The Canadian federal government has updated its economic policy to allow enhanced oil recovery (EOR) projects to access carbon capture and storage tax credits. This move follows a policy shift intended to align with energy agreements in Alberta, British Columbia, and Saskatchewan. Under the new rules, EOR projects will receive a credit rate half that of pure geological or concrete storage. The government argues this will increase total carbon storage and improve Canada's competitiveness in energy security, while critics argue it effectively subsidizes further oil production.
