The Trudeau government’s new fiscal plan also includes a 60-per-cent credit for investment in direct air capture technologies to remove carbon from the atmosphere.
Conventional oil producers in particular were disappointed with the federal government’s decision to opt against extending the credit to projects that capture carbon dioxide for use in enhanced oil recovery , a process that involves injecting CO2 into existing oil fields to push trapped oil out of the ground.
“We are, in the main, disappointed that CCUS-enhanced oil recovery is not included,” Goodman said.
Environmentalists have been largely opposed to extending an investment tax credit for CCUS to the oil and gas sector on the grounds that it could prolong the life of the fossil fuel industry at a time when production should be declining in order to meet Canada’s climate goals.
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