Canada Includes $135M For Carbon Removal Procurement In 2024 Budget

Apr 19, 2024

Canada has unveiled a game-changing provision in its 2024 federal budget, released on Tuesday, expanding the scope of its Low-Carbon Fuel Procurement Program to include carbon dioxide (CO2) removal services.

“This is huge,” Na’im Merchant, Executive Director at Carbon Removal Canadacommented on his LinkedIn profile, noting that the revelation was “easy to miss” since it was “buried in a footnote” in the 400-page-plus document.

The footnote in question discloses that the government has revised the value of the Low-carbon Fuel Procurement Program to $134.9 million over an eight-year period, commencing in 2024-25.

Notably, any unused funding from the previous fiscal year, 2023-24, will be reallocated within the fiscal framework.

The $135 million program, originally designated to bolster low-carbon fuel initiatives, has now been expanded to encompass the procurement of permanent carbon removal solutions aimed at curbing the intensity of the Canadian Government’s transportation fleet.

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