Wedoany.com Report on Mar 17th, The Canadian government recently announced the launch of a long-term supply request, planning to invest at least CAD 7 million to procure carbon dioxide removal (CDR) credits. This initiative makes Canada the first national government to advance a dedicated carbon removal procurement program, aiming to reduce net greenhouse gas emissions through federal department purchases of CDR credits.

According to the request, the Canadian government seeks CO2 removal credits generated through pathways that meet its technical requirements, including Direct Air Carbon Capture and Storage (DACCS), Bioenergy with Carbon Capture and Storage (BECCS), Biochar, other Biomass Carbon Removal and Storage (BiCRS), and Enhanced Mineralization. For each CDR stream, the government will run independent competitive processes, evaluating proposals based on a combined score of technical merit and price.

Eligible CDR projects and related CO2 storage activities must be located within Canada, with the long-term supply period extending from the award date until March 31, 2029. This decision has received positive feedback from the carbon removal community and is seen as a crucial demand signal to drive CDR growth and scaling.

The Carbon Business Council, active in Canada as a representative of the CDR industry, unites over 100 organizations to accelerate market development. The council also leads a Canadian working group that brings together more than 20 organizations engaged in or exploring CDR deployment.

Ben Rubin, Executive Director of the Carbon Business Council and publisher of Carbon Herald, commented: "The Carbon Business Council appreciates the Canadian government's move to build carbon removal demand by launching this procurement program. By purchasing high-quality carbon dioxide removal credits, the federal government will provide catalytic support to projects across Canada and incentivize innovation. Government procurement also sends a clear market signal that helps boost investor confidence and fosters demand for responsibly deployed carbon dioxide removal solutions."

He added: "Carbon removal is projected to become a trillion-dollar industry and has the potential to create jobs in countries that establish clear, predictable deployment pathways. Canada is well-positioned to take a leadership role. As carbon removal scales in Canada, adopting a technology-inclusive policy approach will ensure a level playing field for innovation." This initiative provides significant momentum for the development of Canada's carbon removal sector.