Purpose

 

1.    The purpose of this paper is to provide written evidence for the Economy, Infrastructure and Skills Committee’s general scrutiny session with the Minister for Economy and Transport on 9 May 2019. Information on the areas requested is provided below.

 

Foundational Economy

 

2.    The services and products within the foundational economy provide those basic goods and services on which every citizen relies and which keep us safe, sound and civilized. Care and health services, food, housing, energy, construction, tourism and retailers on the high street are all examples of the foundational economy. The industries and firms that are there because people are there. These aren’t small parts of the economy. Estimates suggest they account for four in ten jobs and £1 in every three that we spend. In some parts of Wales this basic ‘foundational economy’ is the economy.

 

3.    The Economic Action Plan (EAP) has set the direction for a broader and more balanced approach to economic development with a shift towards a focus on place and making communities stronger and more resilient. The EAP places a greater emphasis on tackling inequality and signals a shift to a ‘something for something’ relationship with business.

 

4.    Promoting inclusive growth through a new focus on the foundational economy sits alongside the other three pillars of encouraging and promoting responsible business behaviours and employment practices through our Economic Contract;  supporting business investment that future-proofs the economy through five mission based Calls to Action; and a regional approach to investing in the skills people need to enter, remain and progress in work and the infrastructure communities need to be connected and vibrant. 

 

5.    The foundational economy has seen growing political, policy and academic interest. There is a recognition of the merit of nurturing and growing the everyday parts of the economy. These parts of the economy are critical to wellbeing and as many of these goods and services are local and rarely bought or sold outside of the UK, they are more resilient to external economic shocks. The foundational economy approach offers the chance to reverse the deterioration of employment conditions, reduce the leakage of money from communities and address the environmental cost of extended supply chains.

 

6.    With shifts in portfolio responsibilities we can now drive a greater synergy between the Valleys Taskforce, Better Jobs Closer to Home programmes and maximising the social value of procurement with what may be described as mainstream Government economic interventions. These programmes have a particular contribution to taking forward aspirations for the foundational economy. For example, the Valleys Taskforce offers the structures and partnerships through which the foundational economy can have a specific place based focus; helping to shape the testing and roll-out of the approach. The Better Jobs Closer to Home can provide the support to communities to take advantage of the economic opportunities which exist in the foundational economy.  

 

7.    To retain focus, this broader approach to the foundational economy will coalesce Government action around the following areas:

 

·         A Foundational Economy Challenge Fund: There is no exact template which can be can lifted directly to fit Welsh communities, but there are undoubtedly lessons to be learned from others and from Welsh based experiments. The Fund of £1.5 million will trial different approaches across Wales, leading to a strong community of practice to help raise the profile of the foundational economy and to stimulate debate and learning on what works.

 

·         Spreading and scaling best practice: Mainstreaming the lessons of the experiments, and other successful approaches to local wealth building, is critical to building the Foundational Economy. We will start by, re-establishing Wales at the forefront of realising social value in procurement by nurturing strong local supply chains through the work of the Public Service Boards. The structures created through the Wellbeing of Future Generations Act, provide an unparalleled opportunity to make rapid and significant progress. We will work with them to embed the good practice achieved by the Welsh Can Do Toolkit for social housing, the work on local procurement in Preston, and the pilots in community wealth building through procurement.

 

·         Growing the ‘missing middle’: Renewed focus on Government’s economic interventions to increase the number of grounded firms, particularly a firm base of medium sized Welsh firms but including micro firms, co-ops and community interest companies, which are capable of selling outside Wales but have decision making rooted in our communities.

 

 

8.    We now intend to work across government to develop an integrated enabling plan for the foundational economy sectors identified in the EAP food, tourism, retail, care - in this refreshed context, coalescing government action around common opportunities and challenges.

 

9.     A Ministerial Advisory Board Task and Finish Group on the Foundational Economy has been established to provide advice to Welsh Ministers on current and future interventions and best practice; support wider engagement with stakeholders in the foundational economy; and promote join-up of relevant Government and non-governmental initiatives. The group is comprised of individuals with considerable knowledge, expertise and experience in this area.

 

10. The foundational economy is the backbone of communities in Wales.  It is very early days in implementing this coordinated focus through an economic lens on the products, services and workforce which make up the basic needs of citizens. The approach the Welsh Government has adopted is experimental and not without risk. However, it offers the potential to inform what works and to scale up good practice. There are intractable economic issues in many parts of Wales where adding a focus on the foundational economy alongside what could be referred to as traditional economic development approach as set out here has the potential to make people’s lives better.

