US, EU, Canada & Australia Boost Carbon Capture Rules

Recent policy changes in the United States, Europe, Canada, and Australia have reshaped the carbon capture industry. In the United States, updates to the Inflation Reduction Act have expanded tax credits for projects that capture and store carbon dioxide. These changes encourage companies to invest in new technology and improve tracking systems to ensure that captured carbon is safely stored. Industry experts say these updates make projects more financially attractive and secure

In Europe, new rules under the European Green Deal require companies to use standard methods to report on their carbon capture efforts. Along with the Carbon Border Adjustment Mechanism, these rules mean that high-emission industries must work harder to meet strict environmental standards. As a result, industries such as steel and cement are investing in upgrades to comply with these new requirements and avoid extra tariffs on imports.

Canada has streamlined its approval process for carbon capture projects, allowing projects to start faster while still maintaining strong environmental safety standards. The country’s incentives support projects that combine carbon capture with enhanced oil recovery, reducing delays without lowering safety measures. Similarly, Australia has raised its environmental and safety standards for carbon capture facilities, prompting companies to invest in better monitoring systems to manage risks effectively.

International organizations have also updated global standards to ensure that carbon capture projects are safe and effective. Overall, these policy changes are driving the industry to adopt new technologies and improve practices while offering financial benefits and stronger environmental protection for businesses involved in carbon capture.