The Canadian federal government has formalized a policy shift to allow enhanced oil recovery (EOR) projects to access carbon capture and storage (CCUS) tax credits. This move follows a memorandum of understanding with Alberta and aims to make Canada more competitive for energy investment compared to the United States. While the government argues the measure will increase the amount of carbon stored underground, critics and environmentalists claim the credits act as a direct subsidy for oil production. The update specifies that EOR projects will receive a lower credit rate than those focusing solely on geological storage.
