FOR IMMEDIATE RELEASE
March 1, 2023
Contact:
Collin Rees, collin@priceofoil.org
Valentina Stackl, valentina@priceofoil.org
Response: New Carbon Capture Subsidy Bill Would Prolong Fossil Fuel Industry’s Power
WASHINGTON, DC — This week, U.S. Senators Sheldon Whitehouse (D-RI) and Bill Cassidy (R-LA) introduced the Captured Carbon Utilization Parity Act, which would increase subsidies for carbon capture utilization from the levels set in the recent Inflation Reduction Act.
The proposed bill would increase the tax credit for utilization of captured carbon to match the current credit for stored carbon. Under previous versions of the carbon capture utilization tax credit, the vast majority of claimed credits have gone to oil companies claiming it for enhanced oil recovery (EOR), which research has shown increases oil production and overall emissions.
In response to the new bill, Collin Rees, United States Program Manager at Oil Change International, released the following statement:
“Carbon capture, utilization, and storage is a dangerous distraction from the urgent work needed to actually confront the climate crisis, including a rapid and equitable phase-out of fossil fuels. Giving more public money to prolong Big Oil’s political power and profits is the wrong approach and a poor use of public funds.
“Rather than expand subsidies for false fixes like carbon capture yet again, policymakers should support existing bills like Reps. Ro Khanna, Raúl Grijalva, and Mike Quigley’s recent legislation to end subsidies for enhanced oil recovery and Sen. Bernie Sanders and Rep. Ilhan Omar’s End Polluter Welfare Act to phase out all fossil fuel subsidies.”
###