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The government has pledged nearly £22bn to fund projects that capture greenhouse gases from polluting plants and store them underground, as it races to reach strict climate targets.

The plans are designed to generate private investment and jobs in Merseyside and Teesside, two industry-heavy areas that will be home to the new “carbon capture clusters”.

Prime Minister Sir Keir Starmer said the move was “reigniting our industrial heartlands by investing in the industry of the future”, though there are questions about how best to use this expensive technology.

Carbon capture, utilisation and storage (CCUS) has been developed to combat climate change.

It captures the planet-warming carbon dioxide released from burning fossil fuels or from heavy industry, and puts it to use or stores it underground.

How CCUS can work, by capturing the carbon dioxide emissions from something like a gas plant or cement factory, transporting them through existing gas pipes, and storing them in a depleted oil or gas field under the sea.
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How CCUS can work, by capturing the carbon dioxide emissions from something like a gas plant or cement factory, transporting them through existing gas pipes, and storing them in a depleted oil or gas field under the sea

It is expensive and difficult, but the UK’s climate advisers, the Climate Change Committee (CCC), and United Nations scientists say it is essential to get the world to net zero, which the UK is targeting for 2050.

Net zero means cutting emissions as much as possible and offsetting or capturing the stubborn remaining ones.

More on Climate Change

Today the government has committed up to £21.7bn over 25 years, to be given in subsidies to sites in the Teesside and Merseyside “clusters” – from 2028.

Analysis: After warning of tightened purse strings, the public may well be perplexed by Reeves

It will be split between three projects, which are capturing carbon dioxide released either from making hydrogen, generating gas power or burning waste to create energy from 2028.

The gas – up to 8.5 million tonnes of carbon emissions – will be locked away in empty gas fields in the Liverpool Bay and the North Sea.

The government hopes it will attract £8bn in private investment, create 4,000 direct jobs and support a further 50,000.

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Can carbon capture help fight climate change?

The cash will pay for fewer projects than hoped – the last government suggested a £20bn pot of money for similar projects – but the new administration says those plans weren’t properly costed, and the funding hadn’t been allocated.

The funding is to come from a mixture of Treasury money and energy bills, but the government has been coy about the split so far.

Questions on this might cause a headache for Labour, which has been complaining about an inherited £22bn budget black hole.

Sir Keir said the announcement will “give industry the certainty it needs” and “help deliver jobs, kickstart growth, and repair this country once and for all”.

Will it help jobs and business?

It hopes to fund the first large scale hydrogen production plant in the UK, and help the oil and gas sector and its transferable skills move over to green industries.

It has been welcomed by industry and the unions, coming just a week after job losses from the closures of Port Talbot Steelworks and Ratcliffe coal power station.

GMB general secretary Gary Smith said the news “shows what levelling up can really mean: good, well paid jobs reinvigorating communities”.

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Does carbon capture, utilisation and storage (CCUS) work?

CCUS has made slow progress: promised for decades but barely scaled, with just 45 commercial sites globally.

However, it began to pick up in the last few years, with 700 plants now in some stage of development around the world.

The world’s first CCUS plant has stored CO2 under Norway’s waters since 1996, though elsewhere a few concerns linger about whether some projects leak gas.

James Richardson, acting chief executive of the CCC, said: “We can’t hit the country’s targets without CCUS, so this commitment to it is very reassuring”.

How should CCUS be used?

Some believe expensive CCUS should be preserved for areas like cement or lime-production, that are very hard to clean up in any other way, rather than for sectors for which there are greener alternatives.

Greenpeace UK’s Doug Parr warned of a “risk of locking ourselves into second-rate solutions”.

The government hopes this funding for the three sites that are ready to go will lay the foundations for further CCUS projects.

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Labour dealt historic loss in Caerphilly by-election – as Plaid Cymru win seat

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Labour dealt historic loss in Caerphilly by-election - as Plaid Cymru win seat

Plaid Cymru have won the by-election in the Senedd seat of Caerphilly for the first time.

The Welsh nationalist party secured 15,960 votes – and candidate Lindsay Whittle cried as the result was announced.

Mr Whittle is 72 years old and had stood as a Plaid candidate 13 times since 1983. He will now hold the seat until the Senedd elections next year.

This by-election was widely regarded as a two-horse race between Plaid Cymru and Reform UK, and the result marks a considerable blow for Nigel Farage.

Analysis: Reform candidate looked neglected and dejected


John Craig

Jon Craig

Chief political correspondent

@joncraig

In a by-election in the birthplace of the comedian Tommy Cooper, it was Plaid Cymru that had the last laugh.

During the campaign, Nigel Farage and Reform UK’s candidate Llyr Powell had posed for photos in front of the statue of the legendary comic in Caerphilly.

But when the result was declared at 2.10am at the count in the town’s leisure centre, Mr Farage – who’d been campaigning for Mr Powell on polling day – was nowhere to be seen.

