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With these three projects, Canada’s greenhouse gas emissions could be reduced at those facilities by as much as 90 per cent, totalling a reduction anywhere from 1.5 million to five million tonnes a year. A scaled economic venture of this size would be critical in combating the significant emissions coming from the heavy industries that are essential to Canada’s economic well-being.
We’re not suggesting that any of this will be easy. While carbon capture is a proven technology — second-generation advances in carbon capture see gains in efficiency as well as significant cost reductions (up to 67 per cent in capital costs alone) as outlined in the International CCS Knowledge Centre’s Shand CCS Feasibility Study, but there are significant policy barriers to its deployment. In addition, large up-front capital costs and new considerations surrounding advanced deployment by companies will be an obstacle.
But that’s where the right incentives come in. And with the federal government receptive to stimulus spending, the timing is right for deploying this technology of the future. From helping Canada achieve its emissions reductions to spurring economic growth, boosting productivity and supporting the diversification of Canada’s economy, carbon capture technology can play a vital role in creating an economically sustainable route to deep emissions cuts.
Rarely do environmental and economic policies align so well. We need the government to act now to capitalize on this synergy. We cannot let one of the best chances we have at a cleaner, more prosperous future burn up into thin air.
Michael Morrison is a Calgary-based tax partner with RSM Canada, a global provider of audit, tax and consulting services focused on middle-market businesses.
