Clean Energy Coalition Statement Regarding the New Carbon Capture Improvement Act 2021
The Clean Energy Coalition released a statement on the newly introduced Carbon Capture Improvement Act 2021. The Act was introduced by two U.S Senators- Michael Bennet and Rob Portman.
“The Clean Energy Coalition would like to commend Senator Bennet and Portman for their confident show of leadership in introducing the new Act. Carbon Capture projects are costly and take a considerably long time to develop, so most investors have been shying away from the venture. Private Activity Bonds are a suitable financial instrument that has proven to be effective in reducing the financing cost for private infrastructure projects over the years. The new Act provides access to tax-free bonds with a considerably extended repayment period. Thus, this new legislation dramatically reduces the initial cost of investment for carbon capture projects in both power plants and industrial facilities.”
Beyond the 45 Tax Credit, most government financial incentives exclude carbon capture projects. Those that consider the projects demand technical modifications to enable the projects to qualify for their funding. Expanding the financing options available for carbon capture financing makes additional capital readily available in better conditions. Thus, increasing the chances for future use and reduction of carbon emissions.
The new Act is the most recent piece of bipartisan legislation that seeks to bolster federal effort and commitment towards accelerating the economywide use of carbon capture technologies. Thus, it helps increase our chances of meeting the set climate goals. These complementary efforts by the government will enable the rise of private investment in carbon capture technology which is necessary to put the country on a winning path to the fight against carbon emissions.