Canada's proposed Productivity Mega Deduction would let businesses write off qualifying capital investments in the first year they are used. For the Pathways carbon capture and storage project, that could shift the economics on billions of upfront spending, since participating oil sands producers would recover more capital sooner through the tax system. The project still needs binding agreements by mid-November and a final investment decision before construction starts. Pathways plans to capture about six million tonnes of CO2 per year from multiple oil sands operations, transport it through a shared pipeline, and store it underground near Cold Lake. Even with the tax change, operating costs remain a concern. The federal investment tax credit, Alberta's incentive, and carbon market revenue would need to cover ongoing capture and storage expenses. Whether the Nov. 15 deadline holds will show if the policy package is enough.
