By Steve Scherer and Nia Williams
OTTAWA (Reuters) – Canada’s federal government and the main oil producing province of Alberta are at odds over who should pay to bolster tax credits and scale up a crucial technology meant to help the country attain its net-zero emissions goal, two sources familiar with the matter told Reuters.
After the United States passed the Inflation Reduction Act in August, which included massive tax credits to develop carbon capture and storage there, the Canadian oil and gas industry has been seeking an increase to what was promised in the April federal budget.
But Prime Minister Justin Trudeau’s government has told oil and gas companies to look to Alberta’s government, saying it has yet to do its fair share, said the sources.
Alberta’s Energy ministry says the ball is in Ottawa’s court.
“We are strongly urging Ottawa to expand the proposed investment tax credit to meet or exceed the Inflation Reduction Act – otherwise, carbon capture investments will be drawn south of the border,” ministry spokesperson Alex Puddifant said.
(Reporting by Steve Scherer in Ottawa and Nia Williams in British Columbia, additional reporting by Rod Nickel in Winnipeg; Editing by Bill Berkrot)
