Canada's oil industry wants 'even footing' with Americans on carbon capture

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Finance Minister Chrystia Freeland has said Ottawa needs to 'respond to' certain 'elements' of the climate spending-heavy Inflation Reduction Act From jefflagerquist

, a conditional $24.1 billion investment on a carbon capture and storage facility and pipeline in northern Alberta, along with other emissions reduction projects. The first phase calls for an investment of $16.5 billion by 2030.Americans have taken the lead on the energy transition from Canada in one fell swoop.However, the Pathways Alliance has not made a final investment decision on the project.

Kevin Krausert is a Calgary-based former oil field services executive who now runs a clean energy venture capital firm and startup accelerator called Avatar Innovations. He's critical of Canada's lack of carrots and many sticks when it comes to climate policy for the industry. As a starting point, he wants the federal tax credit for carbon capture expanded to cover operating and other costs.

Cameron points to the IRA's enhancement of Section 45Q of the Internal Revenue Code, which incentivizes the use of carbon capture and storage. The legislation increases the value of the credits across the board, while broadening access to more investors and developers.

 

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