CARBON CAPTURE AND STORAGE: A NECESSITY NOT AN OPTION
PAUL A T DAVIES
Why is major investment in Carbon Capture and Storage (CCS) recommended by the Intergovernmental Panel on Climate Change (IPCC) and the UK’s Committee on Climate Change (CCC) as “a necessity, not an option”?
This paper summarises the need for CCS investment as an important part of the UK achieving ‘Net Zero’ by 2050.
INVESTMENT IN ENERGY
REPORT FROM THE INFRASTRUCTURE FORUM'S
ENERGY WORKING GROUP
There is a pressing need for strategic investment in energy infrastructure to set the UK on the path to meet its upcoming carbon budgets and deliver Net Zero by 2050, but the economic impacts of Covid-19 and current market frameworks present a significant barrier.
However, with a clear strategy aligned with policy employing established funding frameworks, private capital could be harnessed to help to deliver the required energy infrastructure for Net Zero and beyond.
This report suggests that providing access to development capital through a newly formed co-investment fund or Infrastructure Development Bank would help to support projects, especially those with high development costs such as Nuclear and CCUS.
It is recommended that a joint HMT-Private Sector contact group be established to come up with potential options.
IDEAS AND POLICY ADVICE
BEIS CONSULTATION ON THE RAB MODEL FOR NUCLEAR
RESPONSE FROM THE INFRASTRUCTURE FORUM
The Infrastructure Forum's RAB Working Group has submitted its response to the BEIS Consultation on the RAB Model for Nuclear.
The Working Group, comprised of experts in infrastructure finance with particular knowledge of the RAB model, UK regulatory framework and delivery of greenfield projects, considered questions posed by the consultation on the structuring of the model as well as broader Critical Success Factors necessary for setting up an investable nuclear RAB.
Particular focus was given to: the incentive mechanisms which facilitate the delivery of Value for Money for consumers, investors, the project developer and Government; ensuring a robust and credible Economic Regulatory Regime; the investability of the model; importance of a sustainable supply chain; and political support for a UK new nuclear programme.