New research from the Carbon Capture and Storage Association (CCSA) indicates that the UK’s carbon capture sector has reached an inflection point: while the national pipeline of CCUS projects is stronger than ever, policy uncertainty is slowing progress and putting investment at risk.
The CCSA’s 2025 Delivery Plan update highlights clear signs of momentum. Five major CCUS projects, located across Teesside, the North-West, and North Wales, have now reached financial close and begun construction.
These projects are already supporting local jobs and safeguarding domestic heavy industries such as cement, energy-from-waste and low-carbon power generation.
Yet the scale of the pipeline extends far beyond these initial deployments. More than 100 additional CCUS projects are now in development across the UK, with the potential to collectively capture and store 77 million tons of CO2 annually, roughly equivalent to the yearly emissions of Austria.
The analysis reinforces long-standing assessments from the Climate Change Committee and the UK government’s own Carbon Budget plans: there is no credible decarbonisation pathway without CCUS.
Carbon removals play a growing role
Within the broader pipeline, 18 million tons of CO2 per year come from carbon removal technologies. These approaches are essential to addressing residual emissions from hard-to-abate sectors like aviation and agriculture and will be critical to meeting long-term net-zero goals.
Despite the progress, the CCSA highlights mounting challenges. Since 2023, 27 capture projects have been paused or cancelled. Those that remain active face average delays of two years.
Three-quarters of developers surveyed say they may shift investment overseas without clearer policy signals.
Key concerns include slow government decision-making, delayed funding processes, and the absence of a viable route to market for projects outside the government-designated clusters.
Relevant: CCSA And Stakeholders Share Perspectives On Integrating CDR In EU’s ETS
To prevent capital flight and keep the UK on track, the CCSA urges the UK government to prioritise 2026 delivery milestones and establish a transparent allocation framework for future projects. Unlocking markets for low-carbon products, carbon removals and CO2 storage will be essential to transitioning the sector toward long-term commercial viability.
At the report launch, Minister McDonald reiterated the government’s commitment to building a world-leading CCUS industry, pointing to ongoing construction at Padeswood cement works and the Protos ERF. He added that efforts are underway to bring Acorn and Viking CCS to final investment decisions during this parliament and to expand connections to the East Coast Cluster.
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