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Carbon Capture and the Inflation Reduction Act

February 16, 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 Europe can seize the opportunity of carbon capture and storage to transform its industry to climate neutrality.