 

Issues arising from the Public Transport White Paper

 

Engagement Methods

 

11.The White Paper ‘Improving public transport’ was published for consultation between 10 December 2018 and 27 March 2019.  The White Paper sets out the proposals for improving the legislative framework in relation to how local bus services are planned and delivered, together with reform of the licensing regime for taxis and private hire vehicles.

 

12.In excess of 200 written responses were received from local authorities, bus operators, taxi operators, passenger groups, businesses and members of the public.  In addition to these responses around 300 responses were received from the Cardiff Hackney Association in the form of a standard campaign response. 

 

13.In addition to the written consultation, four engagement events were held at Conwy, Cardiff, Swansea and Llandrindod Wells, with a total of around 200 in attendance.  The events took the form of presentations by officials, followed by facilitated round-table discussions and an opportunity for attendees to provide comments on flip charts with a feedback session.

 

14.Specific engagement meetings have also taken place with a broad range of organisations such as local authority taxi licensing group, bus operators, taxi and private hire vehicle representatives, passenger groups and groups representing protected characteristics including Disability Wales, Guide Dogs Cymru and Children in Wales.

 

Analysis of the responses

 

15.38 questions were asked, based on the Welsh Government’s proposals for legislation. Officials are currently undertaking a detailed analysis of the responses and a summary report of the responses will be published in due course.

 

16.At this stage in the process, it is possible to give the Committee a high level overview of the main themes arising from the consultation engagement events and an early consideration of the written responses.

 

Bus Services

 

General comments

 

17.There was a general support amongst stakeholders for the proposals set out in the White Paper.  In particular, for the proposals which provide local authorities more options and flexibility when considering the provision of bus services in their area.

 

Joint Transport Authorities

 

18.One of the proposals that attracted much discussion at the consultation events was the establishment of Joint Transport Authorities (JTAs).

19.There is wide spread support for the proposal for local authorities to work together to deliver local bus services. Generally, stakeholders have supported the proposals to establish JTAs.  There does not appear to be a clear preference between the two options for possible structures of the JTAs.  Instead, there are sectoral differences emerging - local authorities favour a national JTA to undertake national/strategic functions and regional JTAs to discharge regional/delivery functions. Members of the public and passenger groups appear to favour establishing a single JTA with regional delivery boards.

 

20.Stakeholders have raised queries in relation to how the proposals for JTAs would sit alongside the ‘footprint’ of other administrative areas such as local authorities and health boards.  In addition, responses sought clarity on the role of Transport for Wales in the context of establishing JTAs.

 

21.Arguments are presented for and against the Welsh Ministers being represented on a JTA.  Arguments for include the need for Welsh Ministers to set strategic direction and for there to be a strong partnership between the Welsh Government and local government.  Arguments against relate to the potential conflict of interest.

 

22.Stakeholders largely consider that in principle the Welsh Minister should have powers to issue guidance and direction and to intervene when a JTA is considered to be failing. However, many have sought clarity in relation to the circumstances that Ministers could intervene.

 

23.A number of the comments received were seeking further detail in relation to the proposals.  In particular, local government is calling for the dialogue to continue as they would welcome the opportunity to co-design the proposals and be involved in making decisions regarding the possible delivery mechanisms.  A commitment to engage throughout the development of the JTA proposal has already been given to local government.

 

Mandatory Concessionary Fares

 

24.The proposals to align entitlement to a mandatory concessionary fares pass with a woman’s state pensionable age also attracted a large number of responses, and views on the proposals were mixed. 

 

25.Older people consulted with wished to convey how important the concessionary pass is to them, and how much they value the scheme. They highlighted its importance in terms of health and well-being and social contact, enabling older people to keep in touch with the local community which can help to overcome loneliness and isolation.

 

26.Others highlighted that increasing the age of entitlement is likely to result in a decrease in bus patronage and therefore a corresponding increase in the number of car journeys which would be contrary to the stated aims of the legislation.

 

27.Others recognised the cost implications associated with the concessionary passes and consider that increasing the entitlement so it is aligned with a woman’s state pensionable age was a fair method.

 

28.There was strong support for an incremental change.

 

Taxi Proposals

 

General comments

 

29.Many of the comments raised from taxi and private hire vehicle drivers have raised concerns that the proposals in the White Paper do not go far enough to address the issues they face.

