Carbon Management und der US-Inflation Reduction Act
Summary
The US Inflation Reduction Act (IRA) has significantly increased 45Q tax credits for carbon capture and storage (CCS) and direct air capture (DAC), lowering entry thresholds for industrial emitters and extending project start dates to January 1, 2033. The document suggests Germany should adopt a national carbon management strategy, financial incentives like Carbon Contracts for Difference (CCfDs), and business models for negative emission technologies to support its industrial decarbonization.
Key insights
- The Inflation Reduction Act of 2022 (IRA) increases the 45Q tax credit for CO2 captured from industrial and power plants and stored in saline geological formations from 50 to 85 $/tonne.
- For Direct Air Capture (DAC) stored in saline geological formations, the 45Q tax credit has been increased from 50 to 180 $/tonne.
- The IRA lowers the minimum annual CO2 capture thresholds required to qualify for credits: from 100,000 tonnes to 12,500 tonnes for industrial emitters, and from 100,000 tonnes to 1,000 tonnes for DAC facilities.
- The deadline for physical construction to begin for CCS/DAC projects to be eligible for the credit has been extended by seven years to January 1, 2033.
- To achieve a climate-neutral industry and secure jobs, the document argues that Germany must develop a national carbon management strategy, provide financial incentives such as Carbon Contracts for Difference (CCfDs), and create scalable business models for negative emission technologies.
Cite the original document
- APA
- Clean Air Task Force (n.d.). Carbon Management und der US-Inflation Reduction Act. https://cdn.catf.us/wp-content/uploads/2023/01/26094057/CATF_IRAFactsheet_German_01.25.2377.pdf
- Chicago
- Clean Air Task Force. Carbon Management und der US-Inflation Reduction Act. n.d. https://cdn.catf.us/wp-content/uploads/2023/01/26094057/CATF_IRAFactsheet_German_01.25.2377.pdf.
- Wikipedia
- {{cite report |author=Clean Air Task Force |title=Carbon Management und der US-Inflation Reduction Act |url=https://cdn.catf.us/wp-content/uploads/2023/01/26094057/CATF_IRAFactsheet_German_01.25.2377.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{cleanairtaskforcendcarbon, author = {{Clean Air Task Force}}, title = {{Carbon Management und der US-Inflation Reduction Act}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2023/01/26094057/CATF_IRAFactsheet_German_01.25.2377.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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