Share on LinkedInShare on LinkedIn

ARTICLE · 02 SEPTEMBER 2025

Future Network Strategy For CO₂ Transport And Storage

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
Contributor
Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

We have one of the largest Southeast Asia international law practices, working across the region...

View firm profile
Explore more from Herbert Smith Freehills Kramer LLP

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...

United KingdomEnvironment

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from