 

30.In particular, concerns have been raised that the proposals do not seek to address cross-border working where by taxi drivers are registered in one authority but work in several neighbouring authorities.  Suggestions have been received that there is a need to regulate this activity including making clear that drivers can only take on fares in the authority in which they are registered.

 

31.Concerns have also been raised that the proposals in the White Paper in relation to the licensing and enforcement do not recognise the differences between taxis and private hire vehicles.  The taxi industry considers that many of the proposals in the White Paper could have a disproportionate negative impact for taxi drivers.

 

32.Notwithstanding the comments relating to matters not covered in the White Paper, there is general support for the proposals that are contained in the White Paper.

 

Williams Rail Review

 

33.Our railway should be one of our most socially and economically valuable assets. It has the potential to make a significant contribution in Wales to people’s lives, our communities, the environment, and to our economy. Our rail infrastructure and rail services are fundamental to an effective and efficient transport network. Their continued development and expansion will contribute to our ambition to develop a stronger, inclusive and more equitable economy and to deliver prosperity for all by connecting people, communities and businesses to jobs, services and markets.

 

34.However, the context for rail delivery in Wales is complex, fragmented and under-funded. The current railway settlement was designed before the advent of devolution and, although some efforts have been made to evolve it, the current settlement is still a reflection of the times in which it was created.  20 years on from devolution, the Secretary of State for Transport in Westminster retains ultimate control of railway infrastructure in Wales.

 

35.This imperfect devolution settlement is the root of many of the problems with our railway. It undermines our ability to encourage inclusive economic growth, to deliver balanced investment across regions, and to develop a railway that meets the social needs of our rural communities. We are approaching a critical juncture in the evolution of the railways in Great Britain, and in particular the opportunity to develop an integrated network that better meets the needs of the people that use it. To achieve our ambitions we need greater control and autonomy of the railway in Wales to manage and develop our infrastructure and services.

 

36.On 20 September 2018, the Secretary of State for Transport announced a root and branch review of Britain’s railways to be led by Keith Williams and the UK Government intends to publish a White Paper on the review’s recommendations before the end of 2019.

 

37.Our expectation is for the Williams Review to set out a clear path for Wales to have a greater say in specifying rail services, to manage and develop infrastructure with a fair funding settlement, and to establish a regulatory framework which recognises the diversity of UK devolution, whilst maintaining a national railway which benefits all parts of Britain. 

 

38.Specifically, on 5 February 2019 the National Assembly for Wales voted[1] to call on the Williams Rail Review to result in:

·         Transfer of ownership of Wales’ rail infrastructure to Welsh Ministers following a comprehensive assessment of its condition alongside the provision of a fair funding settlement, extending to enhancements, as is the case for Scotland;

 

·         The ability to select from a range of railway passenger service delivery models in Wales, including more integrated management of track and train, and the removal of the prohibition on public sector operators bidding for, and operating railway passenger services, in relation to Welsh franchise agreements;

 

·         Devolution of power for the Welsh Ministers to specify or operate cross-border services following approval to do so through industry processes without the approval of the Secretary of State;

 

·         Accountability to the Welsh Government for all organisations responsible for delivering passenger services and rail infrastructure in Wales;

 

·         The Welsh Government having a full role in planning and decision making in respect of the infrastructure used by Welsh (cross-border) services, arrangements for owning, allocating and managing rolling stock which serves Wales’ needs and a formal input in the Office of Rail and Road’s regulatory activities

 

A Railway for Wales | Meeting the Needs of Future Generations

 

39.An efficient railway, as part of a wider multi-modal integrated transport network is uniquely suited for delivering our objectives and to meeting the needs of future generations. Our development of the south  Wales Metro, plans for a north east Wales Metro and a Swansea Bay Metro will provide a greater and more viable alternative to the car for commuter trips helping to generate inclusive growth, protect the environment, and support our towns and cities. Equally important to the Welsh Government is the role that the railway plays in supporting our rural communities, delivering vital connectivity to employment and services, while enhancing accessibility to our world class tourist destinations. Also, transporting freight by rail could make an increased contribution to our decarbonisation objectives and can be a key part of day to day business.

 

40.With the full and proper devolution of infrastructure and services aligned to a fair funding settlement we will be able to begin to develop a railway in Wales that meets our own needs and objectives for the economy, our responsibilities to the environment, and our obligations under the Well-being of Future Generations (Wales) Act 2015:

 

·         A prosperous Wales - Wales needs a rail network that allows people and goods to move efficiently, promoting business and the generating employment opportunities to boost productivity and economic growth.

