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Carbon Capture and the Inflation Reduction Act: How Germany Can Seize the Carbon Capture Opportunity

January 26, 2023 Category: Policy Work Area: Carbon Capture

The Inflation Reduction Act of 2022 provides critical updates to the 45Q tax credit, which incentivizes the use of carbon capture and storage technologies. This fact sheet outlines for a European audience how the 45Q tax credit works, what the Inflation Reduction Act provides and how this enables industrial decarbonisation. This fact sheet also outlines how Germany, Europe’s largest industrial producer, can seize the opportunity of carbon capture and storage to transform its industry to a climate-neutral one.