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illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:
🗞️ Driving the news: The United States and Canada are both ramping up financial incentives to support Direct Air Capture (DAC) technologies to remove CO2 from the atmosphere
• The U.S. has enhanced the 45Q tax credit under the Inflation Reduction Act (IRA), while Canada has introduced the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit as part of its Bill C-59
🔭 The context: The U.S. 45Q tax credit offers up to $130 per ton of CO2 captured and stored, with project eligibility extended to 2032
• In contrast, Canada's CCUS tax credit provides a 60% rebate on capital costs for CO2 capture equipment, focusing on large-scale industrial projects
• These initiatives aim to make both countries leaders in the emerging carbon removal industry
🌍 Why it matters for the planet: These incentives are crucial for accelerating the deployment of DAC technologies, which play a vital role in reducing atmospheric CO2 levels
• By promoting large-scale carbon capture projects, both the U.S. and Canada are taking significant steps toward achieving their climate targets and supporting global efforts to mitigate climate change
⏭️ What's next: The U.S. has already allocated $3.5 billion to build regional DAC facilities, with major projects underway in Texas and Louisiana
• Canada’s approach targets specific industrial sectors and offers incentives through 2040, potentially leading to increased private investment and new carbon capture projects
💬 One quote: “The Canadian 60% rebate for upfront capital will help attract private capital investment into Canada,” notes materials scientist Phil De Luna
📈 One stat: Under Canada’s CCUS tax credit, companies can receive up to 72% in covered capital expenses for eligible projects, including additional provincial incentives
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