Industry, unions, academics and energy leaders send open letter to UK Government

The cross-sector coalition calls for greater support for industrial decarbonisation in the upcoming Spending Review.

In a joint letter to the Chancellor and Secretary of State for Energy Security and Net Zero, the coalition praised the government’s early steps toward decarbonising UK industry - including recent financial milestones for major carbon capture projects such as Eni’s Liverpool Bay CCS, Net Zero Teesside Power and the Northern Endurance Partnership.

However, with the upcoming Spending Review being a pivotal moment, the signatories are urging the government to go further.

They note that, while the UK has made impressive progress in reducing emissions, many of the most challenging industrial sectors to decarbonise - including cement, refining and chemicals - still lack the tools and infrastructure necessary to fully transition to a net-zero future.

They are calling for policy certainty and funding to support carbon capture, utilisation and storage (CCUS), and hydrogen infrastructure across industrial clusters - particularly for projects in the next wave of development.

Without further urgent support, these industries risk decline and could lead to the loss of thousands of skilled jobs and Britain’s broader industrial resilience.

Highlighting the recent job losses at the Grangemouth refinery and long-running pressures in British steel, the signatories warn that a lack of timely investment in decarbonisation of our industries could severely hinder domestic capabilities and impact targets such as the government’s pledge to build 1.5 million homes during this Parliament.

The coalition is calling for:

• Delivery of the most mature clusters and projects across our industrial heartlands, including the North-West, North-East, Humber and Scotland, in Track 2, Track-1 expansion and other advanced clusters delivering along the same timescales.
• Timely selection of CO₂ emitter projects alongside CO₂ infrastructure investment.
• A commitment to supporting decarbonisation on the same scale as the Clean Power by 2030 goal.

The letter emphasises that foundational industries stand ready to invest and innovate, but require a stable and supportive policy environment to do so.

With the right backing, and working towards a self-sustaining sustainable business model that promotes growth and economic security, the UK can lead the way in low-carbon industrial production and secure its position as a clean energy superpower.