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💡 The Canadian government has earmarked CAD $135 million to expand its public procurement of low-carbon fuels to include permanent carbon dioxide removal (hashtag#CDR). At the moment, it’s de facto tech neutral, as no CDR methods have been specified.
📜 The broadened procurement mandate of the Low-Carbon Fuel Procurement Program (LCFPP), highlighted within a footnote of the 2024 budget, allows governmental agencies to buy carbon removal credits to address transportation fleet emissions.
💵 The revision has increased the program's funding to $134.9 million over 8 years starting in 2024-25. This shift is not just a funding increase but a strategic reallocation, as any unused funds from the previous fiscal year will be rolled over within the fiscal framework.
📈 All of this is aligned with broader national policy - reflecting Canada’s Carbon Management Strategy and their commitment to deploying carbon management technologies, including CDR, for climate policy - Canada has a current ambition to sequester 16 million tonnes/year by 2030.
🎯 These developments demonstrate Canada’s strategic carbon management approach, however, there is a growing push for a dedicated CDR procurement programme to help scale Canada’s durable CDR industry.
⁉️ The allocation of CDR procurement is unclear, its place within the LCFPP makes me think the amount of CDR procured could be left to what remains in the budget, for example, in the case where there is not enough fuel on the market.
📣 Shout out to Carbon Removal Canada and Na'im Merchant for their instrumental role in advocating for the necessity of integrating carbon management technologies into national strategies. I recommend stakeholders review their analysis of what a dedicated CDR procurement framework could entail - check it out here: https://lnkd.in/dTeVYrwP
👀 I’ll be keeping an eye on this, we’ll know by the end of the year how the breakdown ends up.
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