SAU publishes report to DESNZ on ICC and Waste ICC subsidy schemes

Article summary

The Subsidy Advice Unit (SAU) has published a report, advising the Department for Energy Security and Net Zero (DESNZ) on the proposed Industrial Carbon Capture (ICC) and Waste ICC subsidy schemes. The report evaluates DESNZ's assessment of compliance with the Subsidy Control Act 2022. It identified positive features in DESNZ's assessment, including clear descriptions of market failures and evidence of how the subsidy would influence beneficiaries' economic behaviour. However, the SAU also noted areas for improvement, suggesting that the assessment should provide more details on how negotiations with beneficiaries resulted in the minimum necessary revenue support.