Budget 2022 adds detail to the investment tax credit for carbon capture, utilization, and storage proposed in the previous budget. Credit rates are set at 60 per cent for investment in equipment to capture carbon dioxide (CO2) via direct air capture and 50 per cent for capture by other methods. The rate is only 37.5 per cent for investment in the transportation, storage, and use of CO2. Total cost is expected to be $2.6-billion over five years. While focusing on CO2 removal supports emissions reduction policies, the problem remains: what is to be done with all the carbon dioxide that is captured? Does government policy adequately address this?

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