9 (Industry, Innovation, and Infrastructure): Both Greg Jackson and Hannah Ritchie agree that CCS should be reserved for hard-to-abate industrial sectors where no viable alternatives currently exist, such as cement manufacturing. This targeted application aligns with the goal of upgrading infrastructure and retrofitting industries to make them sustainable.

SDGs Addressed in the Article

SDG 7: Affordable and Clean Energy

• The article extensively discusses different approaches to achieving a clean energy system. It contrasts the UK government’s investment in Carbon Capture and Storage (CCS) for gas-fired power plants with the alternative proposed by Greg Jackson: focusing on cheaper renewable energy sources like wind farms to power the economy. This debate is central to ensuring access to affordable, reliable, sustainable, and modern energy.

SDG 9: Industry, Innovation, and Infrastructure

• The core topic involves significant infrastructure projects and technological innovation. The article details plans for a “38-mile pipeline to start capturing and storing CO₂ emissions from industrial plants” and the development of the “Net Zero Teesside Power” plant. This highlights the focus on building resilient infrastructure and promoting inclusive and sustainable industrialization by adopting clean technologies like CCS, particularly for “hard-to-abate sectors such as cement.”

SDG 13: Climate Action

• The entire premise of the article is rooted in the urgent need to combat climate change. It directly references the UK’s “legally binding goal of cutting carbon emissions to net zero by 2050” and the global goal from the “2015 Paris agreement” to limit warming to 1.5°C. The discussion about the viability and effectiveness of CCS is a debate about the best strategy to achieve these climate action goals.

SDG 17: Partnerships for the Goals

• The article highlights the role of public-private partnerships in implementing climate strategies. It mentions specific collaborations, such as the UK government working with the Italian energy company Eni on a pipeline project and backing a power plant being developed by BP and Equinor. These partnerships are presented as the mechanism for delivering the large-scale investment and infrastructure required for the energy transition.

Specific SDG Targets Identified

SDG 7: Affordable and Clean Energy

1. Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology.
   • The article directly addresses this by detailing the UK government’s significant financial support for CCS, which it considers a “cleaner fossil-fuel technology.” The government announced “up to £21.7bn of support” and allocated further capital to get CCS projects off the ground, demonstrating a promotion of investment in specific energy infrastructure.

SDG 9: Industry, Innovation, and Infrastructure

1. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • This target is exemplified by the plan to use CCS to “start capturing and storing CO₂ emissions from industrial plants around Liverpool and Manchester.” The article also notes that while CCS may be inefficient for energy systems, it could be useful for retrofitting “hard-to-abate sectors such as cement,” directly aligning with the goal of making industries more sustainable.

SDG 13: Climate Action

1. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article clearly shows this target in action. The UK’s “legally binding goal of cutting carbon emissions to net zero by 2050” is a national policy. The government’s decision to invest billions in CCS is a specific strategy being implemented as part of this national plan to meet its climate commitments.

SDG 17: Partnerships for the Goals

1. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
   • The article provides concrete examples of this target. The UK government and the Italian energy company Eni giving the “go-ahead for a 38-mile pipeline” is a public-private partnership. Similarly, the government’s deal to “back the development of a big gas-fired power plant with carbon capture…being developed by BP and Equinor” is another clear instance of such a partnership.

Indicators for Measuring Progress

Explicit and Implied Indicators

1. Amount of CO₂ sequestered annually: This is an explicit indicator mentioned in the article. It states that the Intergovernmental Panel on Climate Change (IPCC) suggests that meeting the 1.5°C target “would mean sequestering 8.7 GT of CO₂ annually.” This provides a direct, quantifiable measure of progress for CCS technology.
2. National carbon emissions reduction: This is a primary implied indicator. The entire discussion is framed by the UK’s goal of “cutting carbon emissions to net zero by 2050.” Progress towards this legally binding goal is the ultimate measure of the success of any climate strategy discussed.
3. Financial investment in climate projects: The article provides specific financial figures that serve as indicators of commitment and progress. It mentions “up to £21.7bn of support” over 25 years and that projects are “backed by £9.4 billion over this parliament.” These figures can be tracked to measure the scale of investment in climate technologies.
4. Cost of electricity: An implied economic indicator is the price of energy. Greg Jackson argues against CCS because “the cheaper we make electricity, the cheaper our heat pumps and electrics cars are going to be, and they are the key to emissions reductions.” This suggests that the affordability of clean energy is a key metric for a successful transition.

Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators
SDG 7: Affordable and Clean Energy	7.a: Promote investment in energy infrastructure and clean energy technology.	Implied: Cost of electricity as a measure of affordability and accessibility for technologies like heat pumps and electric cars.
SDG 9: Industry, Innovation, and Infrastructure	9.4: Upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies.	Implied: Number and scale of industrial plants retrofitted with CCS technology, particularly in hard-to-abate sectors like cement.
SDG 13: Climate Action	13.2: Integrate climate change measures into national policies, strategies and planning.	Explicit: Amount of CO₂ sequestered annually (target of 8.7 GT mentioned). Implied: Progress towards the national goal of “net zero by 2050.”
SDG 17: Partnerships for the Goals	17.17: Encourage and promote effective public, public-private and civil society partnerships.	Explicit: Financial commitments to partnerships (e.g., “£21.7bn of support,” “£9.4 billion over this parliament”).

Source: ft.com