Scaling Up Climate Ambition: Carbon Capture, Removal, and Storage Priorities in the 117th Congress
Summary
The document outlines a proposed U.S. policy package comprising 45Q tax credit enhancements, the SCALE Act, and appropriations from the Energy Act of 2020. Together with the American Jobs Plan, these measures aim to grow U.S. carbon management capacity 13-fold by the mid-2030s. Key recommendations include introducing a 'Direct Pay' option for tax credits, increasing credit values to $85 per metric ton for industrial applications and $180 for direct air capture, and extending the construction window to 2035. Additionally, the SCALE Act is presented as a means to overcome 'chicken-and-egg' infrastructure barriers through DOE cost sharing, EPA permitting support, and the creation of the CO2 Infrastructure Finance and Innovation Act (CIFIA) for low-interest loans.
Key insights
- A combined policy package including 45Q enhancements, the SCALE Act, and the American Jobs Plan could increase the carbon management capacity of the United States by 13 times by the mid-2030s.
- The 45Q tax credit requires four specific reforms to unlock investment: the addition of a 'Direct Pay' option to help developers without sufficient taxable income, increasing credit values to at least $85 per metric ton for industrial use and $180 for direct air capture, extending the construction commencement deadline from 2025 to 2035, and removing eligibility thresholds that limit the credit to the largest CO2 sources.
- The SCALE Act is proposed to resolve the 'chicken-and-egg' dilemma where capture projects and transport/storage infrastructure depend on each other's existence. It would establish a Secure Geologic Storage Infrastructure Development Program, increase EPA funding for Class VI well permitting, and create the CO2 Infrastructure Finance and Innovation Act (CIFIA) to provide low-interest loans and grants for shared transport infrastructure.
- The document advocates for the full appropriation of the Energy Act of 2020 to support R&D, the CarbonSAFE program, and six demonstrations, while noting the American Jobs Plan proposes an additional 10 demonstrations for sectors like steel and cement.
Cite the original document
- APA
- Thompson, J., & Beck, L. (2021). Scaling Up Climate Ambition: Carbon Capture, Removal, and Storage Priorities in the 117th Congress. Clean Air Task Force. https://www.catf.us/2021/05/scaling-up-climate-ambition-carbon-capture-removal-and-storage-priorities-in-the-117th-congress/
- Chicago
- Thompson, John, and Lee Beck. Scaling Up Climate Ambition: Carbon Capture, Removal, and Storage Priorities in the 117th Congress. Clean Air Task Force, 2021. https://www.catf.us/2021/05/scaling-up-climate-ambition-carbon-capture-removal-and-storage-priorities-in-the-117th-congress/.
- Wikipedia
- {{cite report |last1=Thompson |first1=John |last2=Beck |first2=Lee |title=Scaling Up Climate Ambition: Carbon Capture, Removal, and Storage Priorities in the 117th Congress |publisher=Clean Air Task Force |date=25 May 2021 |url=https://www.catf.us/2021/05/scaling-up-climate-ambition-carbon-capture-removal-and-storage-priorities-in-the-117th-congress/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{thompson2021scaling, author = {Thompson, John and Beck, Lee}, title = {{Scaling Up Climate Ambition: Carbon Capture, Removal, and Storage Priorities in the 117th Congress}}, institution = {Clean Air Task Force}, year = {2021}, month = may, url = {https://www.catf.us/2021/05/scaling-up-climate-ambition-carbon-capture-removal-and-storage-priorities-in-the-117th-congress/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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