Ministers are reportedly considering a policy that would require fossil fuel companies to pay for carbon capture and storage (CCS) for any North Sea drilling. This move could free up an estimated £21 billion currently allocated for CCS subsidies.
The potential policy is under "live" consideration, according to reports, and government estimates suggest CCS could create approximately 50,000 UK jobs in the 2030s. This comes as the government navigates the balance between economic growth and climate commitments.
Andy Burnham's government previously approved the Jackdaw gasfield in the North Sea and is soon to decide on the larger Rosebank oilfield northwest of Shetland. Additionally, Chancellor John Healey has declared support for a third runway at Heathrow, while there are also signs of potential weakening of electric vehicle targets for the car industry.