 

·         A resilient Wales - Wales needs a reliable and efficient railway that offers resilience to current weather patterns and future climate changes through a well-maintained, modern network that minimises whole life costs.

 

·         A healthier Wales - Wales needs a railway that improves physical and mental health by promoting active travel opportunities and reducing loneliness and isolation through facilitating efficient and attractive door-to-door journeys.

 

·         A more equal Wales - Wales needs a railway that is accessible to all. A railway that enables efficient and affordable journeys as an integrated piece of the wider transport network through an equitable investment programme that meets national objectives, regional requirements, and local priorities.

 

·         A Wales of cohesive communities - Wales needs a railway that supports the communities it serves and an effective foundation economy through expanding access to rail services, allowing efficient journeys between all regions of Wales.

 

·         A Wales of vibrant culture and thriving Welsh language - Wales needs a railway that facilitates access to leisure, tourism and heritage sites and actively promotes the Welsh language and culture.

 

·         A globally responsible Wales - Wales needs a railway that encourages and helps people to use more sustainable forms of transport as part of a wider integrated public transport system, minimises its own energy requirements, and the environmental impacts of energy use.

 

41.Our award of the new Wales and Borders rail services contract will see a number of our ambitions for rail services delivered over the next five years. The new contract will deliver new and additional rolling stock, additional services, and new and improved stations.

 

42.However, we are also aware that this is only the beginning of a journey. Many areas in Wales either continue to suffer from infrequent services, unreliable infrastructure, and indirect routes - or have inconvenient access or no access whatsoever - to rail journeys. With the right powers and necessary funding, we could be doing much more: more services to improve access to jobs and leisure activities, more attractive journey times to encourage people away from private cars, and more stations to connect our communities.

 

43.Therefore, to comprehensively deliver on our immediate and future ambitions to continue to support our economy and communities, we need to develop an integrated transport network that allows more of us to travel where we want to, when we want to, and to do so more sustainably. 

 

44.Despite not being funded to do so, the Welsh Government has chosen to invest more on enhancing rail infrastructure in Wales than the UK Government – choosing to connect communities through re-opening lines and new stations, prioritising increasing capacity to provide viable and popular services, and closing level crossings to improve safety and journey times and offer realistic alternatives to private car travel. The fact that the UK Government did not make these investment choices demonstrates that their priorities are elsewhere. Inarguably, without a fair funding settlement from the UK Government, this investment by the Welsh Government can only currently come at the expense of the funding that we receive to pay for improvements to the wider transport network, local services, and new schools and hospitals.

 

45.While a programme of enhancements worth over £150 billion is being funded for development and delivery across the border, we continue to wait for a similarly ambitious commitment from the UK Government to fund and deliver our strategic vision for the rail network in Wales outlined in The Case for Investment[2], undertaken by Professor Mark Barry. From this work it is clear that there is the potential to deliver comparable benefits from an ambitious, realistic, and equitable investment programme in Wales’ rail infrastructure.

 

46.A fair devolution settlement for Wales would allow us over the next 10 years to fund schemes such as the re-opening of railway lines, electrification of the south and north Wales mainlines, and new routes and stations across the network. Our first task is to address the legacy of a historic lack of investment in developing and improving the railways in Wales through an ambitious infrastructure and service enhancement programme

 

47.With the establishment of Transport for Wales, and the imminent transfer of the Core Valleys Lines (which already carry over half of existing Wales and Borders services) to the Welsh Government, we not only have the ambition in Wales, but also the capability to deliver these objectives, and to meet the needs of our communities and our economy.

 

Core Valley Lines asset transfer

 

48.The Core Valley Lines (CVL) are a very intensively used part of our railway in Wales. Whilst in size it accounts for 15 per cent of train miles and 12% of assets by value, the Core Valley Lines carry around 56 per cent of all Wales and Borders passenger services every day. The transfer of the CVL from Network Rail to Transport for Wales (TfW) is planned for 20th September 2019.

 

49.The CVL transfer will facilitate creating a vertically integrated operator and infrastructure manager through the appointed Operator and Development Partner (ODP), which in turn will enable the efficient and effective delivery of the CVL Transformation. This investment will enable more frequent services over the CVL and support the economic growth and social wellbeing of this important area of South Wales.

