EXCLUSIVE: New Carbon Capture Tax Credit Would Drive Higher Emissions, Could Mislead Investors
The fossil industry and its allies have been intensifying their push
for carbon capture (CCUS) subsidies, with Alberta Premier Jason Kenney calling
for C$30 billion in federal largesse over 10 years. In an email
Tuesday, Ian Cameron, press secretary to Natural Resources Minister
Seamus O’Regan, said carbon capture technology “creates jobs, lowers
emissions, and increases our competitiveness. It’s an important part of
our government’s plan to get to net-zero emissions by 2050 and we are
working with all provinces, including Alberta, to keep Canada at the
forefront of this promising technology.”
for carbon capture (CCUS) subsidies, with Alberta Premier Jason Kenney calling
for C$30 billion in federal largesse over 10 years. In an email
Tuesday, Ian Cameron, press secretary to Natural Resources Minister
Seamus O’Regan, said carbon capture technology “creates jobs, lowers
emissions, and increases our competitiveness. It’s an important part of
our government’s plan to get to net-zero emissions by 2050 and we are
working with all provinces, including Alberta, to keep Canada at the
forefront of this promising technology.”
But the signature tax measure that is generating much of the hype, the Section 45Q tax credit
[pdf] named for the relevant section of the U.S. Internal Revenue Code,
creates an incentive for power plant operators to emit more carbon,
while giving investors a false picture of projects’ viability, said
David Schlissel, a Massachusetts-based consultant associated with the
Institute for Energy Economics and Financial Analysis (IEEFA).
