POLICY BRIEF: The importance of early employment and government revenue gains in governing the wider economy costs and benefits of deploying UK CCUS

Summary

Authors:

Karen Turner
Antonios Katris
Christian Calvillo
Hanna Corbett
Julia Race

University of Strathclyde

The importance of early employment and government revenue gains in governing the wider economy costs and benefits of deploying UK CCUS

2023

This policy brief explores the potential transition of jobs from the existing oil and gas industry to a new Carbon Capture and Storage (CCS) sector, specifically in CO2 Transport and Storage (T&S), as part of the UK’s efforts in Carbon Capture Utilisation and Storage (CCUS). Persistent worker and skills shortages in the UK labour market pose challenges to realising the transition’s full potential in job creation, sustained GDP, and associated revenue gains. The brief offers new insights on how addressing labour market shortages could impact the employment landscape, government revenue, and broader macroeconomic outcomes of establishing a new CO2 T&S industry in the UK.