 

50.The transfer of the CVL from Network Rail to TfW will be achieved through a statutory transfer enabled through the granting of a Transport and Works Act Order (TWAO). In parallel, negotiations are progressing with Network Rail to conclude the various agreements required to transfer the CVL (i.e. Bridge Agreements; Connection Agreements, etc.) and the ODP and TfW are engaging with the Office of Rail and Road (ORR) to secure relevant safety and regulatory licences to enable the ODP to perform its infrastructure manager role.

 

51.Discussions are ongoing between the Welsh Government, the Department for Transport (DfT) and HM Treasury regarding the funding arrangements necessary for the transfer and the ongoing operations, maintenance and renewals requirements.  A suitable financial settlement for operation, maintenance and renewal activity is required (commensurate with CVL’s scale and usage) to be transferred along with the asset.

 

52.TfW submitted a first iteration of the business case in early April and a further iteration is planned for early June. ORR, Network Rail and DfT approvals are planned to be secured in June to facilitate a Secretary of State decision in late June. This will enable Welsh Ministers to make a final decision on the CVL transfer in July to enable the transfer to take place in September 2019.

 

Transport for Wales

 

53.The Welsh Government priorities for TfW are set in the context of Taking Wales Forward 2016-2021, Prosperity for All; the national strategy, the Economic Action Plan, and the Well-being of Future Generations (Wales) Act 2015.  Additionally, the First Minister has committed to empowering TfW to deliver a public transport system that aims to give everyone easier access to bus, train and active travel for everyday journeys.

 

54.The 2018/19 financial period represented an important phase in the growth of TfW as it develops momentum in creating a step-change in the way we deliver transport services and infrastructure across Wales.  The remit for the 2019/20 financial period will ensure the Company continues to deliver a core component of the Welsh Government’s programme for government.

 

55.TfW has an important role in driving integration across the entire transport network by putting the passenger at the heart of everything it does.  The Welsh Ministers’ aspiration for TfW is to exploit the opportunity it has as their transport integrator and to allow the Company to take on a wider range of transport functions.

 

56.TfW is committed to openness and transparency.  The Company will continue to make information available on its website and proactively seek opportunities to interact with Local Authorities, Assembly Members, the public and the media.

 

57.The Company will continue to work with the Welsh Government’s new regional teams, Local Authorities, the emerging regional transport authorities and partners to create an integrated public transport network and that these networks will be increasingly directly owned or operated by TfW

 

58.Furthermore, TfW will work with the key partners, such as the Development Bank of Wales and the Design Commission Wales to identify opportunities to collaborate and embed practices in the coming year, particularly where additional value can be optimised.

 

59.Skills are key to economic growth in the Economic Action Plan.  By investing in the development of its current staff and new recruits, as well as offering career paths and opportunities for growth and skills development, TfW is uniquely placed to develop and sustain a professional transport skills base supporting the economy and employment of Wales.  TfW will increasingly bring functions in-house to maximise on this opportunity.

 

60.The Company will embed the Economic Contract framework as a means to deliver public investment with a social purpose and abide by its principles of inclusive growth, fair work, health and skills in the workplace and the management of carbon footprints.  This will include how procurement and contractual agreements would be amended to enable TfW to do this.

 

61.TfW will develop the Transport for Wales brand as a strong customer-focused brand that passengers and stakeholder across Wales recognise and understand its values.

 

62.The Company will publish a Location Strategy by autumn 2019.  The Welsh Government is looking to TfW to make a step-change in its physical presence across the whole of Wales, improving passenger stakeholder awareness of the Transport for Wales brand.

 

Decarbonisation action plan

 

63. The First Minister launched our first Government-wide statutory decarbonisation plan. Prosperity for All – A Low Carbon Wales in March. The Plan sets out one hundred policies and proposals (24 proposals for future action and 76 pieces of policy), across all sectors of our economy, to meet our current carbon budget and set a longer term decarbonisation trajectory for Wales. The policies and proposals are broken down by portfolio which collectively demonstrate the strength of the collective Cabinet commitment to change in the coming years.

 

64. In terms of transport our actions are focused around behaviour change, and to support a shift to more sustainable travel behaviours by increasing active travel and use of public transport. This is supported by recent changes to Planning Policy Wales and our investment in the railway and Metros and active travel.

 

65. Our policies are also designed to increase the uptake of electric vehicles, a bold ambition for zero emission bus and taxi/private hire fleet by 2028, and the improvement in vehicle and fuel efficiency measures.

