Until 2030, the investment credit rate will be set at 60% for direct air capture technology that draws carbon dioxide out of the air and 50% for other CCUS projects that include oil and gas production and recovery of emissions from hardware.
The tax credit was created to reduce emissions by 15 megatons by 2030, based on the financial modeling of the CCUS project.
The federal government is imposing additional taxes on banks with record pandemic profits, but oil and gas companies are unharmed, despite making significant profits from soaring oil prices.
McDonald’s relies on “doing complex calculations in the hope that it’s enough” when trying to achieve these goals with investment tax credits, but the regulatory approach is preset.
The federal and state governments have provided an estimated $ 5.8 billion to CCUS projects since 2000, according to a new report from the Environmental Defense, which accounts for 0.05% of Canada’s greenhouse gas emissions, or about 3.55 million tons of carbon annually.
According to McDonald’s, the budget spends on accelerating or improving the energy efficiency of buildings and homes, even though this is one of the most cost-effective ways to reduce greenhouse gas emissions.
The budget is $ 1.7 billion over five years to extend the incentives for zero-emission vehicles, and $ 547.5 million over four years for the Ministry of Transport to launch a new purchase incentive program for medium-sized and large zero-emission vehicles.
The budget is a $ 2 billion “future” for Alberta, Saskatchewan and Newfoundland and Labrador to “support regional and regional economic diversification” and develop clean energy opportunities over the next decade.
The budget also expands the role of the Canadian Infrastructure Bank to invest in private sector-led infrastructure projects such as small modular reactors, clean fuel production, hydrogen production, transportation and distribution, and CCUS to support the transition to a low carbon economy.
Over the proposed seven years, $ 2.2 billion will also expand the Low Carbon Economic Fund.