Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 28 May to Question 53448 on Carbon Capture and Storage, (a) how the levy will be structured and (b) who will be responsible for paying it.

There is a mixture of funding routes to support carbon capture and storage projects in the UK, including levies placed on energy suppliers and gas shippers.

There are two levies relevant to the CCUS programme. Firstly, the Electricity Supplier Obligation, which is placed on licensed electricity suppliers who may then pass this cost on to their consumers. This levy supports renewable and low carbon electricity production. The second is the Gas Shipper Obligation, which is intended to be an obligation placed on gas shippers to fund certain hydrogen production projects. The Government has recently consulted on the design of the Gas Shipper Obligation and design considerations are ongoing.