Canada Includes $135M For Carbon Removal Procurement In 2024 Budget

Canada Includes Carbon Removal Procurement In 2024 Budget - Carbon Herald

Canada has unveiled a game-changing provision in its 2024 federal budget, released on Tuesday, expanding the scope of its Low-Carbon Fuel Procurement Program to include carbon dioxide (CO2) removal services.

“This is huge,” Na’im Merchant, Executive Director at Carbon Removal Canada, commented on his LinkedIn profile, noting that the revelation was “easy to miss” since it was “buried in a footnote” in the 400-page-plus document.

The footnote in question discloses that the government has revised the value of the Low-carbon Fuel Procurement Program to $134.9 million over an eight-year period, commencing in 2024-25.

Notably, any unused funding from the previous fiscal year, 2023-24, will be reallocated within the fiscal framework.

The $135 million program, originally designated to bolster low-carbon fuel initiatives, has now been expanded to encompass the procurement of permanent carbon removal solutions aimed at curbing the intensity of the Canadian Government’s transportation fleet.

“To support the program in achieving climate objectives, additional flexibility in procurement is provided to include carbon dioxide removal services,” the footnote reads.

Relevant: Canada Raises Its Carbon Tax To $80 Per Ton

This strategic pivot aligns with Canada’s broader vision to emerge as a frontrunner in global climate action, Carbon Removal Canada said in a comment on LinkedIn.

By integrating carbon removal initiatives into the Greening Government Strategy and broadening the mandate of the Low-Carbon Fuel Procurement Program, Canada is cementing its position at the forefront of environmental stewardship.

The decision to include carbon removal as an eligible expense within the procurement program signifies a “historic step forward”, underscoring the indispensable role of such technologies in Canada’s environmental strategies, according to Carbon Removal Canada.

The government’s acknowledgment that achieving net-zero emissions by 2050 will necessitate up to 10% reliance on carbon removal emphasizes the criticality of strategic funding and policy integration.

“The financing and strategic inclusion of carbon removal in Canada will help turn Canada’s net-zero ambitions into reality,” Carbon Removal Canada concluded.

Read more: New Report Highlights ‘Daunting’ Challenges On Canada’s Path To Net Zero

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