The UK’s new Greenhouse Gas Removals (GGR) Business Model is set to reshape carbon capture economics by providing a 15-year Contract for Difference (CfD) framework that stabilizes revenues for Direct Air Capture (DAC) and Bioenergy with CCS (BECCS) projects. With capital support, transport and storage cost pass-throughs, and protections against cross-chain risks, the policy reduces uncertainty and boosts project bankability.

Our analysis shows that under the right conditions, GGR incentives could deliver investment returns competitive with upstream oil and gas. For developers, the framework has the potential of moving CCS from a policy aspiration to a genuine investment class while positioning the UK at the forefront of global carbon removal deployment.

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