Billions Risked on 'Unproven' Green Tech, MPs Warn

Billions Risked on 'Unproven' Green Tech, MPs Warn

MPs are raising alarm bells over the government’s plan to invest billions in carbon capture technology—a move they argue could saddle consumers with higher energy bills. The government has pledged nearly £22bn for Carbon Capture, Utilisation and Storage (CCUS) facilities, which work by capturing carbon dioxide emissions from industry and storing them underground. A significant portion of this investment, roughly three-quarters, is expected to be recouped through consumer bills.

Concerns Over the Financial Impact

On Friday, the House of Commons' Public Accounts Committee voiced serious concerns that the government had not adequately assessed how this massive expenditure might impact households and businesses.

“It is an unproven technology, certainly in this country. And we are concerned this policy is going to have a very significant effect on consumers' and industry's electricity bills,”
— Sir Geoffrey Clifton-Brown, Chair, Public Accounts Committee

His remarks underscore the apprehension that the financial burden of this venture could prove costly for everyday users, particularly if the technology does not deliver as expected.

The Government’s Stance and Climate Ambitions

Speaking on the BBC Today programme, Secretary of State for Energy, Ed Miliband, acknowledged that while CCUS remains a novel technology in the UK, it is essential for tackling climate change.

“CCS is an innovative technology in terms of being used at scale, but all the expert advice says if we don't do this we are never going to cut global emissions,”
— Ed Miliband

Miliband emphasized his “100% commitment” to the government’s climate goals, which include reaching net zero emissions by 2050. As the nation shifts away from fossil fuels towards renewable energy, certain industries—like cement production—will continue to emit CO2. For these sectors, CCUS is viewed as a critical tool to prevent greenhouse gases from entering the atmosphere.

Global Context and Funding Challenges

The UK's independent climate watchdog and the UN’s Intergovernmental Panel on Climate Change (IPCC) both agree that technologies like CCUS will be crucial in meeting net zero targets. By 2050, the government aims to prevent the emission of 50 million tonnes of CO2—over 10% of the UK's current output—by investing £21.7bn in the technology. This funding, announced last October, is earmarked for clusters of carbon capture projects in areas such as Merseyside and Teesside, with the promise of creating thousands of jobs and attracting further private investment.

Yet, not everyone is convinced. Dr Stuart Jenkins, a research fellow at the University of Oxford, pushed back against the “unproven” label, arguing that the term fails to acknowledge the engineering challenge that CCUS represents. He pointed out that although there are no commercial CCUS sites in the UK yet, around 45 such facilities operate globally, capturing roughly 50 million tonnes of CO2, with more than 700 projects currently proposed or under development, according to the International Energy Agency.
 

Despite this, Dr Jenkins agreed with the committee that there are valid questions regarding the sustainability of the current funding model. The committee has recommended a thorough assessment of the programme’s full financial impact on consumers, particularly in light of current cost-of-living pressures. They were also “surprised” to learn that the government had signed two contracts with CCUS developers last year without ensuring that successful projects would yield direct benefits—such as profit sharing or reduced energy bills—for the public.

“If you were a venture capitalist investing this sort of sum of money, which is effectively what the taxpayers are doing here, you would expect to have a big equity stake in this whole thing,”
— Sir Geoffrey Clifton-Brown

A Call for a Smarter Investment Model

The committee’s recommendations include revising future contracts to incorporate profit-sharing mechanisms, thereby aligning public investment with tangible returns. The government contends that the £21.7bn investment is expected to unlock an additional £8bn in private sector funding over the next 25 years. Meanwhile, Mirte Boot, co-founder of the Carbon Balance Initiative and a research associate at the University of Oxford, advocates for an alternative long-term financing strategy. Her team suggests introducing a carbon storage mandate that legally obliges fossil fuel producers to store a portion of the CO2 they generate, or face a financial penalty—a model that could offer both fairness and investment certainty.

As the debate rages on, the future of CCUS hangs in the balance, with its success or failure poised to shape not only the UK's climate strategy but also the economic burden borne by consumers. Stay tuned to The Horizons Times for further updates on this unfolding story.