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ARTICLE · 01 DECEMBER 2023

Boosting Carbon Capture: Federal And Provincial Incentives Propel CCUS Project Development In Alberta

The federal government and the Province of Alberta gave businesses looking to decarbonize through carbon capture, utilization and storage (CCUS) a financial boost by announcing incentives for the development of CCUS projects.

CanadaGovernment, Public Sector

The federal government and the Province of Alberta gave businesses looking to decarbonize through carbon capture, utilization and storage (CCUS) a financial boost by announcing incentives for the development of CCUS projects.

In November 2023, the federal government and the Province of Alberta announced separate measures aimed at incentivizing carbon capture, utilization and storage (CCUS) project development through the federal government's CCUS investment tax credit (CCUS ITC) program, and the Canada Growth Fund and the Province of Alberta's Carbon Capture Incentive Program (ACCIP).

The federal government's Fall Economic Statement 2023 confirmed that the legislation implementing the previously announced CCUS ITC will be introduced this fall. The CCUS ITC will be set at 50% for equipment used to capture carbon and 37.5 for equipment used in transporting and storing carbon. In addition, the draft legislation released last August expanded the CCUS ITC to make a

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