These regulations establish a mandatory funding system for companies operating offshore carbon dioxide transport and storage infrastructure in the UK. They require licence holders to create and maintain independent decommissioning funds, regularly estimate future decommissioning costs, make ongoing contributions, and obtain government approval for how the funds are managed and used. The funds are intended to ensure that sufficient money is available to safely decommission carbon storage sites, pipelines, and related infrastructure at the end of their operational life, while giving the Secretary of State oversight of funding arrangements, payments, and compliance.
Source: HMSO.