Scroll Top

Why Carbon Capture and Storage Is Not a Net-Zero Solution for Canada’s Oil and Gas Sector Contribution By Laura Cameron, Angela Carter – February 2023


  • Reducing emissions from Canada’s oil and gas production is a priority, yet it presents unique challenges. Industry representatives consider carbon capture and storage (CCS) to be the sector’s primary emission reduction solution, but there is a lack of evidence on the efficacy of this approach and its consistency with Canada’s net-zero commitment.
  • There are seven CCS projects currently operating in Canada, mostly in the oil and gas sector, capturing about 0.5% of national emissions. CCS in oil and gas production does not address emissions from downstream uses of those fuels. Captured carbon is used predominantly for enhanced oil recovery to facilitate additional oil extraction.
  • CCS in the oil and gas sector is expensive—as much as CAD 200 per tonne for currently operating projects—as well as energy intensive, slow to implement, and unproven at scale, making it a poor strategy for decarbonizing oil and gas production, as evidenced by the track record of the technology in Canada and globally.
  • Despite this, the federal government provides substantial support for CCS, having committed at least CAD 9.1 billion public dollars to date, alongside CAD 3.8 billion from the governments of Alberta and Saskatchewan. Industry is seeking further public funding. The U.S. Inflation Reduction Act (IRA), by comparison, offers much less financial support for CCS than what is already on the table in Canada: by 2030, Canada’s CCS Investment Tax Credit is estimated to provide double the subsidy amount offered via the IRA to CCS.
  • Investing in CCS is a risky investment for taxpayers and comes with a significant opportunity cost for near-term, more cost-effective solutions.

To read the full report click here:

Acknowledgement for source: International Institute for Sustainable Development

Privacy Preferences
When you visit our website, it may store information through your browser from specific services, usually in form of cookies. Here you can change your privacy preferences. Please note that blocking some types of cookies may impact your experience on our website and the services we offer.