Carbon Removal in the Bipartisan Infrastructure Law and Inflation Reduction Act

The Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) have provided unprecedented funding for both technological and natural carbon dioxide removal (CDR) in the U.S. The BIL focuses on infrastructure, including $3.5 billion for four regional Direct Air Capture (DAC) Hubs and billions for CO2 transport and storage. The IRA enhances these efforts through an expanded 45Q tax credit, offering up to $180/tCO2 for geologically sequestered DAC, and allocates billions for climate-smart agriculture and forestry, such as $8.45 billion for the Environmental Quality Incentives Program (EQIP). Together, these laws support the full lifecycle of carbon capture and ecosystem restoration to help the U.S. reach net-zero emissions by 2050.

• The Bipartisan Infrastructure Law (BIL) allocates over $12 billion for engineered CDR and complementary infrastructure, and $2.7 billion for land management to increase carbon sequestration.
• Specific technological investments under the BIL include $3.5 billion for four regional Direct Air Capture (DAC) Hubs, each requiring a capacity to capture and sequester or utilize at least one million metric tons of CO2 annually, as well as $2.1 billion for CO2 transport via the CIFIA Program and $2.5 billion for carbon storage validation and testing.
• The Inflation Reduction Act (IRA) expanded the 45Q tax credit, increasing the funding amount to $180 per metric ton of CO2 captured via DAC and sequestered geologically, or $130 per metric ton if used for beneficial uses or enhanced oil recovery.
• The IRA provides substantial funding for natural CDR and climate-smart land management, most notably $8.45 billion for the Environmental Quality Incentives Program (EQIP) to support agriculture and forestry practices that sequester carbon in plants and soils.

APA

World Resources Institute (2022). Carbon Removal in the Bipartisan Infrastructure Law and Inflation Reduction Act. https://www.wri.org/update/carbon-removal-BIL-IRA

Chicago

World Resources Institute. Carbon Removal in the Bipartisan Infrastructure Law and Inflation Reduction Act. 2022. https://www.wri.org/update/carbon-removal-BIL-IRA.

Wikipedia

{{cite report |author=World Resources Institute |title=Carbon Removal in the Bipartisan Infrastructure Law and Inflation Reduction Act |date=22 December 2022 |url=https://www.wri.org/update/carbon-removal-BIL-IRA |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2022carbon, author = {{World Resources Institute}}, title = {{Carbon Removal in the Bipartisan Infrastructure Law and Inflation Reduction Act}}, institution = {World Resources Institute}, year = {2022}, month = dec, url = {https://www.wri.org/update/carbon-removal-BIL-IRA}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }