UK's Reeves announces National Wealth Fund investment in carbon capture

British finance minister Rachel Reeves will announce on Monday a 28.6 million pound ($39 million) investment by the National Wealth Fund in a carbon capture project that could create jobs in central and northern England.

Last year, Britain said it would provide funding of up to 21.7 billion pounds over 25 years to develop carbon capture and storage projects to curb emissions from industry and create new jobs.

Britain has a climate target to reach net zero emissions by 2050 and has said CCS will be needed to curb emissions from energy-intensive industrial sectors.

On Monday, Reeves will hail the funding as the first step towards the development of a carbon capture pipeline between cement and lime companies in Britain's Peak District, which will store emissions below the Irish Sea, according to a statement from her ministry.

"The National Wealth Fund is a force for growth, investing 3 billion pounds into the British economy and securing 12,500 jobs," Reeves said in a statement.

"We're modernising the cement and lime industry, delivering vital carbon capture infrastructure and creating jobs across Derbyshire, Staffordshire and the North West to put more money into working people's pockets."

Reeves and the rest of Prime Minister Keir Starmer's cabinet are keen to show what the Labour government is doing to change Britain by announcing new projects after being forced into a series of embarrassing U-turns and a major rebellion from within the party over welfare reforms. Those have raised questions about the government' ability to cut spending and about party control.

($1 = 0.7325 pounds)