Details on the tax credit for carbon capture, utilization and storage technology are expected later this month when the Trudeau government unveils its plan for how Canada will cut emissions to achieve their net zero targets by 2050. It is expected that details on the tax credit will follow in the federal budget, presumably in early April.
CCUS is the process of capturing and storing carbon dioxide from heavy industries – such as oil and gas, cement, steel and fertilizers – and either storing it underground in depleted reservoirs or repurposing it to make entirely new products. , federal ministers Jonathan Wilkinson and Steven Guilbeault confirmed that the government is proposing “a tax credit to help drive the growth of Canadian CCUS technologies”, while stressing that it “cannot be used for CCUS activities designed to extract more petroleum.