Corporations, politicians, and new tax incentives support carbon reduction investments

Hurricanes Ida (and Nicholas) battered the United States and left destruction, tornadoes, and floods behind. These weather events are becoming more common due to climate change. It can lead to costly and painful rebuilding. Report August 2021According to the Intergovernmental Panel on Climate Change, human-induced global warming is already affecting many weather and climate extremes around the world.

American corporations have the unique opportunity of leading the United States in GHG mitigation through environmental, social and governance (ESG). ESG is a set of standards used by values-based investors to allocate potential investments responsibly.Environmental criteria consider how a company performs and/or deploys capital as a steward of nature; social criteria examine how it manages relationships with employees, suppliers, customers and the communities where it operates; as well as governance deals with a companys leadership, executive pay, audits, internal controls and shareholder rights.ESG utilization attracts external investors. ESG utilization allows corporate boards to identify and develop mitigation strategies, improve branding, and help with risk identification. The negative consequences of climate change have become predictable. Corporations should disclose this information to shareholders in their annual 10K forms. These practices can help support responsible corporate growth.

Many American industrial companies have adopted technologies to reduce GHG emissions. The Global CCS Institute defines CCSThis involves capturing carbon dioxide at the source, compressing and transporting it, and then injecting it deep inside a rock formation at a safe and carefully chosen location where it is permanently stored. This process can also capture carbon dioxide (CO2) from ambient air. CCS can also capture CO2 from ambient air.

CCS, despite its ability directly to mitigate climate change is still undervalued and underutilized. The International Energy Agency stated this in a 2016 ReportCCS deployment has been hindered by changes in policy and financial support. CCS is not yet widely used to measure a company’s ESG performance. CCS adoption can bring three distinct benefits. They can help reduce GHG emissions, secure a workable E in ESG strategies, and attract value-based investors. CCS is an established technology that has been used on an industrial scale since 1970. ExxonMobil, ChevronAnd ConocoPhillipsCCS is worth investing in. Federal legislators recognize the potential for CCS. CCS is, for example, in negotiationsSenate Majority leader Chuck SchumerChuck Schumer Warren Buffett denies Sanders’ request for intervention amid union strike Biden lawmakers mourn Harry Reid Harry Reid is a political pugilist and long-serving Senate majority leader. (D.-N.Y.), Sen. Joe ManchinJoe ManchinFour States to have primaries with at least two incumbents in 2022 Biden’s list of to-dos for 2022 looks very similar to 2021’s Biden. MORE(D.W.Va.) stated that his support for federal spending legislation required Democratic backing for carbon capture and utilization.

In July 2021, the U.S. Internal Revenue Service issued guidance that addressed a tax credit to carbon oxide sequestration. CCS deployment becomes more predictable and affordable with developments like this 45Q guidance. It issued guidance in July 2021 that addressed a tax credit to carbon oxide sequestration. It is now that savvy investors and businesses who prioritize ESG can increase their CCS focus while continuing to target carbon mitigation and attract value-based investors.

Samantha Phillips Beers is an Environmental Attorney at the Environmental Protection Agency. She has worked for the federal government for more than 30 year.