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NAO criticises lack of funding clarity for CCS competition

NAO criticises lack of funding clarity for CCS competition


A government programme to support the development of carbon capture and storage (CCS) was undermined by uncertainty on long-term funding requirements, the National Audit Office (NAO) has said. In a report, issued on Friday 20 January, the NAO said that, while DECC and the Treasury had agreed that £1bn would be available for the government’s CCS commercialisation competition, they had not agreed on the funds that would be offered, through contracts for difference, to support the projects once operational. It said: “The lack of agreement between the department and HM Treasury on a limit to the support through CfDs meant the department could not tailor its approach to the competition in a way that matched an agreed affordability constraint.”

NAO