The carbon capture tax credit is a divisive issue; mixed opinions on potential benefits

CALGARY — A new carbon capture and storage tax credit expected to be unveiled in the federal budget next week is sparking public debate. Some environmental organizations are calling on the Trudeau government to scrap its promised tax credit.

CALGARY — A new carbon capture and storage tax credit expected to be unveiled in the federal budget next week is sparking public debate.

Some environmental organizations are calling on the Trudeau government to scrap its promised tax credit. They say funding carbon capture and storage projects is another way to subsidize the oil and gas industry.

But Ottawa says increased use of carbon capture technology is needed if Canada is to have any hope of meeting its net-zero emissions goals.

Carbon capture and storage is a technology that captures greenhouse gas emissions from industrial sources and stores them deep in the ground to prevent them from being released into the atmosphere.

The oil and gas industry has lobbied for a tax credit to help pay for projects like a carbon capture network project in the oil sands producing region of northern Alberta.

According to environmental think tank Pembina Institute, capturing and storing C02 from oil sands facilities, refineries and gasworks could cut Canada’s emissions by 15 million tonnes by 2030.

This report from The Canadian Press was first published on March 30, 2022.

The Canadian Press