Dr Jeff Chapman, chief executive of the Carbon Capture and Storage Association (CCSA), said in response to the Budget:

“The carbon floor price mechanism presents an excellent opportunity to raise finance to support a new generation of low carbon fossil fuel electricity generation, using carbon capture and storage (CCS). This revenue from the fossil fuel industry can provide the investment funding to support the transition to a low carbon economy using CCS.

“The electricity market reform and the carbon floor price provide the foundations on which to build Britain’s low carbon energy future. We await the government’s forthcoming white paper on proposals to support secure, low carbon and flexible electricity production to meet our significant energy challenges.

“The CCSA welcomes government’s continued commitment to proceed with the four CCS demonstration plants as outlined in the coalition agreement. To meet the government’s own objectives for decarbonisation we will need to progress these very quickly, while simultaneously planning for an ambitious construction programme of further CCS plants.”