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NAO REPORT: CCS cancellation could increase cost of meeting climate targets

20 July 2016

Our analysis of the value of CCS to a future low carbon UK energy system has been consistent. A system that does not include CCS doubles the cost of meeting UK energy and climate change targets with substantial increases in system costs appearing from 2020 onwards. Our latest research published earlier this year shows that there are no technical barriers to CO2 storage offshore in the UK, and coordinated, colocated shared infrastructure together with the deployment of existing technologies can reduce initial “demonstration” costs by up to 45%. CCS is the largest lever that can be used in a cost effective decarbonisation of the UK energy system. The challenge is to maintain the option. It is a long term solution but time is running out for its full benefit to be felt at an energy system level from both an economic and emissions perspective.