In fact, the joke among Plaid supporters at the count was that long before the declaration Mr Farage was halfway down the M4 on his way back to London.

Read Jon’s full analysis here.

His candidate Llyr Powell received 12,113 votes – denying a victory that would have strengthened claims that Reform can convert a large lead in opinion polls into election wins.

Nonetheless, the party’s performance is a marked improvement on 2021, when it received just 495 votes.

More than anything, the result is a humiliating and historic defeat for Labour, who had held Caerphilly at every Senedd election since it was created in 1999 – as well as the Westminster seat for over a century.

Its candidate Richard Tunnicliffe secured 3,713 votes and finished in third place, with Welsh Labour describing it as a “by-election in the toughest of circumstances, and in the midst of difficult headwinds nationally”.

Turnout overall stood at 50.43% – considerably higher than during the last ballot back in 2021.

Giving his acceptance speech after the result was confirmed, Mr Whittle described how he had been “absolutely heartened” by how many young people were involved in the by-election – and said the result sends a clear message.

He said: “Listen now Cardiff and listen Westminster – this is Caerphilly and Wales telling you we want a better deal for every corner of Wales. The big parties need to sit up and take notice.

“Wales, we are at the dawn of new leadership, we are at the dawn of a new beginning – and I look forward to playing my part for a new Wales, and in particular, for the people of the Caerphilly constituency. I thank you with all my heart.”

Mr Whittle quipped Plaid’s victory “was better than scoring the winning try for Wales in the Rugby World Cup”.

And looking ahead to the next year’s elections, he added: “[This] result shows what’s possible when people come together to back practical solutions and protect what matters most.

“We’ve beaten billionaire-backed Reform and, with the same determination, we can do it again in May 2026. Caerphilly has shown the way – now Wales must follow.”

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Plaid Cymru leader Rhun ap Iorwerth has everything to celebrate after winning the Caerphilly by-election.

Plaid Cymru leader Rhun ap Iorwerth told Sky News his party’s victory is the “start of a reset of politics in Wales”.

He said Plaid’s goal is to take over the Senedd for the first time in May next year.

“I want to see that through now. I’ve made it clear, said it in my conference speech a couple of weeks ago, we have to replace Labour,” he said.

“And it’s not just for its own sake, it’s so we get better outcomes for Wales. That’s what Plaid Cymru’s always about.”

Labour minister labels result ‘disappointing’

Cabinet Office minister Nick Thomas-Symonds told Sky News that “frustrations” with the “pace of change” led to Labour’s loss.

“I’m not shying away from, how disappointing the result is,” he said.

“What I found on the doorsteps was a real desire for more change, a frustration about the pace of change. That was coming through to me very strongly when I was speaking to people, I think that’s been reflected in the result.”

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Labour ‘not shying away’ from loss

Labour’s deputy first minister in the Senedd, Huw Irranca-Davies, said the prime minister must “get back to bread and butter things” such as the cost of living, instead of focussing on immigration.

“We’ve got to get better,” he said.

“If it turns out as we think, as the polls have shown tonight, after a really good campaign with a really good Labour candidate in Richard, then we’ve got to talk about how do we get back to bread and butter things: cost of living, the state of the local community, the high street, the green spaces, the money in people’s pockets.

“And that’s a task for both Welsh Labour and UK Labour as well.”

First Minister Eluned Morgan congratulated Mr Whittle on his return to the Senedd and said: “We take our share of the responsibility for this result. We are listening, we are learning the lessons, and we will be come back stronger.”

Reform’s chair David Bull suggested the party’s strong performance in the polls cost them the by-election to Plaid Cymru.

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‘Extraordinary’ result for Reform

“I actually think the problem for us was the MRP poll, which was released two or three days ago,” he told Sky News.

“It showed us on 42%, Plaid on 38%, and it changed some people’s minds. I’ve heard tales from Lib Dem supporters, even Tories, actually voting tactically for Plaid to keep us out.”

Nigel Farage added that Reform’s candidate lost to “a party that people know well and to a popular local politician”.

“The Senedd elections next year are a two-horse race between Reform UK and Plaid Cymru,” he said.

The Conservatives and the Liberal Democrats were among the parties that lost their deposits.

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Bitcoin-only app Relai gets EU green light under MiCA

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Bitcoin-only app Relai gets EU green light under MiCA

Bitcoin-only app Relai gets EU green light under MiCA

Switzerland’s BTC-only investment app, Relai, obtained a MiCA license in France, aiming to bring Bitcoin to as many people as possible.

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JPMorgan reportedly plans to let clients borrow against their Bitcoin and Ether

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JPMorgan reportedly plans to let clients borrow against their Bitcoin and Ether

JPMorgan reportedly plans to let clients borrow against their Bitcoin and Ether

This could make Bitcoin and Ether more attractive to institutional investors seeking to maximize the utility of their assets.

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