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The UK Government is seeking to encourage CCS projects and announced as part of its 2007 Budget a competition to promote the construction of a power station with CCS technology. The CCS component of the winning project(s) will receive Government funding following consideration of plant designs and pre-feasibility studies. The UK has also established a cross Government task force to look at a range of issues related to the regulation of CCS in the UK including licensing of offshore CO2 storage and responsibility for long term liability. A consultative process to consider options for regulation will be launched during 2007.

In May 2007, the Department of Trade and Industry (DTI) released a White Paper on energy which sets out the UK Government's international and domestic energy strategy to respond to the challenges of climate change, and to ensure secure, clean and affordable energy. The White Paper was developed to deliver the UK Government’s key energy policy goals including to put the UK on a path of cutting CO2 emissions by roughly 60 per cent by 2050, with real progress by 2020. The White Paper was developed following a series of public consultations in response to the UK Government’s Energy Review, The Energy Challenge, which was released by DTI in July 2006.

The Department of Environment, Food and Rural Affairs is responsible for coordinating the UK Government's participation in the nZEC project. The UK is leading the first phase of the project which is a 3 year feasibility study to examine the viability of different technology options for capture of CO2 and the potential for geological storage in China.