UK’s carbon capture market at critical crossroads

New research from the Carbon Capture and Storage Association (CCSA) reveals the strongest-ever national pipeline for carbon capture, with five major projects reaching financial close and entering construction across Teesside, the North-West and North Wales.

However, the CCSA warns that the wider pipeline of more than 100 projects, capable of capturing 77 million tonnes of CO₂ annually, face mounting delays and investment risk.

“CCUS represents one of the UK’s greatest industrial, economic and decarbonisation opportunities,” said Olivia Powis, CCSA CEO.

“This research shows the sector is primed for growth, but only if we create the conditions that allow developers to invest and deploy.”

Stark warning

It’s hoped that these carbon capture projects, which support core industries including cement, energy-from-waste recycling and low-carbon power, will reinforce the UK’s ambitions to get ahead in industrial decarbonisation.

But the report highlights that 27 projects have been paused or cancelled since 2023, and remaining schemes are experiencing delays averaging two years.

With 75% of developers considering shifting investment overseas, industry leaders stress the urgent need for a clearer route to market and faster government action to unlock revenue streams for low-carbon products, carbon removals and CO₂ storage.

CCUS advancements are also tied to the UK’s coastal and marine infrastructure, with geological storage sites located 1 to 3km beneath the seabed. These facilities are critical for permanent carbon removal and long-term emissions reduction in hard-to-abate sectors such as shipping, aviation and agriculture.

Without swift policy decisions, the CCSA said that the UK risks losing major carbon capture projects, private investment and tens of thousands of future green jobs in 2026.