Chancellor Rachel Reeves announces a major £28.6 million National Wealth Fund investment in a carbon capture pipeline project in the Peak District, aiming to reduce emissions from cement and lime industries while securing over 12,000 jobs and supporting the UK’s broader £21.7 billion CCS strategy to meet net zero by 2050.
The UK government is advancing its commitment to net zero emissions by announcing a significant investment from the National Wealth Fund (NWF) into carbon capture and storage (CCS) infrastructure. Chancellor of the Exchequer Rachel Reeves revealed that the NWF will allocate £28.6 million towards a carbon capture pipeline project in the Peak District, which aims to curb emissions from the cement and lime industries by storing carbon beneath the Irish Sea. This initiative is part of a larger £21.7 billion funding commitment over 25 years designed to develop CCS projects critical to reducing emissions in energy-intensive industrial sectors.
Reeves emphasised the broader economic benefits of this investment, stating that the £3 billion injection from the National Wealth Fund into the economy is expected to secure 12,500 jobs across Derbyshire, Staffordshire, and the North West, while modernising key industrial sectors. This move aligns with the Labour government’s agenda to stimulate growth and deliver green infrastructure amid domestic political challenges, including internal party disputes and questions over fiscal discipline. The announcement also serves to highlight the government’s proactive stance on climate action and economic renewal.
The National Wealth Fund, established to leverage government spending with private-sector capital, targets up to £27.8 billion in investments in vital sectors like gigafactories, green hydrogen, and carbon capture. Working alongside industry partners and regional authorities, the NWF uses blended finance strategies to manage risk and increase private investment. A new initiative is also encouraging pension funds to invest in UK companies alongside the British Business Bank, aiming to attract three times as much private capital for every public pound spent.
This investment fits into the UK’s broader CCUS strategy, which has seen significant milestones including the selection of initial cluster projects, financial close for key ventures, and ambitious government commitments to building a UK-based supply chain. The government aims for CCUS to generate £4-5 billion in annual gross value added and support up to 50,000 jobs across the 2030s. Such projects are expected to be pivotal in achieving the UK’s net zero target by 2050, with operational plants scheduled to come online by 2028 and beyond.
Industry voices have welcomed the National Wealth Fund’s involvement. The Carbon Capture and Storage Association (CCSA) specifically praised the government’s strategy, highlighting its role in delivering substantial emissions reductions by 2035 and clean power by 2030. According to CCSA CEO Olivia Powis, the sector could attract £26 billion in private funding and contribute £94 billion in gross value added by mid-century, underscoring the economic and environmental importance of carbon capture technologies.
Together, these developments signal the UK government’s intent to position the country as a clean energy leader, strengthen industrial growth, and create sustainable employment opportunities, all while tackling the pressing climate challenge.
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Source: Noah Wire Services
- https://www.dailymaverick.co.za/article/2025-07-07-uks-reeves-announces-national-wealth-fund-investment-in-carbon-capture/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/ – UK Finance Minister Rachel Reeves announced a £28.6 million investment from the National Wealth Fund in a carbon capture project aimed at reducing industrial emissions and creating jobs in central and northern England. The project focuses on building a carbon capture pipeline for cement and lime industries in the Peak District, storing emissions under the Irish Sea. This initiative is part of the UK’s broader efforts to achieve net-zero emissions by 2050, with a commitment of up to £21.7 billion over 25 years for carbon capture and storage developments. Reeves highlighted that the National Wealth Fund is injecting £3 billion into the British economy, generating 12,500 jobs and modernizing critical industrial sectors. The announcement underscores the Labour government’s commitment to economic growth and climate action. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/?utm_source=openai))
- https://www.reuters.com/world/uk/uk-sets-out-national-wealth-fund-plan-attract-private-capital-2024-10-14/ – UK Finance Minister Rachel Reeves announced the creation of a National Wealth Fund (NWF) aimed at catalyzing billions of pounds in investment into vital growth sectors such as gigafactories, green hydrogen, and carbon capture. With a goal to deploy up to £27.8 billion ($36.2 billion) of capital, the NWF will work in partnership with industry players and mayors, based on the model of the UK Infrastructure Bank. The fund will utilize “blended finance solutions” to engage private capital and enable government departments to undertake additional risk. Furthermore, Reeves highlighted a new initiative to boost pension fund investments in UK companies, targeting a ratio of three pounds of private investment for every pound of public funding. The initiative, encouraging pension funds to invest alongside the British Business Bank, aims to stimulate economic growth and create employment opportunities across the nation. The announcements concluded Britain’s International Investment Summit, emphasizing the government’s commitment to fostering wealth creation through a supportive tax system. ([reuters.com](https://www.reuters.com/world/uk/uk-sets-out-national-wealth-fund-plan-attract-private-capital-2024-10-14/?utm_source=openai))
