Torys LLP outlines Canada's carbon removal investment framework, citing 700,000 unit prepurchases

Canadian law firm Torys LLP released an investment primer detailing Canada's legal and financial frameworks for carbon capture, utilisation, and storage (CCUS) and carbon dioxide removal (CDR) sectors, including biochar. The report indicates that total Canadian CDR credit prepurchases increased from approximately 75,000 units in 2024 to over 700,000 units in 2026. This growth is driven by federal carbon pricing, investment tax credits, and public procurement initiatives, positioning Canada for institutional capital deployment. Despite market momentum, investors face challenges such as carbon price fluctuations, high technology scaling costs, and complex subsurface rights. The Canadian government has introduced fiscal incentives, public procurement, and revenue de-risking mechanisms, including a 2024 commitment to procure CDR services and refundable Investment Tax Credits covering up to 60 per cent of eligible capital costs.

This summary was written by carbon.fyi from the reporting linked above. It is not a quotation; cite the original source.