#2026/632UK rules on funding offshore decommissioning for carbon dioxide transport and storage
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
These regulations set the funding framework for paying the future offshore decommissioning costs of carbon dioxide transport and storage infrastructure. They are aimed at the companies and accountable people involved in building, operating, financing, or closing offshore carbon storage installations and related submarine pipelines. In practice, operators will need approved cost estimates, funding arrangements, and investment strategies for decommissioning obligations. The Secretary of State has approval and oversight powers, which means businesses in the carbon capture and storage chain should plan early for decommissioning funding, reporting, and compliance before projects reach the end of life.
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Key Changes
- Creates a funding framework for offshore decommissioning costs linked to carbon dioxide transport and storage infrastructure
- Requires approved estimates, funding arrangements, and investment strategies for decommissioning obligations
- Gives the Secretary of State oversight and approval powers over key decommissioning funding arrangements
Obligations
What this law requires
Submit any matter requiring Secretary of State approval under these Regulations using an approval request in the specified form set out in Schedule 3.
Ensure offshore decommissioning costs for carbon storage installations or related submarine pipelines are covered by approved funding arrangements before those costs fall due.
Prepare and maintain approved cost estimates for future offshore decommissioning liabilities connected with carbon dioxide transport and storage infrastructure.
Develop a funding and investment strategy that proposes annual contributions to the offshore decommissioning fund and obtain Secretary of State approval for those contributions.
Carry out or arrange for the carrying out of approved decommissioning actions where the person is responsible under an enactment, UK court order, or as a relevant person.