Billions risked on 'unproven' green tech, MPs warn

Published On Feb 6, 2025, 7:12 PM

The UK government is investing £21.7 billion in Carbon Capture, Utilisation and Storage (CCUS) technology to help reduce carbon emissions and achieve its net zero target by 2050. However, MPs have raised concerns over the financial impact this investment may have on consumer electricity bills and the unproven status of the technology in the UK. The government believes CCUS is necessary for reaching climate goals and argues that it will lower energy costs in the long run. Critics suggest that contracts with CCUS developers should include profit-sharing arrangements to ensure taxpayer benefits from potential successes.

Stock Forecasts

ICLN

Positive

Investing in CCUS technology may represent a long-term opportunity as the sector develops, particularly with government backing. However, the immediate financial burdens may pose risks to certain businesses and consumers, reflecting volatility in energy sectors tied to this policy.

XLE

Negative

Concerns over the impact of CCUS funding on energy bills suggest potential negative implications for energy sector stocks in the near term, particularly if costs are passed on to consumers without guaranteed returns.

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