Last week, the Government of Canada announced a new Request for Standing Offer as part of its plan to invest at least $7 million (CAD $10 million) in carbon dioxide removal (CDR) credits.
Through this motion, Canada becomes the first national government to move forward with a dedicated carbon removal procurement program. This step will enable federal departments to purchase CDR credits as a measure aimed at reducing net greenhouse gas emissions.
Under this Request for Standing Offer, the Canadian government is interested in CO2 removal credits generated through pathways that meet its technological requirements.
These pathways include Direct Air Carbon Dioxide Capture and Permanent Storage (DACCS), Bioenergy with Carbon Capture and Storage (BECCS), biochar, other Biomass Carbon Removal and Storage (BiCRS), and enhanced mineralization.
For each of these CDR streams, the government is running a separate competitive process, where submissions will be evaluated against a criterion of the highest combined rating of technical merit and price.
To be eligible, the CDR project and any associated CO2 storage activities must be located in Canada. The period for the standing offer will be between the award day and March 31, 2029.
This decision was received enthusiastically from the broader carbon removal community, with stakeholders seeing this action as the demand signal needed in order for CDR to grow and scale.
One of the CDR industry representatives active in Canada is the Carbon Business Council, which unites more than 100 organizations in a global coalition working to accelerate CDR market development.
The Carbon Business Council is also spearheading a Canada working group, which brings together 20+ organizations engaged in or exploring CDR deployment in Canada.
Relevant: New Policy Primer By Carbon Business Council Offers Pointers On Advancing CDR In Canada
Commenting on the government’s call for bids, Ben Rubin, Executive Director of the Carbon Business Council and publisher of the Carbon Herald, stated:
“The Carbon Business Council is grateful to the Government of Canada for building demand for carbon removal with the launch of the procurement program. By purchasing high-integrity credits for carbon dioxide removal, the federal government will provide catalytic support to projects happening across Canada and incentivize innovation. Government procurement also provides a clear market signal that will help boost investor confidence and grow demand for responsible deployment of carbon dioxide removal solutions.”
He added, “Carbon removal is forecast to be a trillion-dollar industry and is poised to create jobs in countries that establish clear, predictable pathways for deployment. Canada is poised to play a leadership role. As carbon removal scales in Canada, taking a tech-inclusive policy approach will ensure a level playing field for innovation.”
Read more: In A New Analysis, Canada Energy Regulator Reflects On The Country’s Growing CDR Sector
