United States

The Bipartisan Infrastructure Law (BIL) aims to tackle the climate crisis and advance environmental justice. The law includes more than $62 billion for the US Department of Energy (DOE) to deliver a more equitable clean energy future for the American people and includes over $12 billion for carbon capture, direct air capture, and industrial emission reduction.

In December 2021, the DOE established a new Office of Clean Energy Demonstrations to oversee the $21.5 billion in BIL funding for clean energy demonstration projects using innovative technologies such as clean hydrogen, carbon capture, grid-scale energy storage, and advanced nuclear reactors.

The law earmarks:

• $2.54 billion for the Carbon Capture Demonstration Projects Program
• $2.1 billion for the Carbon Dioxide Transportation Infrastructure Finance and Innovation Program
• $937 million for the Carbon Capture Large-Scale Pilot Programs
• $310 million for the Carbon Utilization Program
• $500 million for the Clean Energy Demonstration Program on Current and Former Mine Land including fossil-fuelled electricity generation with carbon capture, utilization, and sequestration

Further information: Bipartisan Infrastructure Law

The most significant climate legislation in US history, the Inflation Reduction Act (IRA) will fundamentally alter the carbon capture landscape. With $369 billion allocated for clean energy and climate change mitigation initiatives, the IRA is expected to reduce America’s greenhouse gas emissions (GHG) by around 40%, compared to 2005 levels.

The bill will support the production of clean hydrogen. The size of the credit scales with the amount of emissions reductions, achieving a maximum of $3/kg-H2 for a project with near zero emissions.

The bill’s CCUS funding will:

• Substantially increase the amount of 45Q credits for domestic CCUS projects
• Make it easier for CCUS projects to qualify for 45Q credits
• Provide significant new avenues for monetising 45Q credits
• Extend the deadline to begin construction on 45Q credit-eligible projects from 2026 to 2033
• Increased the value of 45Q credits to $85 per tonne for point source carbon capture

Further information: Inflation Reduction Act, Leading the way: America boosts industrial carbon capture

The Regional Greenhouse Gas Initiative (RGGI) is the first market-based, cap-and-invest regional initiative in the US. Within the RGGI states, fossil-fuel-fired electric power generators with a capacity of 25 megawatts or greater ('regulated sources') are required to hold allowances equal to their CO₂ emissions over a three-year control period. It is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia to cap and reduce power sector CO₂ emissions. 

RGGI is composed of individual CO₂ Budget Trading Programs in each participating state. 

Further information: RGGI

The Cap-and-Trade Program is a key element of California’s strategy to reduce GHG emissions. It complements other measures to ensure that California cost-effectively meets its goals for GHG emissions reductions. This regulation creates a powerful economic incentive for significant investment in cleaner, more efficient technologies. The California Cap-and-Trade Program (45Q) began operation in 2012 and the program applies to emissions that cover approximately 80% of the state’s GHG emissions.

Further information: Cap-and-Trade Program

Funding opportunity (value TBC) to be confirmed in near future for carbon dioxide transportation infrastructure finance and innovation (CIFIA) Future Growth Grants (FGG).

Further information here

$83m for decarbonization of hard-to-decarbonize industrial sectors, such as chemicals and refining, iron and steel, cement and concrete, forest and paper products, food and beverage, glass and aluminum.

Find out more here

The IRA 2022 dedicates $369 billion to fight climate change. CCUS would see a major boost in 45Q credits with $3.2 billion dedicated to CCUS tax credits and enhancements made to 45Q.

Further information: Inflation Reduction Act

The BIL includes more than $62 billion for the US DOE to deliver a more equitable clean energy future for the American people.

Further information: Bipartisan Infrastructure Law<