Consultation outcome

Greenhouse gas removals (GGR) business models

• From: Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
• Published: 5 July 2022
• Last updated: 26 June 2023 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

Engineered Greenhouse Gas Removals: government response to the consultation on a GGR Business Model

PDF, 827 KB, 81 pages

GGR projects: request for information

MS Excel Spreadsheet, 124 KB

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Detail of outcome

The government response confirms the following positions:

• our intention to proceed with the development of a greenhouse gas removal (GGR) Business Model, applicable to a range of technologies, subject to affordability and value for money
• a ‘contract for difference’ structure as our preferred model for providing a stable price for negative emissions
• our intention to design the business model in a way that can harness the potential benefits of both the UK Emissions Trading Scheme (UK ETS) and high-integrity voluntary carbon markets, subject to further policy development
• our criteria for defining a ‘negative emission’ and principles that will guide our approach to monitoring, reporting and verification (MRV) of GGR technologies

The response outlines the following next steps:

• we will develop detailed proposals for the business model design in collaboration with industry and other stakeholders, including through the GGR Business Model Expert Group
• we will publish an update later this year, setting out our latest positions on the design of the GGR business model and eligibility criteria to go on to apply for the CCUS clusters

Request for information - respond by 1 August 2023

We would like information from projects that may wish to apply for revenue support through the GGR Business Model, so that we have the most up-to-date evidence on the project pipeline to support our policy development.

Please complete the request for information form which asks for basic information about your projects and deployment plans, and send to GGR.BusinessModels@beis.gov.uk with the subject line: ‘Request for information response’ by 5pm, 1 August 2023.

Detail of feedback received

We received 66 responses to the consultation, from a broad range of stakeholders including:

• project developers
• trade associations
• academics and research institutes
• NGOs and charities
• prospective buyers of GGR credits

The majority of respondents agreed with the proposal to develop a contractual business model for GGR projects, underpinned by evidence-based standards for monitoring, reporting and verification. The government response contains a summary of responses, based on an analysis of the common themes that emerged.

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Original consultation

Summary

We're seeking views on the design of a business model for engineered greenhouse gas removal (GGR) technologies.

This consultation ran from
9:30am on 5 July 2022 to 11:45pm on 27 September 2022

Consultation description

This consultation is seeking views on the design of a business model to attract private investment and enable GGR projects to deploy at scale from the mid-to-late 2020s.

GGR technologies will be essential to reach net zero – balancing residual emissions from hard-to-decarbonise sectors while providing new economic opportunities for the UK. The Net Zero Strategy committed to developing markets and incentives for GGRs to overcome critical barriers to investment and support the growth of this industry over the coming decade. This consultation sets out the government’s early-stage views on a new GGR business model.

We are inviting views from stakeholders on the following:

• our intention to develop a contract-based business model for early GGR projects
• options for the primary design features of the business model
• potential market frameworks for negative emissions
• our approach to the monitoring, reporting and verification of negative emissions
• the applicability of a GGR business model to specific technologies

The consultation is open to all organisations and individuals, but will be of particular interest to those with an interest in GGR technologies and negative emissions markets, including:

• project developers
• financial investors
• academics and research institutes
• carbon crediting programs and buyers

The consultation has been informed by extensive stakeholder engagement and research, including a BEIS-commissioned study on potential support mechanisms for engineered GGRs conducted by Element Energy, E4tech and Cambridge Econometrics.

Read the BEIS consultation privacy notice.

Documents

Business models for engineered greenhouse gas removals: accelerating investment in engineered carbon removals

PDF, 628 KB, 74 pages

Published 5 July 2022
Last updated 26 June 2023 + show all updates

1. 26 June 2023

   Government response published, alongside a request for information from GGR projects, to be completed and submitted by 1 August 2023.

2. 5 July 2022

   First published.