Recognising non-pipeline transport methods (road, rail, shipping) for transporting Co2 into geological storage (CCS)

Overview

The UK Emissions Trading Scheme (UK ETS) Authority (UK Government, Scottish Goverment, Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland) is seeking feedback on a proposed regulatory framework which will enable emitters sending CO₂ to permanent storage via non-pipeline transport (NPT) to deduct the amount of permanently stored CO₂ from their UK ETS allowance surrender obligations.

Carbon Capture and Storage (CCS) will be crucial for the UK to meet its net zero targets, especially for sectors such as steel, cement, and chemicals that lack alternatives for deep decarbonisation. Sites without direct pipeline connections will require NPT to access CCS, sending CO₂ by road, rail, or ship. However, the UK ETS currently lacks a framework for operators to deduct CO₂ transported to storage via such methods from their reportable emissions.

The purpose of this consultation is to propose a regulatory framework that will allow for UK ETS deductions of permanently stored CO₂ that is transported via NPT. The consultation proposes options and seeks views on the approach outlined, with particular focus on:

• The Authority’s regulatory model for NPT and UK ETS requirements for participants in NPT value chains.
• The regulation of transport emissions.
• The treatment of CO₂ transporting ships.
• The regulation of intermediate storage sites.