The Ontario Chamber of…

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Ontario Chamber of Commerce

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The Ontario Chamber of Commerce (OCC) supports the government’s proposal to enable geological carbon storage in Ontario. It is important to develop a competitive framework for carbon capture and storage (CCS) that improves certainty around both regulations and revenue. The OCC encourages the government to:

Clarify regulations. This includes providing greater clarity around storage rights and long-term responsibility for sites. The Province should also signal a strategy or options under consideration for pore space access. Other jurisdictions (such as Alberta) provide clear parameters to project proponents, which is critical for investment planning and attracting private investments in CCS.

Create a streamlined approval regime for new CCS projects. Ontario will need to ensure an efficient permitting process for carbon dioxide wells, injection activities, and related facilities. The environmental approvals process must protect environmental outcomes while avoiding duplication and minimizing delays.

Align with federal incentive programs. Requirements around CCS projects in Ontario should be compatible with Canada’s fiscal programs to ensure projects are eligible for federal incentives. This includes the new investment tax credit, the Strategic Innovation Fund’s Net-Zero Accelerator, the Clean Fuels Fund, and the Climate Change Action Fund.

Help support the economics of CCS. Investments in the technology must be economically viable to attract investments. Beyond federal assistance, Ontario can support the business case for CCS projects through offset or credit markets. We also applaud the Ontario government’s recent decision to amend the Emissions Performance Standards program to recognize carbon dioxide captured and appropriately sequestered in certain CCS projects as an emission reduction.

Facilitate scalable and cost-effective CCS infrastructure projects. Ensure that any regulatory amendments designed to enable an initial set of CCS projects can be leveraged in the future to support more extensive infrastructure. To minimize the costs associated with CCS regulation while still ensuring public safety, Ontario should adopt open access policies and non-discriminatory rates.

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