Written Statement: Carbon Capture and Storage Policy

I am pleased to report that today we are publishing our revised CCS policy. 

Following a public consultation which ended in February 2025, we have taken time to consider fully the consultation responses, the advice of the Climate Change Committee on Wales’ Fourth Carbon Budget, and the UK Government Spending Review and Modern Industrial Strategy.

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.  Wales is proud of its industrial base, and we must encourage the investment necessary to support a transition to a decarbonised, sustainable future.

Guided by the advice and views of the Climate Change Committee, Net Zero Industry Wales, and our industrial, academic and public stakeholders, we are taking bold steps to support industry in decarbonising, as set out in Net Zero Wales, our strategic plan to achieve net-zero greenhouse gas emissions by 2050. 

The Climate Change Committee considers all credible pathways through which Wales can reach net-zero emissions involve a significant role for CCS.  The Welsh Government recognises both the importance of CCS to reaching net-zero, but also the significant economic opportunities the technology can deliver for industry, business and citizens in Wales.  CCS projects will create jobs and careers during construction, operation and maintenance, as well as safeguarding jobs in other sectors and providing wider supply chain opportunities. 

Consultation Details and Outcomes

The consultation received thirty-six responses representing a broad cross section from industry, academia, government bodies, trade organisations and individuals, and I would like to thank those who responded.

Many respondents used the consultation to stress how important CCS is for decarbonising industry and energy, in particular some of the hard to decarbonise sectors such as cement and dispatchable power generation. Most of the respondents supported the policy intent to use CCS where it makes a clear and sustained contribution to decarbonisation and the economy, thereby making the best use of CCS technology and available infrastructure.

However, some responses also raised a number of concerns with the policy.  We listened to the feedback, and committed to add clarity to our policy. This policy does not introduce new evidence requirements, it provides further context to the existing evidence requirements in the statutory consenting regimes (planning, environmental permitting and licensing). The policy now makes clear that:

• Developers should provide evidence that CCS delivers a measurable and sustained contribution to decarbonisation only at the proposed site of operation.
• It is the established policy of the Welsh Government to substantially reduce the reliance on fossil fuels across the Welsh economy.  The revised policy maintains a position that CCS cannot be used to justify unsustainable levels of fossil fuel consumption or impede Wales’ just transition to net-zero.  However, it better recognises that fuel switching, and efficiency gains may not always be technically or economically viable and supports CCS in these cases.
• The Welsh Government recognises the strategic importance of CCS, and has accepted the Climate Change Committee’s view that it is essential to meeting and sustaining net-zero. We will continue to work with UK Government to deliver a consistent legislative and financial support framework for developers in Wales.
• We have worked with both the UK and Scottish Governments to develop a regulatory route map and a shared understanding of the devolved and reserved regulatory frameworks.  We continue to work closely with UK Government, on both regulatory and policy matters, to ensure our policies are aligned and can effectively deliver our shared decarbonisation and economic goals

Final Strategic Policy for CCS

The Welsh Government is committed to ensuring CCS is deployed safely and effectively, making the best use of the technology to deliver decarbonisation and economic benefit for Wales.  The policy encourages the deployment of CCS where it: 

• makes a clear, measurable and sustained contribution to decarbonisation.
• supports and accelerates the transition from fossil fuels.
• contributes to growing a sustainable economy.

CCS is not a substitute for broader emission reductions and should not justify unsustainable levels of fossil fuel use or impede our transition to net-zero. 

However, the policy encourages investment in innovative CCS projects, provides additional clarity, and a solid foundation from which we will continue to work with the UK Government, regulators and developers to help deliver both Welsh and UK net-zero ambitions.

Our finalised strategic policy position for CCS will sit alongside our evolving policy framework, designed to avoid the extraction and use of fossil fuels, provide alternatives for fuel switching, and managing those emissions that cannot be avoided.