Concerns Over US Carbon Capture Tax Credits

Concerns are growing regarding the verification of tax subsidies for carbon capture facilities, as the IRS and EPA are relying on self-reported data from companies, raising fears of potential abuses and inaccuracies in claims. Meanwhile, Canada’s federal carbon tax has faced political backlash after Prime Minister Trudeau granted an exemption for home heating oil in Newfoundland and Labrador, viewed by some provinces as unfair. Saskatchewan halted the carbon tax on natural gas for home heating in response, challenging the exemption legally. In Southeast Asia, Grab has partnered with EcoMatcher to enhance sustainability efforts, aiming for carbon neutrality by 2040 while increasing electric vehicle usage in its fleet. However, at a recent conference, frustrations were voiced over the slow and opaque approval process for US federal tax credits related to carbon capture, with only one company qualifying under the Inflation Reduction Act so far. Overall, while initiatives are in place to address climate change, implementation and fairness issues continue to present challenges.