- https://www.gov.uk/government/news/chancellors-national-wealth-fund-to-deliver-growth-and-boost-security – The UK Chancellor has outlined a new strategy for the National Wealth Fund (NWF) to unlock over £70 billion in private investment, aiming to deliver economic growth, establish Britain as a clean energy superpower, and strengthen the defence sector. The NWF will focus on priority sectors including clean energy, advanced manufacturing, digital technologies, and transport, with investments in projects such as carbon capture, green hydrogen, gigafactories, green steel, and ports. The economic capital limit for the NWF has been increased from £4.5 billion to £7 billion, allowing it to take on greater risk and support projects that struggle to access private finance. The Chancellor emphasized the importance of kickstarting economic growth through the Plan for Change to make Great Britain a stronger, more resilient country and put more money into the pockets of working people. ([gov.uk](https://www.gov.uk/government/news/chancellors-national-wealth-fund-to-deliver-growth-and-boost-security?utm_source=openai))
- https://www.gov.uk/government/collections/uk-carbon-capture-usage-and-storage-ccus – The UK government has made significant progress in advancing its Carbon Capture, Usage, and Storage (CCUS) initiatives, marked by several key milestones. The Track-1 clusters (East Coast Cluster and HyNet) were selected for initial deployment. The government published its CCUS Vision in December 2023, outlining the pathway for the sector’s development and innovation up to the mid-2030s and beyond. On 4 October 2024, the government committed £21.7 billion over 25 years to support the CCUS clusters in the North West and North East of England. In December 2024, the government announced the first two projects in the East Coast Cluster had reached Financial Close, with construction set to begin from mid-2025 and operations from 2028. In April 2025, the government announced that the Transport and Storage Network for HyNet reached Financial Close, meaning both government-backed carbon capture projects have reached final investment decisions. The government is committed to building a strong and sustainable UK CCUS supply chain, with the potential to generate £4-5 billion GVA per year and support 50,000 jobs in the 2030s as the sector matures. The UK aims to be a leading player in CCUS deployment, with opportunities for UK supply chains to develop new capabilities and secure a substantial global market share for CCUS technologies. ([gov.uk](https://www.gov.uk/government/collections/uk-carbon-capture-usage-and-storage-ccus?utm_source=openai))
- https://www.ccsassociation.org/all-news/ccsa-news/ccsa-statement-national-wealth-fund-confirms-investment-in-carbon-capture-projects/ – The Carbon Capture and Storage Association (CCSA) welcomed the National Wealth Fund’s commitment to investing in carbon capture projects, as outlined in the Government’s Statement of Strategic Priorities. CCSA CEO Olivia Powis emphasized that carbon capture, usage, and storage (CCUS) is a vital aspect of the Government’s Plan for Change and will play a central role in enabling Clean Power by 2030, 81% emissions reductions by 2035, and net zero by 2050. She highlighted that the sector could generate over 50,000 jobs, attract £26 billion in private investment, and contribute £94 billion in Gross Value Added (GVA) by 2050. Powis stressed the importance of maintaining the pace of deployment to ensure capture plants are operational as soon as possible. ([ccsassociation.org](https://www.ccsassociation.org/all-news/ccsa-news/ccsa-statement-national-wealth-fund-confirms-investment-in-carbon-capture-projects/?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is current, with the earliest known publication date being July 6, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not appeared more than 7 days earlier. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/?utm_source=openai))
Quotes check
Score:
10
Notes:
The direct quotes from Chancellor Rachel Reeves and CCSA CEO Olivia Powis are unique to this report, with no earlier matches found. This suggests potentially original or exclusive content. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/?utm_source=openai), [ccsassociation.org](https://www.ccsassociation.org/all-news/ccsa-news/ccsa-statement-national-wealth-fund-confirms-investment-in-carbon-capture-projects/?utm_source=openai))
Source reliability
Score:
8
Notes:
The narrative originates from a reputable organisation, Reuters, which strengthens its credibility. However, the report also references a press release from the UK government, which is generally reliable but may present information in a more favourable light. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/?utm_source=openai), [gov.uk](https://www.gov.uk/government/news/chancellors-national-wealth-fund-to-deliver-growth-and-boost-security?utm_source=openai))
Plausability check
Score:
9
Notes:
The claims about the National Wealth Fund’s investment in carbon capture align with previous government announcements and the UK’s climate goals. The reported figures and plans are consistent with known information. The language and tone are appropriate for the topic and region. No excessive or off-topic details are present. The tone is formal and consistent with official communications. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/uks-reeves-announces-national-wealth-fund-investment-carbon-capture-2025-07-06/?utm_source=openai), [gov.uk](https://www.gov.uk/government/news/chancellors-national-wealth-fund-to-deliver-growth-and-boost-security?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is current and based on reputable sources, with no significant discrepancies or signs of disinformation. The content is plausible and consistent with known information, and the quotes appear to be original. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not appeared more than 7 days earlier. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.
