A report published by Afry and Cambridge Econometrics has revealed that, if the Climate Change Committee’s (CCC) 2030 carbon dioxide (CO2) capture target is delivered, 10,000 new green jobs could be created by the middle of this decade.
The Carbon Capture and Storage Association (CCSA) report focuses on the importance and economic impact of scaling-up Carbon Capture Utilisation and Storage (CCUS) during the 2020s.
Detailing two potential scenarios involving the impact of rolling out CCUS in the 2020s, the report first looks at the Government’s Ten Point Plan ambition to capture 10 million tonnes (Mt) of CO2 per year by 2030.
It then explores the CCC’s Sixth Carbon Budget recommendation to capture 22 Mt of CO2 per year by 2030 in their Balanced Net Zero Pathway.
The report examines the economic benefits of deploying CCUS under both scenarios using Cambridge Econometrics’ E3ME model.
The UK’s industrial heartlands is set to benefit under the CCC scenario, potentially seeing 10,000 new jobs created by the mid-2020s.
This would also give the UK early mover advantage in the global CCUS race and the possibility of a further 50,000 additional jobs through the creation of export opportunities.
Such a level of deployment is also expected to help safeguard more than 50,000 jobs in iron, steel, cement, chemicals and refining.
Commenting on the report, Olivia Powis, CCSA’s Head of UK Office, said, “All 2030 net zero scenarios clearly show that CCUS needs to significantly scale up in the 2020s.”
“To do that, the upcoming Comprehensive Spending Review should introduce a long-term funding mechanism for CCUS, just like the Government successfully did ten years ago for the renewable power sector through the Levy Control Framework.”
Annual funding requirements to deploy CCUS at the necessary scale relative to deploying the two scenarios were also mapped out, the cost ranging from £1.2bn to 2.6bn.
Offshore wind benefited in the early 2010s from long term annual funding envelopes known as the Levy Control Framework, which is set at £8.6bn for 2020/21.
Referencing the success of the Levy Control Framework ten years ago, Powis said, “With similar levels of ambition and foresight today, the current Government could ensure we become a world leader in another green industry this decade, an industry that again plays to our geographical and industrial strengths.”
She also stated that by implementing the recommendations suggested in the report, the UK can demonstrate to the world its commitment to delivering net zero, ahead of hosting COP26 later this year.