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Proposed tax credit for carbon capture and storage just another subsidy for oil sector, group says

January 28, 2022

OTTAWA – In a letter sent to Finance Minister Chrystia Freeland, the Canadian Association for the Club of Rome (CACOR) has supported the more than 400 scientists, engineers, and climate modellers in asking that the Government of Canada not introduce a tax credit for carbon capture, utilization, and storage (CCUS).
“A tax credit for oil and gas companies investing in CCUS technology is in direct contradiction of the Government of Canada’s stated intent to eliminate fossil fuel subsidies,” says Jean Dougherty, CACOR Chair. “As recently as December, the Prime Minister asked Natural Resources Minister Wilkinson to work with Finance Minister Freeland to develop a plan to phase out public financing of the fossil fuel sector. Yet here we are suggesting a mechanism that would increase subsidization of Canada’s fossil fuel sector.
“A review of the science and engineering behind CCUS demonstrates that it does not provide value for money, will not help Canada meet its 2030 and beyond GHG emission reduction goals and, when attached to oil, gas, and coal projects which will continue to burn fossil fuels, is not a climate solution at all,” says Dougherty.
Rather than encourage fossil fuel production, CACOR suggests investing in helping Canadian households and firms move away from fossil fuel use. The group says there are many proven technologies that can be deployed at scale now, and has proposed an initial seven initiatives on climate action: CACOR Recommendations (
“We have less than a decade to implement the necessary energy transition,” says Dougherty. “Such a transition will not be helped by offering a CCUS tax credit to the fossil fuel industry. We hope the government will reconsider its current plan and instead get Canada moving swiftly on a real path to a low-carbon economy. Canadian taxpayers should not be asked to cover the cost of CCUS development.”
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The Association is a charitable, non-governmental organization dedicated to intelligent debate and action on global issues. It is incorporated as the Canadian Association for the Club of Rome / Association Canadienne pour le club de Rome. Our Mission is to actively engage the public and decision-makers on key global and Canadian issues by encouraging the sharing of information; we aim to inform and motivate all to take action to limit, stabilize, and reverse demands on local and global ecosystems.

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