The energy secretary, Ed Miliband, has announced that four new carbon capture and storage trials would eventually add 2pc to energy bills through a levy on electricity suppliers. While there are no official estimates of the costs of the projects, the Government hopes that CCS will create new jobs and revive the British coal industry. Most environmental groups remain opposed to CCS.
Ian Parrett, an analyst at Inenco, said capturing carbon "had to be done" and could help lead a revival of the British coal industry.
"But we have concerns that no one knows whether carbon capture is commercially viable," he said. "And the Government isn't putting any money in at all. If all emissions reduction schemes add 2pc to bills, we are talking about electricity costs being hugely higher."
The Government is also forming a contingency plan for reducing emissions from coal-powered plants, since the technology behind transporting and burying carbon is not yet proven.
Simon Hughes, the Liberal Democrat shadow energy secretary, described the plans to build more coal power stations before it is known whether the technology works as "a huge gamble".