 

66. Adoption rates of electric vehicles will be highly reliant on international efforts to drive change in the motor manufacturing sector, and incentives provided by the UK government for purchasing electric vehicles and charging infrastructure. The Minister for Economy and Transport’s attendance at the Committee’s evidence session on Electric Vehicle Charging in Wales on 15 May 2019 will be an opportunity to further discuss the requirement for charging infrastructure in depth.  

 

67. We have also been discussing proposed programmes and projects to support low carbon transport within the North Wales Growth Deals with the North Wales Economic Ambition Board.

 

68. We are exploring the scope to expand bike share schemes, pilot activity to promote the use of zero and ultra low emission road vehicles, and work to support the decarbonisation of private sector fleets.

 

69. Welsh Government officials have worked with a number of local authorities to develop bids which were successful in obtaining funding from the UK Ultra-Low Emission Bus Scheme, aimed at supporting the introduction of electric vehicles. Three bids within Wales were successful.

 

·         Cardiff City Council with £5.6m;

·         Stagecoach South Wales - £2.8m and

·         Newport Transport - £0.99m.

 

70. With our new Active Travel Fund, we are investing more than ever in creating safe and convenient active travel infrastructure in towns and cities across Wales to enable walking and cycling to become the modes of choice for shorter journeys and for longer journeys when combined with public transport.

 

Carbon Intensive Industries

 

71.As identified in Prosperity for All – A Low Carbon Wales, it is of fundamental importance that we ensure industry can play its full part in the move to a low carbon economy. The UK Committee on Climate Change (UKCCC) recognises that Wales has a higher share of emissions from hard to reduce sectors, including industry, than the rest of the UK and pathways to very low emissions by 2050 have yet to be identified.

 

72.The UKCCC considers emissions from industry will decrease marginally into the mid-2030s through incremental improvements to energy efficiency, switching to bioenergy and electrification of heat. Longer term, innovation will be essential in order to achieve significant levels of carbon emission reductions from industrial processes.

 

73.We recognise that in dealing with the considerable challenges to decarbonise industrial processes in both the short to medium term, and to 2050, there needs to be collaboration between industry and government. We will establish an industry-led working group to consider these challenges. The terms of reference of the group is to be determined but we envisage this will:

 

·         focus on direct emissions from industrial processes at high carbon emitting industrial operations on a pan-Wales basis

·         consider how products manufactured in Wales contribute to a circular economy and clean growth.

·         consider how policies and processes in other areas including energy, transport and waste might indirectly contribute to industrial emission reductions.

 

74.The membership of the Group will reflect these challenges. We also recognise that many of the levers associated with industrial decarbonisation reside with the UK Government and we will consider how we can best engage at a UK level to maximise the benefits for Wales. The group will not consider decarbonisation issues across all the economy and businesses in Wales. However, it will take into consideration how policies and processes in other areas including energy, transport and waste might indirectly contribute to industrial emission reductions.

 

75.Through the Economic Action Plan (EAP), the move to a regional approach will enable Welsh Government to work with industry and business to consider how to reduce carbon emissions in particular areas, focusing on the particular opportunities, challenges, skills development and innovation opportunities to meet the challenges. This will also provide a mechanism to further develop our engagement with industry around the challenges of decarbonisation post 2030 towards 2050 which will require more fundamental actions. We fully recognise the significant role that innovation will play in meeting those longer-term challenges.

 

76.We will also engage with international partners on the challenges of decarbonising highly industrialised regions to support future industry growth and productivity.

 

77.The UKCCC considers that Carbon Capture Use and Storage (CCUS) could significantly reduce Welsh emissions by 2050 but its deployment in its Welsh scenarios will not commence until the late 2030s, towards the end of the window of UK deployment. This reflects the greater practical difficulty and cost in the Welsh context relative to other parts of the UK, particularly in South Wales which is without close access to off shore storage.

 

78.We recognise there is a need to develop our understanding of the potential for CCUS in Wales, building on the work that the UK Government has undertaken through its industry-led CCUS Council. There are different challenges and opportunities also for CCUS in the North and South of Wales. We will work with industry to better understand what a Welsh Government funded study should most constructively focus on.



[1] http://record.assembly.wales/Plenary/5423#C163946

[2] https://gov.wales/sites/default/files/publications/2018-12/the-rail-network-in-wales-case-for-investment.pdf