Mr Miliband is considering developing a transport infrastructure which would ensure green house gases are stored in suitable locations.
However, it is believed that the cost could end up being passed onto consumers through their electricity bills.
John Sauven, executive director of environmental organisation Greenpeace, told the Guardian: "Mr Miliband should be focused on cutting emissions, not appeasing German energy giants like E.ON who want to build a new coal-fired power station at Kingsnorth without guaranteeing it will capture and store any of its emissions."
Today, the UK government said it would pay for four carbon capture demonstration plants, used to test the new technology before it is rolled out.
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