Future Network Strategy for CO₂ Transport and Storage

On 6 August 2025, DESNZ has asked the public for input on how to build and improve the country’s CO₂ transport and storage networks to support its climate goals and the growing Carbon Capture, Usage and Storage (CCUS) sector.

CCUS will play a key role in helping the UK reach its 2050 Net Zero target as the UK will need a reliable system to move and store CO₂. The CCUS network strategy includes:

• Pipelines and non-pipeline solutions;
• Onshore and offshore infrastructure; and
• Support for both UK-based and international projects.

The strategy aims to shift from government-funded systems to a market-driven approach, encouraging private investment and innovation. DESNZ is seeking views on:

• How to design and expand CO₂ networks;
• What technical and commercial standards are needed;
• How to make the system financially sustainable; and
• What kind of regulation will support long-term growth.

Specific areas of interest that the DESNZ is seeking feedback on, include the following topic areas:

• Intervention, Dependencies and Risk Appetites: Early CCUS projects relied on government-led funding and licensing, but future efforts aim to balance risks between public and private sectors. To encourage private investment, the government is exploring ways to reduce risks - such as leakage and stranded assets - through better data, insurance solutions, and co-investment from public financial bodies. Learnings from similar projects in the EU may also guide future UK policy.
• Overcoming Barriers - Network Utilisation and Optimisation: The more efficiently a pipeline is used, the lower the cost per tonne of CO₂ transported and stored, and the more CO₂ can be permanently stored each year. The goal is to build flexible, cost-effective networks that support a mix of technologies and help the UK reach its net zero target.
• Delivery models and Emerging Opportunities: The UK government is exploring unbundling the CO₂ transport and storage value chain, allowing separate operators for pipelines, storage, and non-pipeline transport. This could boost flexibility, competition, and investment by tailoring network design to specific needs.
• Maturing Risk Management: The government is exploring ways to reduce risk in CCUS by allowing different parts of the CO₂ network to be operated by specialised entities.

After the call for evidence closes on 31 October 2025, DESNZ will review the feedback and publish a summary in early 2026.

With appreciation to Amineh Farasatmand for her contribution in preparing this blog.