Billions of taxpayer dollars originally allotted for carbon capture may instead help oil companies increase production, Floodlight reports.
Occidental Petroleum CEO Vicki Hollub has pushed for federal support, arguing carbon capture is essential for enhanced oil recovery, which extracts more oil from aging wells.
Critics warn this could increase fossil fuel use, contradicting global climate efforts.
While the Biden administration allocated about $8.2 billion for carbon capture and increased a tax credit for carbon capture estimated to cost $30 billion through 2032, the Trump-backed Project 2025 calls for ending these subsidies, deeming them economically unviable.
Despite the controversy, more than 270 carbon capture and storage projects have been announced, with Occidental investing heavily. However, shifting political priorities may impact funding. Environmentalists argue using captured carbon for oil extraction prolongs fossil fuel dependency, while industry advocates say it supports a transition to a lower-carbon future. The future of carbon capture funding remains uncertain as the debate continues.
