U.S. lawmaker introduces bill to eliminate carbon credits for oil recovery – Reuters

U.S. lawmaker introduces bill to eliminate carbon credits for oil recovery – Reuters

Dec 13 (Reuters) - California lawmaker Ro Khanna introduced a bill into the U.S. House of Representatives on Monday that would prevent investors from securing carbon capture and sequestration tax credits if the carbon is used to boost oil production.

The bill has little chance of being adopted into law, but reflects deep political divisions in Congress over whether and how carbon capture can be used as a tool in the fight against climate change.

The tax credit, known as 45Q, allows companies to earn money for every ton of carbon that they capture off a polluting facility and store underground. That includes carbon injected into oil fields to push trapped oil out of the ground, something the industry calls enhanced oil recovery (EOR).