Carbon capture and storage (CCS) is a key mitigation route for hard-to-abate industrial emissions. This note sets out the principal legal and regulatory considerations for CCS projects in England and Wales and identifies practical issues to address at each development stage. It is prepared for an international business audience engaging with UK projects from our London branch at Holborn Gate, 330 High Holborn, London, WC1V 7QH, England.

Regulatory and consenting landscape

Projects typically involve a mix of environmental, subsurface and planning consents. For storage in offshore formations, the licensing and consenting framework is centred on the North Sea Transition Authority (NSTA) under the Energy Act 2008 and associated regulations. Onshore injection and storage may engage environmental permitting regimes administered by the Environment Agency (England) or Natural Resources Wales (Wales), and the Marine Management Organisation (MMO) where the marine environment is involved. Health and safety regulation for wells and high-pressure infrastructure falls to the Health and Safety Executive (HSE).

Commercial structures and contractual issues

Key commercial arrangements include CO2 capture and offtake agreements, transport (pipeline or shipping) contracts, storage licences/leases and long-term stewardship arrangements. Contracting must clearly allocate title to CO2, liability for containment and monitoring obligations, indemnities for third-party impacts, and decommissioning responsibilities. Government support mechanisms and cluster sequencing supported by central government influence commercial viability; project contracts should be drafted to reflect the availability of public funding, state aid constraints and evolving policy frameworks.

Project development, risk allocation and technical matters

Developers should coordinate subsurface appraisal, monitoring and verification plans with consenting timelines. Key legal issues include:

• Subsurface rights and access: ascertain licence or lease boundaries and any Crown or private interests.
• Environmental compliance: baseline surveys, EIA requirements, and permit conditions for injection and monitoring.
• Long-term liability and transfer regimes: contractual and statutory provisions for post-closure stewardship and financial security.
• Interfaces with existing infrastructure: rights of way, pipeline crossings and third-party utilities.

Practical checklist for early-stage CCS deals

1. Confirm applicable consenting authorities (NSTA, Environment Agency/NRW, MMO, local planning) early in feasibility studies.
2. Secure land access and surface rights; map subsurface ownership and any mineral/Crown interests.
3. Define commercial model: capture-only, integrated capture+transport+storage, or hub-and-cluster participation.
4. Allocate technical performance obligations, monitoring standards and liability caps in contracts.
5. Design financial security and decommissioning funding mechanisms to satisfy regulators and financiers.
6. Engage with government cluster programmes and funding streams, and check eligibility rules and timelines.

Jurisdiction and sources

Primary official sources and regulators to consult include:

• Department for Energy Security and Net Zero (DESNZ) – UK CCUS policy and cluster sequencing.
• North Sea Transition Authority (NSTA) – offshore storage licensing and guidance.
• Environment Agency and Natural Resources Wales – environmental permitting for injection and monitoring.
• Marine Management Organisation (MMO) – marine licences where applicable.
• Health and Safety Executive (HSE) – safety regulation for wells and industrial sites.
• UK Emissions Trading Scheme (UK ETS) – carbon pricing and trading implications.
• The Crown Estate – seabed rights and leasing for offshore infrastructure.

Devolved administrations (Scotland and Northern Ireland) use related but distinct consenting and environmental authorities; consultees should check the relevant devolved regulators where projects cross territorial boundaries.

General information only; not legal advice and not a substitute for advice on a particular matter.