QUESTION PERIOD — Environment and Climate Change
Carbon Sequestration
September 17, 2024
My question is for the Government Representative.
Senator Gold, the government has recognized the need to create regulatory and financial incentive structures for scaling carbon-removal technologies. These include Finance Canada’s Carbon Capture, Utilization, and Storage Investment Tax Credit; Environment and Climate Change Canada’s, or ECCC’s, development of a protocol for direct air capture of carbon dioxide; and Natural Resources Canada’s, or NRCAN’s, responsibility to approve qualifying projects.
Canada has a natural competitive advantage in carbon removal and storage, yet other countries are attracting the bulk of investment. Sophisticated investors who want to scale carbon-removal technologies and organizations wanting to buy the resulting carbon credits are concerned with our slow progress and complex web of protocols and approvals.
Senator Gold, which department or entity will bring clarity to Canada’s efforts and be accountable for our country’s success so we can begin to attract the billions of dollars in global investment that are already going to the U.S. and Europe?
I refer all senators to Natural Resources Canada and its release of Canada’s Carbon Management Strategy. This strategy outlines five priorities guiding the government’s approach to promoting a competitive and robust carbon-management sector here in Canada. I would note that attracting investment and trade opportunities is one of those five priorities. The strategy also includes the enabling federal programs, policies and regulations.
How many projects have been approved so far under the ITC for carbon capture utilization and storage by this government? If the answer is zero, what would be the best way to advance and accelerate progress?
The answer is not zero. In fact, I understand there are over 90 current and proposed projects under the investment tax credit for carbon capture, utilization and storage.
