US Congress Passes Energy Bill with Significant Provisions for Climate and Carbon Capture
23rd December 2020
The United States Congress has passed the end-of-year Consolidated Appropriations Act, containing the Energy Bill, one of the most important pieces of climate legislation further supporting US based industries to take on carbon capture and storage (CCS) projects through significant government incentives.
The bipartisan bill extends the 45Q tax credit by two years, providing more time for energy intensive sectors to invest in CCS, and includes provisions for carbon capture, removal, use and geologic storage that together amount to over $6 billion in funding authorizations over five years.
The Energy Bill is part of a larger $1.4 trillion government relief and spending package, which will provide comprehensive investments to those affected by the economic impacts of Covid. Along with CCS, the bill will support other key climate efforts, including the scale-up of wind and solar and the phase out of hydrofluorocarbons. In total, $35 billion will go towards research, development and deployment of a wide-range of climate mitigating technologies.
Details of the omnibus spending package containing the Energy Bill can be found here.