Canada is advancing its carbon removal strategy by developing a protocol for Direct Air Carbon Dioxide Capture and Geological Storage (DACCS).
This plan will establish a system for companies that extract CO2 directly from the atmosphere and permanently store it underground to generate federal offset credits. These credits will be tradable under Canada’s existing Greenhouse Gas Offset Credit System Regulations.
This initiative aims to stimulate investment in the nascent field of direct air capture (DAC) technology, which is considered a critical tool for mitigating climate change.
The proposed protocol, released by Environment and Climate Change Canada, is subject to public review until March 28, 2025.
Key investments and partnerships are propelling DAC development in Canada. Breakthrough Energy, founded by Bill Gates, has committed $40 million to Deep Sky for the creation of a DAC testing facility in Alberta.
This site will provide a platform for companies to test and improve their carbon removal technologies, accelerating their commercial readiness.
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“Scaling direct air capture requires significant investment and collaboration,” said Rafael Barker, managing director at Breakthrough Energy. “With Canada’s new protocol, we expect more companies to enter this space.”
Furthermore, the Pathways Alliance, a consortium of major oil sands producers such as Canadian Natural Resources and Suncor Energy, is pursuing a C$16 billion carbon capture and storage project.
Although focused on industrial CO2 emissions, this project shares technological similarities with DACCS and demonstrates the growing momentum behind large-scale CO2 sequestration. The public consultation period for the DACCS protocol, lasting 60 days, allows stakeholders to provide feedback to Environment and Climate Change Canada until March 28, 2025.
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A webinar is scheduled for February 19, 2025, where officials will present an overview of the protocol and address questions from industry representatives. The information gathered during the consultation will inform the final version of the DACCS protocol and potentially lead to regulatory changes.
This inclusive process ensures that industry stakeholders, investors, and researchers can contribute to the refinement of the framework before its official implementation.
By creating offset credits for DAC ventures, Canada is progressing toward its net-zero emissions target. The federal offset credit system will offer financial incentives, potentially making carbon removal a commercially viable industry.
