MS, Cabinet Secretary Economy
Energy and Planning: 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.
