A WESTMINSTER committee has warned that the UK Government’s last-minute decision to pull funding for carbon capture and storage (CCS) will delay development of the technology in the UK and could make the meeting of climate change commitments agreed in Paris “challenging”.

The warning came in a report from the Energy and Climate Change Committee, whose chairman, the SNP’s Angus MacNeil, said: “If we don’t invest in the infrastructure needed for carbon capture and storage technology now, it could be much more expensive to meet our climate change targets in the future.

“If the government is committed to the climate change pledges made in Paris, it cannot afford to sit back and simply wait and see if CCS will be deployed when it is needed.”

The committee said CCS technology was ready for large-scale pilots on power stations, but the transportation and storage infrastructure needed to carry the carbon dioxide required large upfront investments.

Projects in Peterhead and North Yorkshire had been cancelled because of the UK Government’s sudden decision to cancel its £1 billion commercialisation competition.

Its report warned that as a result the opportunity to develop CCS infrastructure in the UK in the early 2020s is likely to have been missed. The momentum that had built up over recent years had “suddenly come to a halt” and the industry and investors were losing confidence.

MacNeil added: “The manner in which the government pulled the plug on the CCS commercialisation competition was disappointing.

“UK companies had been working towards this for years and were only weeks away from final proposals.

“This is the latest in a series of snap decisions that have damaged confidence in the government’s energy policy.”

The report added that the government might have lost an opportunity to exploit existing oil and gas assets in the North Sea, which could have generated additional revenues. The committee inquiry had heard that empty North Sea oil fields could potentially store European industrial emissions for the next 100 years.

MPs on the committee are calling on the Department for Energy and Climate Change to assess the financial and other benefits of using existing North Sea oil and gas infrastructure to facilitate carbon capture and storage commercially.

MacNeil said: “The department must devise a strategy to ensure carbon capture and storage technology can start delivering carbon savings by the 2020s.”

“Only last week, ministers rejected the need for such a strategy, but the industry and investors are crying out for this certainty.”