Ah, no, not quite:

The measure that could have saved 23.4 million tons
of carbon a year by 2020 would have been the go-ahead for BP’s
world-class carbon capture demonstration project at Peterhead.

But
by setting up a competition to decide the best carbon capture project,
Gordon has cleverly passed the controversial decision whether to fund a
private company that made a £20 billion profit last year on to his
successor.

BP isn’t actually asking for funding at all. What they’re asking for is a special tax rate. They want to use the CO2 to pump down into the oil reservoir. That will bring up more oil from the field: if they don’t pump the CO2 down, the oil never comes up. So they’re asking if they can pay less tax per barrel of this last oil, to cover the costs of pumping the CO2 down.

The actual fiscal decision being faced by the Chancellor is whether to have no oil taxes, as the oil stays in the ground, or some, by offering the lower tax rate.

Put that way it seems a little simpler, doesn’t it?