Evolution of Economic Regulation for CO2 Storage: call for evidence

Ofgem and government are seeking views and evidence on economic regulation for CO2 storage to guide policy and support growth within an evolving Carbon Capture and Storage (CCS) sector. 

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

Background

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 

How to respond

Please respond before 31 October 2025 at CO2storagestrategy@energysecurity.gov.uk.  

This call for evidence is hosted on GOV.UK. 

Read Evolution of Economic Regulation for CO2 Storage | GOV.UK.