The Canadian government has expanded tax credits for carbon capture to include enhanced oil recovery (EOR). This process involves injecting captured CO2 into oil reservoirs to increase extraction, a move that has sparked debate over whether it truly reduces net emissions. While the policy aims to incentivize carbon capture by creating a larger market for CO2, critics argue that subsidizing the production of more fossil fuels is counterproductive to net-zero goals. New rules require projects to permanently store 95 percent of the injected carbon to qualify for federal credits.
