The cost of decarbonising the UK’s power system by 2050 could rise by £30 billion after the UK Government scrapped its carbon capture and storage (CCS) competition, according to a new report.

The House of Commons’ Environmental Audit Committee asked the National Audit Office to investigate the Treasury’s decision last autumn to cancel the competition.

The request came as part of the committee’s wider probe into sustainability at the Treasury.

The Treasury was criticised for its short-term attitude and its inability to work with other government departments.

‘Great deal of criticism’

Stuart said: “The Treasury’s axing of the UK’s CCS competition brought a great deal of criticism.

“It was a premature decision, made before the two preferred project bidders, White Rose and Peterhead, had even submitted their design studies.

“It also reflected a lack of understanding of the strategic value of CCS to the UK’s climate ambitions as well as our perceived leadership on climate action globally.”

> See the SCCS's statement