Leading industry bodies have warned the Energy Secretary that urgent Government action on industrial decarbonisation is needed. Without it, the UK risks accelerating the decline of its foundational industries, putting jobs, investment and energy security at risk.
In a joint letter, senior representatives from the Carbon Capture and Storage Association (CCSA), Hydrogen UK and Electrify Industry warn that without clear policy direction and investment signals, the UK risks further decline in its critical industrial base.
The letter comes amid mounting pressure on UK heavy industry. High electricity costs, global competition and policy uncertainty are already driving closures and constraining investment, weakening the UK’s ability to produce essential materials for infrastructure, healthcare, construction and energy systems.
The signatories argue that industrial decarbonisation is central to economic resilience and national security in an increasingly volatile global environment. Without decisive intervention, the UK risks deeper reliance on imports, exposure to supply chain shocks and the erosion of domestic industrial capability.
The letter calls on the Government to:
- Reduce industrial electricity costs and deliver the British Industrial Competitiveness Scheme
- Accelerate key technologies including electrification, hydrogen and carbon capture, utilisation and storage
- Streamline planning and regulatory processes
- Provide long-term policy and funding certainty
- Develop a strong pipeline of investable decarbonisation projects
- Expand workforce skills through the Clean Jobs Plan
- Introduce a robust carbon border adjustment mechanism for all affected industries
Industry leaders warn that continued delays, including the long-overdue Hydrogen Strategy, are undermining investor confidence, with major projects already struggling to progress without clear routes to market.
Read the full letter HERE.
Olivia Powis, CEO of the CCSA, said: 'Carbon capture, utilisation and storage (CCUS) is critical to the future of UK industry. Without it, key sectors like cement and refining cannot decarbonise or stay competitive, risking industry leaving the UK. Therefore, the Government must now move at pace to provide the certainty needed to unlock billions in investment and deliver CCUS projects at scale.'
Clare Jackson, Chief Executive of Hydrogen UK, said: 'Supporting industrial decarbonisation is crucial to protect the UK’s industries, jobs and supply chains that underpin our economy and national security. Hydrogen is essential for the hard-to-abate sectors that cannot simply electrify, but the ongoing delay of the UK’s refreshed hydrogen strategy is now putting real projects at risk. The long-overdue decisions for the second Hydrogen Allocation Round, (HAR2), is holding back investment in the North East, North West and Yorkshire and the Humber, creating a regional divide between communities that should be at the heart of the UK’s clean industrial future. With major investors ready to move and billions of pounds waiting to be deployed, Government needs to play its part and provide the certainty investors and industry needed to move forward.'
Daniel Paterson, Director of Policy and Government Affairs, Electrify Industry
'Britain’s artificially high costs on electricity bills are a drag anchor on industrial investment. Despite electrification offering the opportunity to modernise industry, improve productivity, and reduce carbon emissions, British industrial employers are locked out of such investment options. Without direct action on the policy and infrastructure costs that inflate the price of electricity for British industry, our nation’s employers and innovators will fall behind in the global race to modernise.'
The letter concludes by urging the Government to treat industrial decarbonisation as a national security priority and calls for a meeting with ministers to discuss how industry and Government can work together to deliver the IDS.
Source: CCSA
