Strategic policy position for Carbon Capture and Storage

Our vision for the future of industry and energy generation is one in which sustainable industries are retained in Wales and continue to generate high-quality jobs and careers and other benefits for the communities in which they operate. 

We want industry and energy generation to substantially reduce their reliance on fossil fuels and the generation of greenhouse gases, and have credible plans to transition towards net-zero. 

The Climate Change Committee considers all credible pathways through which Wales can reach net-zero emissions involve a significant role for Carbon Capture and Storage (CCS). CCS has the potential to enable the decarbonisation of many parts of the economy including industry, power generation, heating and transport. 

Welsh Government recognises both the importance of CCS to reaching net-zero, and the significant economic opportunities the technology can deliver for industry, business and citizens in Wales. We see a role for the targeted implementation of CCS infrastructure where it will accelerate emission reductions during the transition away from fossil fuels. Where fossil fuel consumption cannot be avoided, the resulting emissions should be captured and safely and permanently stored in secure geological formations. 

Welsh Government is therefore committed to ensuring that CCS is fit for purpose, benefits Welsh citizens, and contributes to our well-being goal of making a positive contribution to global well-being.

To achieve this vision, it is the policy of the Welsh Government to encourage the deployment of CCS infrastructure: 

1. Where CCS makes a clear, measurable and sustained contribution to decarbonisation targets and objectives

Where required by existing consenting, legislative and policy requirements, developers should provide evidence of a measurable and sustained contribution to decarbonisation and net-zero through reducing emissions to atmosphere at the site they operate or propose to operate. 

The policy recognises that some facilities and sectors will have a justifiable need to continue to utilise fossil fuels, and it may be appropriate, where permissible within a specific consenting regime, to look beyond the boundaries of a facility to provide evidence of decarbonisation. For example, CCS abated fossil fuel derived dispatchable power can result in net-decarbonisation gains where it facilitates the introduction of additional renewable energy.

2. Where CCS supports and accelerates the transition from fossil fuels 

It is the established policy of the Welsh Government to substantially reduce the reliance on fossil fuels across the Welsh economy.  Aligned with the wider ecosystem of policy and legislation applicable to energy and industry in Wales, our CCS policy maintains a clear objective to transition away from fossil fuels, rather than rely on CCS alone. 

CCS is not a substitute for broader emission reductions. And CCS should not justify unsustainable levels of fossil fuel use or impede our transition to net-zero. However, it is also recognised that all credible pathways to net zero emissions for Wales involve a significant role for CCS. 

The ecosystem of existing and emerging policy and legislation in Wales encourages energy efficiency, energy reduction and renewable energy. This CCS strategic policy should be considered in-combination with all other energy, decarbonisation and sector specific policy and legislation that is applicable to CCS developments.

In particular, Planning Policy Wales expects all new developments to mitigate the causes of climate change in accordance with the energy hierarchy for planning. The Environment (Wales) Act 2016 requires emissions in Wales to be reduced at least 100% lower than the baseline (1990 levels). The Climate Change (Interim Emissions Targets) (Wales) (Amendment) Regulations 2021 set challenging targets for emissions in interim years to be reduced by 63% by 2030 and 89% by 2040.

3. Where the creation of emissions is first avoided

Avoidance of emissions should be prioritised, to encourage the transition away from fossil fuel extraction and consumption, but also to ensure emerging, and currently limited CCS infrastructure, is targeted to where it delivers the greatest decarbonisation and economic outcomes. 

The policy recognises that fuel switching, and efficiency gains may not always be technically or economically viable and supports CCS in these cases. However, in all cases, developers should evidence that they are making the best use of CCS technology and available infrastructure, given the specific nature of their facilities, to deliver decarbonisation and wider economic and well-being objectives.

4. Where CCS contributes to growing a sustainable economy

Developers should demonstrate how deploying CCS contributes to a sustainable economy and delivers a just and fair transition away from fossil fuels.

Effective deployment of CCS has the potential to create and safeguard sustainable industries and high-quality jobs, and other benefits for the communities in which they operate. The transition to a low-carbon economy also has wider benefits of enhanced places to live and work, with clean air and water and improved health outcomes.

Developers should look to maximise the benefits and opportunities for citizens across Wales and thereby build trust and acceptance amongst stakeholders for their projects.

The Planning (Wales) Act 2015 requires that all developments must carry out sustainable development in accordance with the Well-being of Future Generations (Wales) Act 2015 ensuring the development and use of land contributes to improving the economic, social, environmental and cultural well-being of Wales. 

Both the Welsh Government and UK Governments recognise the strategic importance of CCS and have accepted the Climate Change Committee’s view that CCS is essential to meeting and sustaining net-zero. However, CCS infrastructure will be subject to a variety of consenting regimes and an evolving policy and support framework, designed to safeguard the environment and citizens, and deliver statutory decarbonisation and well-being obligations.

Therefore, in-accordance with existing planning regime, environmental permitting and licensing requirements, the responsibility for demonstrating that CCS contributes to long-term decarbonisation, and builds a stronger, greener economy, rests with the developer.

This policy does not introduce new evidence requirements, but rather, it provides additional context to the requirements of existing consenting regimes (planning, environmental permitting and licensing).  

Developers are responsible only for evidencing emission reductions at the facilities they operate (as required by existing consenting requirements). The policy does not require developers to provide evidence of net global emission reductions. The aim of this policy is to encourage CCS where it reduces emissions to atmosphere in Wales, which in turn, will contribute to UK and global decarbonisation efforts.

Additional guidance on evidence requirements, and how this policy integrates into existing consenting regimes will be produced to aid developers and consenting decision makers.

This policy is applicable only to capture and storage considerations.  Utilisation of CO₂ will be addressed in a separate policy.