US carbon abatement group calls for more incentives
A US consortium advocating for improved carbon capture technology said in an August 3 letter to lawmakers that tax incentives and other measures could support federal emissions goals.
“As you consider legislative proposals to strengthen our nation’s infrastructure, combat climate change and recover from the COVID-19 pandemic, we urge you to prioritise a targeted suite of carbon management policies as an essential component of any forthcoming legislative package,” a letter from the Carbon Capture Coalition and more than 165 other partners read.
The US Senate is considering a $1 trillion infrastructure bill. Running nearly 3,000 pages, the measure includes more than $100bn for clean energy provisions.
The coalition, however, called for more incentives that would help the administration of president Joe Biden realise its aim of net-zero carbon emissions by 2050.
Focusing largely on tax credits, Brad Crabtree, the director of the coalition, said its package of measures could lead to an exponential increase on carbon sequestration.
“Enacting this targeted suite of policies could deliver a 13-fold scale-up of carbon management capacity by 2035 toward economy-wide commercialisation of carbon capture, removal and utilisation technologies and the development and buildout of associated CO2 transport and storage infrastructure,” he said.
Enacted in 2008, 45Q tax credits are performance-based incentives meant to spur carbon capture and storage, or sequestration.
Several bipartisan initiatives tabled so far this year have encouraged a build up for 45Q tax credits.
Tim Ryan, a Democratic member of the House of Representatives for Ohio, was joined by three fellow Democrats and four Republicans in introducing the Coordinated Action to Capture Harmful Emissions Act in May. His measure, had it passed, would have offered more tax credits for industrial facilities and power plants that find ways to capture carbon from their facilities.
The industry is already advancing on similar efforts, with or without the additional tax credits. Exxon Mobil early this year advanced the idea of a $100bn CCS hub in Houston that could capture and store up to 100mn mt/yr of CO2 by 2050.