Industrial carbon capture utilisation and storage in the UK: The importance of wage responses in conditioning the outcomes of a new UK CO₂ transport and storage industry emerging in a labour supply constrained economy

Journal of Cleaner Production

January 2024

This paper addresses the question of how introducing a nascent CO₂ Transport and Storage (T&S) industry may impact the wider UK economy in the presence of persisting national labour supply constraints. Using a comprehensive economic model, the study reveals that while the emergence of T&S leads to sustained gains in employment and GDP, effective policy action is crucial to mitigate potential displacement of jobs and price pressures in other sectors. The findings underscore the importance of strategic workforce planning for achieving net-zero goals and highlight the fiscal implications associated with timely decision-making. The study emphasises the need for comprehensive analyses to guide effective policy and industry actions in the pursuit of a low-carbon economy.