Senators introduce new act to boost carbon dioxide removal industry

U.S. Senators Lisa Murkowski (R-Alaska) and Michael Bennet (D-Colorado) have introduced the Carbon Dioxide Removal Investment Act, aiming to establish a new production tax credit to catalyse the United States' burgeoning carbon dioxide removal (CDR) industry. This legislative initiative is designed to promote innovative CDR technologies that are ready for deployment while also providing support for those still under development.

Senator Murkowski highlighted Alaska's unique attributes, stating, “Alaska possesses unique characteristics that make it a perfect candidate to be a national leader in carbon dioxide removal.” She emphasised that the proposed tax credit would facilitate critical projects, allowing Alaska to harness significant untapped economic potential.

Conversely, Senator Bennet pointed out the urgency of addressing climate challenges, noting the adverse effects climate change has had on Colorado, from rising temperatures to destructive wildfires and drought. He remarked, “In order to meet our climate goals, we need to significantly cut greenhouse gas emissions – and scale up technologies to capture and remove carbon dioxide in our atmosphere.” Bennet underscored the importance of American innovation in the fight against climate change.

According to reports from the National Academies, there is a projected need to remove 10 billion tons of carbon dioxide from the atmosphere annually by 2050, with 1-2 billion tons required from the United States alone. A recent report from the Energy Futures Initiative (EFI) Foundation bolsters the significance of CDR in achieving climate objectives and strongly recommends the implementation of a tax credit as a crucial federal policy strategy to advance the industry.

Support for the legislative initiative has echoed from various organisations. Michele Stockwell, President of BPC Action, expressed support for Murkowski and Bennet, stating, “Scaling CDR is vital to unlocking the full potential of these technologies to both decarbonize the economy and drive economic growth, and we urge Congress to move forward on this important legislation.”

Giana Amador, Executive Director of the Carbon Removal Alliance, also praised the initiative, highlighting the need to update tax codes to accommodate a broad range of carbon removal technologies. She stated, “This tax credit for carbon removal will allow innovative American companies working to permanently remove carbon pollution from our atmosphere to access critical incentives that can power their work — in turn unlocking climate benefits, economic growth, and in-demand jobs across the country.”

Further endorsements include Shannon Heyck-Williams from the National Wildlife Federation, who commended the senators for introducing a bill that offers pathways for innovative solutions to mitigate excess carbon dioxide, ensuring federal support for technologies that contribute to climate stability.

Christina DeConcini, Director of Government Affairs for the World Resources Institute, described the act as an important policy lever for developing and deploying a diverse suite of carbon removal technologies, which are essential for achieving national and global climate goals alongside emissions reductions. She noted the bipartisan support reflected in the legislation and encouraged other members of Congress to consider backing it.

Colorado Governor Jared Polis and Will Toor, Executive Director of the Colorado Energy Office, acknowledged the state's commitment to clean air and the expansion of carbon management initiatives while expressing the need for federal policy support to reach climate targets effectively.

Former U.S. Secretary of Energy, Ernest J. Moniz, contended that achieving a clean economy will necessitate not only a transition to zero-carbon energy sources but also unprecedented efforts to remove carbon from the atmosphere and oceans, calling for sustained tax credits for a broad spectrum of CDR technologies to attract private sector investments in this critical area.

As discussions surrounding carbon removal and management increasingly gain momentum in Congress, the Carbon Dioxide Removal Investment Act represents a significant step towards fostering innovation and supporting the growth of the carbon removal sector in the United States. The full text of the bill, along with additional summaries, is publicly available for those interested in its specific provisions.

Source: Noah Wire Services