The World Coal Association (WCA) has welcomed increased and extended tax breaks for companies that invest in carbon capture use and storage (CCUS) technologies in the United States. The provision is part of a two-year budget deal which was approved last week by the US Congress.
Reacting to the news, WCA Chief Executive, Benjamin Sporton said:
- This could be a game-changer for the future of CCUS technologies in the US. As has been the case with renewable technologies, tax credits can create huge investment opportunities for faster development and deployment of CCUS.
- Technological barriers to CCS have now largely been overcome. What is urgently needed now is policy support and investment to drive increased deployment. The 45Q provisions should provide significant incentives to drive investment in CCUS, which many experts agree is crucial for achieving global climate goals.
- The implementation of enhanced policy support for CCUS in the United States should encourage other countries to act in getting policy mechanisms in place to help drive deployment of this essential climate technology.
- The Global CCS Institute reckons we need over 2000 CCUS facilities by 2040, but there are only 37 large-scale CCS projects today. We’re in a race against time, so every support to bolster faster deployment is good news.
- CCS is the only technology able to eliminate emissions from coal and gas-fired power plants, and is also one of few technologies that can address emissions from industrial processes, including the production of steel, cement, and other chemicals, all of which will remain critical building blocks of modern society.