On Supporting CCS
Carbon Capture Needs Strong Technology Policy, Just Like Solar Did
This month’s federal budget deal includes a tax credit for each ton of carbon dioxide pulled out of the atmosphere, which has reignited the debate over carbon capture and storage (CCS) technology. The change to Section 45Q provides a tax credit of $50 per ton of captured CO2 to be sequestered and $35 per ton of CO2 to be reused. Carbon capture has long divided industry, activists, and analysts. Some solar advocates have been critical of CCS, pointing to its high costs, unproven results, and messianic expectations. It is undoubtedly an early-stage, high-risk technology. But solar was too, until very recently. It is because of this risk — not in spite of it — that carbon capture deserves patient government support.