Natural Resources Canada (NRCan)

1. Policy and Strategy Development

NRCan plays a pivotal role in shaping the national framework for CCUS deployment by aligning policy initiatives with Canada’s climate and energy goals:

• CCUS Investment Tax Credit (ITC):

  NRCan was instrumental in the establishment of the ITC, introduced in 2022 to incentivize private sector investment in CCUS. This refundable tax credit covers:

  • 50% of qualified expenses for dedicated geological storage projects.
  • 37.5% for projects involving enhanced oil recovery (EOR).
  • Gradual reductions after 2030 to push for timely project deployment.

• Stakeholder Coordination:

  NRCan acts as a bridge between federal and provincial governments and the private sector to ensure alignment on CCUS project implementation. This includes harmonizing provincial regulations with federal objectives, fostering intergovernmental collaboration, and facilitating partnerships with industry stakeholders.

2. Research and Development (R&D)

NRCan drives innovation in CCUS technologies through its advanced research facilities:

• CanmetENERGY Laboratories: Located in Ottawa, Devon, and Varennes, these labs conduct cutting-edge research on:
  • CO₂ capture processes tailored to industrial applications.
  • Advanced materials for reducing energy costs in carbon capture.
  • Geological storage technologies ensuring long-term safety and efficiency. These facilities contribute to pilot projects, including real-world testing of CCUS technologies in emissions-intensive sectors such as cement, steel, and oil and gas.

3. Funding Mechanisms

NRCan provides financial support to accelerate the deployment of CCUS technologies, helping reduce emissions in high-impact industries:

• Clean Energy Innovation Program (CEIP):

  CEIP funds R&D and demonstration projects that contribute to clean energy solutions, including CCUS.

  • Recent allocations included grants for industrial CCUS pilot projects in Alberta and Saskatchewan.
  • Emphasis is placed on scalable technologies that can be adopted across multiple sectors. Source: Clean Energy Innovation Program

• Federal Grants for Pilot Projects:

  NRCan collaborates with industry leaders to fund large-scale demonstration projects like:

  • [The Boundary Dam CCS Project in Saskatchewan.](https://sequestration.mit.edu/tools/projects/boundary_dam.html#:~:text=This smaller scale project has,Technology Research Centre (PTRC).)
  • [The Alberta Carbon Trunk Line (ACTL)](https://sequestration.mit.edu/tools/projects/alberta_trunk_line.html#:~:text=To increase oil production through,provide funding over 15 years.) for CO₂ transportation and storage. These investments aim to validate the feasibility of CCUS technologies while reducing costs for full-scale deployment.

Environment and Climate Change Canada (ECCC)

1. Canadian Net-Zero Emissions Accountability Act

ECCC enforces the provisions of the Canadian Net-Zero Emissions Accountability Act, which sets legally binding climate targets for Canada.

• Interim Milestones: The Act requires the federal government to set interim emissions reduction targets every five years on the path to achieving net-zero by 2050.
• CCUS Integration: To meet these targets, ECCC identifies CCUS as a pivotal technology, particularly for sectors like oil and gas, cement, and steel, which are difficult to decarbonize entirely through renewable energy.
• Transparency: ECCC ensures CCUS projects align with interim targets by requiring proponents to submit robust emissions reduction plans and progress reports.

2. Carbon Pricing Systems and Emissions Reporting