US Congress may expand tax credits for carbon capture and sequestration projects. the goal is to help increase the use of green technology. However, some environmentalists are concerned that doing so will not stop industries from reducing their carbon emissions.
The proposal is currently listed within the Biden administration’s $1.75 trillion package. For every metric ton of carbon captured and stored, an $85 credit would be provided. Right now, industries are only offered $50 per credit.
President Joe Biden has said that his goal is to decarbonize the US by 2050. Carbon capture sequestration (CCS) is a way that the US can accomplish that. The process involves capturing carbon that is produced, then placing it deep underground so that it isn’t released into the air.
Right now, several CCS facilities in the US are no longer in service. According to the Global CCS Institute, only a dozen or so are operational.
Though many groups see the value of carbon capture and storage, some environmentalists aren’t so sure. They feel that the proposal, which requires 50%-75% of carbon to be captured, is far too low.
The Clean Air Task Force feels the credit hike would be beneficial since it can increase carbon capture 13 times over throughout the 2030s. According to CATF spokeswoman Lee Beck, “These provisions will not only enable decarbonization of domestic industries but can also multiply emissions reductions abroad.”
COP26 is taking place right now.
As leaders work to combat climate change, increased incentives for carbon capture and sequestration could serve as part of the solution. The voluntary carbon marketplace also has a role to play, as companies use credits to offset emissions.
Combine carbon capture and sequestration, offsetting, increased regulation, and advances in technology, and net-zero goals are within reach.