Critics Fear Tax Subsidies for Carbon Capture Won’t Be Checked

Published On Sep 20, 2024, 3:53 PM

The article discusses concerns from environmentalists regarding the regulation of federal tax subsidies for carbon capture and sequestration (CCS) programs. While these subsidies have encouraged substantial investment from the oil industry into carbon capture technology, critics argue that the IRS is ill-equipped to monitor and verify the claims made by these companies about their carbon storage processes. The subsidies were significantly expanded under the Inflation Reduction Act of 2022, with an estimated cost to the government of over $36 billion over a decade. The primary worry is that without proper government oversight, companies might exploit the system, undermining the intended climate benefits.