U.S. President Joe Biden has signed the CHIPS Act, a bipartisan law that allows $1 billion in funding for CO2 removal research, development and deployment from 2023 to 2026. This is twice the Energy’s Department current budget for RD&D.
“The CHIPS Act drives carbon removal forward, backed by a federal commitment for multiple stages of project development: research, demonstration, and deployment,” said Ben Rubin, Executive Director of the Carbon Business Council. “As innovators work on bending the technology cost curve for carbon removal, a tech neutral R&D approach will accelerate a multitude of solutions that restores our climate and creates economic growth. The CHIPS Act galvanizes carbon removal not only through direct federal support, but also by signaling the strength of the market to the private sector. The Carbon Business Council thanks everyone who helped create this R&D opportunity.”
The Carbon Business Council is a nonprofit coalition, where member companies work together to support climate action. The council is a resource for its members, lawmakers, the energy sector and the enviromental community to advocate for climate change action.
In addition to being a $280 billion investment toward the U.S. semiconductor industry, the CHIPS Act will play an important role in supporting climate actions through research and technology development.
In the coming five years, the bipartisan bill could direct an estimate of $67 billion toward the growth of zero-carbon sectors. The bill could fund scientific research on nanotechnology, clean energy, AI and disaster resilience research. The CHIPS Act could thus become one of the biggest climate bills ever passed by the U.S. Congress. It is more than double the size of climate spending under the 2009 stimulus bill during Barack Obama’s presidency.
The CHIPS Act was passed by large majorities of both parties, with 41 Republicans and almost all Democrats supporting the bill in the House and the Senate.