Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canadas Oil and Gas Sector

The document argues that carbon capture and storage (CCS) is an ineffective and expensive solution for decarbonizing Canada's oil and gas sector. It highlights that current projects capture only a small fraction of national emissions, often facilitate further oil extraction through enhanced oil recovery, and require disproportionate public subsidies compared to more cost-effective alternatives like methane reduction. The brief concludes that CCS does not align with the timelines or ambition required to limit global warming to 1.5°C.

• CCS in Canada's oil and gas sector has a limited impact on overall emissions, with seven operational projects capturing approximately 0.5% of national emissions. Specifically, oil and gas sector projects capture about 2.7 million tonnes of CO2 equivalent per year, which represents only 1.3% of the sector's pre-pandemic emissions and 2.6% of the reductions needed for the sector to meet its share of the 2030 national target.
• A significant portion of CCS activity in Canada facilitates further fossil fuel production rather than achieving absolute emission reductions. Approximately 70% of the carbon captured in existing Canadian CCS facilities is used for enhanced oil recovery (EOR), which involves injecting CO2 into declining oil fields to increase production.
• CCS is characterized by high capital and energy intensity, making it more expensive and less effective than other decarbonization options. For example, the Quest project's cost was about CAD 200 per tonne up to 2021, whereas methane reduction is estimated to cost CAD 17 per tonne of greenhouse gas emissions under current Canadian regulations.
• The Canadian government provides substantial financial support for CCS that exceeds the subsidies offered by the U.S. Inflation Reduction Act (IRA). Canada has committed at least CAD 9.1 billion in public funds to date, and the federal CCS Investment Tax Credit (ITC) is estimated to provide double the subsidy amount offered via the IRA to CCS by 2030.
• CCS deployment timelines are incompatible with the urgency of 1.5°C-compatible pathways and 2030 targets. Commercial projects in Canada have taken at least 5 years to move from announcement to storage; for instance, the Boundary Dam project was approved in 2008 but did not become operational until 2014.
• CCS only addresses production-side emissions, which represent about 15% of the total life-cycle emissions of oil and gas fuels, leaving the largest share of emissions from downstream end-uses unaddressed.

APA

Cameron,, A. C. (2023). Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canadas Oil and Gas Sector. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/carbon-capture-not-net-zero-solution

Chicago

Cameron,, Angela Carter,Laura. Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canadas Oil and Gas Sector. International Institute for Sustainable Development, 2023. https://www.iisd.org/articles/deep-dive/carbon-capture-not-net-zero-solution.

Wikipedia

{{cite report |last1=Cameron, |first1=Angela Carter,Laura |title=Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canadas Oil and Gas Sector |publisher=International Institute for Sustainable Development |date=9 February 2023 |url=https://www.iisd.org/articles/deep-dive/carbon-capture-not-net-zero-solution |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cameron2023why, author = {Cameron,, Angela Carter,Laura}, title = {{Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canadas Oil and Gas Sector}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = feb, url = {https://www.iisd.org/articles/deep-dive/carbon-capture-not-net-zero-solution}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }