Carbon capture credit on the right path, but falls short: Brad Wall
BNN Bloomberg
The former premier of one of Canada’s largest oil-producing provinces said the federal government’s new carbon capture tax credit doesn’t quite live up to its full potential even if it's a step in the right direction to reduce emissions.
The former premier of one of Canada’s largest oil-producing provinces said the federal government’s new carbon capture tax credit doesn’t quite live up to its full potential even if it's a step in the right direction to reduce fossil fuel emissions.
Brad Wall, special advisor at Osler Hoskin & Harcourt LLP and former Saskatchewan Premier, said there’s a key industrial process – called enhanced oil recovery – that he wishes the tax credit would be eligible for.
“[The federal government] stopped short of actually giving this quiver all the arrows that it could and, very significantly, that would be enhanced oil recovery,” Wall said in an interview on Thursday.
Enhanced oil recovery is a process used in oil production to make it easier to extract crude from underground.
In its federal budget released this month, the Liberals proposed a much-anticipated tax credit for carbon capture, storage and utilization to help Canada reduce its emissions and meet its climate targets. Companies can receive a 50 per cent tax credit if they invest in various carbon capture equipment and a 37.5 per cent credit for investments in the transportation, storage and usage of carbon.
“Let me say that the 50 per cent tax credit is a step in the right direction,” Wall said.
