In a joint letter to Chancellor of the Exchequer, Rachel Reeves, signatories including CBI, Prosper, the Institute of Directors, Scottish Financial Enterprise and Scottish Chambers of Commerce have warned that failing to act now threatens thousands of jobs, billions of pounds of investment, and economic growth.

Acorn CCS is central to Scotland’s ability to cut industrial emissions, providing the country’s only viable CO2 transport and storage solution.

Without it, key industries – including energy, chemicals, and manufacturing – face mounting costs, a loss of competitiveness, and a major risk of job losses.

The letter references the Climate Change Committee’s latest Carbon Budget, which highlights the urgent need for CCS deployment to meet the UK’s 2050 net-zero targets.

According to the report, the Scottish Cluster, anchored by Acorn, could store between 10 and 22 mega tonnes of CO2 annually by 2050.

Sir Ian Wood, chairman of ETZ Ltd, warned that further delays to Acorn CCS could have serious economic consequences for Scotland. He said: “Acorn CCS is a crucial catalyst needed to protect skilled jobs and unlock billions of pounds in investment.

“The UK government must act now to develop this transformational opportunity that will support industrial decarbonisation across the UK as well as much needed economic growth.”

Economic research estimates that accelerating Acorn will add £17.7 billion to UK GDP by 2050, create over 10,800 jobs during construction, and sustain 4,700 long-term operational roles.

A fast-tracked decision would also enable early carbon capture at Peterhead Power Station, a 900MW gas-fired plant critical to UK energy security.

Peterhead’s ability to provide flexible, dispatchable power is a key element of the government’s Energy Security Strategy and Clean Power 2030 Action Plan.

Additionally, Acorn CCS is vital for Grangemouth, Scotland’s largest industrial emitter, where rising carbon costs could put thousands of jobs at risk.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, stressed the urgency of government action.

She said: “Scotland cannot afford further delays on Acorn CCS. The government has pledged a just transition for our workforce, but those promises must now be matched with decisive investment.

“This is a pivotal moment for Scotland’s economy, and we need clear signals that Westminster is serious about delivering a net-zero future that includes industrial communities like ours.”

Despite the UK’s climate ambitions, Acorn CCS has faced nearly two decades of setbacks. The letter urges the government to act decisively and ensure Scotland is not left behind in the country’s industrial decarbonisation plans.

The full list of signatories is:

• Sir Ian Wood KT GBE, chairman, ETZ Ltd
• Dr Liz Cameron CBE, CEO, Scottish Chambers of Commerce
• Myrtle Dawes, CEO, Net Zero Technology Centre
• Michelle Ferguson, director, CBI Scotland
• Maggie McGinlay, CEO, ETZ Ltd
• Sara Thiam, CEO, Prosper
• Jennifer Craw MBE, CEO, Opportunity North East
• Sandy Begbie CBE, CEO, Scottish Financial Enterprise
• Russell Borthwick, CEO, Aberdeen & Grampian Chamber of Commerce
• Catherine McWilliam, director, Institute of Directors Scotland