Evolution of Economic Regulation for CO2 Storage: call for evidence

Details of outcome 

Alongside government, we have summarised the responses received. We will use the information gathered to inform policy development on economic regulation. We will maintain close collaboration with industry, ensuring ongoing dialogue shapes effective and inclusive approaches.

Read the full outcome 

You can read the full summary of responses and details on the next steps of the Evolution of economic regulation for CO2 storage on GOV.UK.

Original call for input

Call for input description

To maintain investment and continue development of CO2 stores, we would like to consider whether alternative forms of economic regulation for CO2 storage are appropriate as the market transitions towards a self-sustaining market. This Call for Evidence investigates whether the Regulated Asset Base (RAB) model of economic regulation for CO2 storage will continue to best meet the needs of users, developers, investors, and consumers as the CCS market matures, whilst also supporting the UK’s Carbon Budgets and net zero.

We are seeking views and evidence on elements of the economic regulatory regime for CO2 storage in these key areas:  

1. Economic Regulation and Natural Monopolies
2. Competition and Storage Costs
3. Investment: Equity and Debt Considerations

Who should respond

We welcome responses from anyone with an interest in the policy area. We envisage that this Call for Evidence will be of particular interest to:

• those intending to use UK CO2 storage services for domestic and international storage of CO2 including CO2 capture facilities and transport providers
• any consumers whose interests may be impacted
• current and future CO2 storage developers and infrastructure providers
• those intending to finance the development of a CO2 storage site including prospective investors or investment bodies
• trade bodies, academics and think tanks