The Canadian government made a commitment Thursday to help cover expenses of reducing industrial greenhouse gas (GHG) emissions by providing investment tax credits for carbon capture, utilization and storage (CCUS).

The 2022 federal budget plan presented by Finance Minister Chrystia Freeland set CCUS tax credit rates of 60% for direct air capture systems, 50% for other capture methods and 37.5% for transportation, storage and utilization hardware.

Prime Minister Justin Trudeau’s government is leaning heavily on the natural gas and oil industry to reduce emissions.

The CCUS aid program outlined by Freeland stops short of a maximum 75% tax credit rate that was sought by the Canadian Association of Petroleum Producers (CAPP), the senior voice of the industrial sector expected...