Buried Hope: Assessing The Future Of Carbon Sequestration In the U.S. Under The Updated 45Q Tax Credit—Thesis
Geoengineering News
Abstract
The urgent need to combat climate change has prompted governments world-wide to explore innovative policy measures to reduce greenhouse gas emissions. One such measure is the process of carbon capture and sequestration in which carbon dioxide is captured either directly from the atmosphere or prior to its release. This article will analyze updates to the 45Q tax credit passed in the Inflation Reduction Act of 2022, in which Congress increased tax incentives for industries that use carbon capture technology. This analysis will explain carbon capture technology, survey use of the technology, and discuss the viability of the latest updates to the 45Q tax credit. Ultimately, this article predicts that the changes will not produce any meaningful adoption of traditional carbon capture technology in its current form. Without more efficient technology, increased economic incentives will not motivate industries to begin capturing and storing their carbon dioxide. However, changes to the 45Q credit alongside government investment will likely drive down the costs of direct air capture sequestration and could create a profitable market for carbon captured directly from the air.