What is the difference between CCUS and CDR?

CCUS (Carbon Capture, Utilisation and Storage) captures CO2 from point sources like industrial facilities and power plants before it enters the atmosphere. CDR (Carbon Dioxide Removal) extracts CO2 that is already in the atmosphere using technologies like direct air capture (DAC), BECCS, or enhanced weathering. CCUS prevents new emissions; CDR reverses existing ones. Both are needed but serve fundamentally different roles in decarbonization.

What is the decarbonization paradox?

The decarbonization paradox refers to the fact that most organizations can achieve 80% of their emissions reductions relatively cheaply through energy efficiency, fuel switching, and electrification. But the last 20% — tied to process chemistry, high-temperature heat, long-lived infrastructure, and residual emissions — requires fundamentally different and more expensive tools like CCUS and CDR.

What is the U.S. 45Q tax credit for carbon capture?

Section 45Q provides tax credits for carbon capture: $85 per tonne for geologic storage, $60 per tonne for enhanced oil recovery (EOR) or utilisation, and $180 per tonne for direct air capture (DAC) with geologic storage. Credits are available for 12 years from the date a facility is placed in service, with construction deadlines and prevailing wage requirements.

What is Canada's CCUS Investment Tax Credit?

Canada's CCUS ITC provides refundable investment tax credits: 60% for direct air capture equipment, 50% for other carbon capture equipment, and 37.5% for carbon transportation and storage. These rates apply from 2022 to 2030 and are halved (30%/25%/18.75%) for 2031 to 2040. Projects must store CO2 in eligible geologic formations in Canada.

What is a dynamic MACC?

A dynamic MACC (Marginal Abatement Cost Curve) evolves as conditions change — cheaper options saturate, energy prices shift, carbon prices tighten, policy incentives step down, and project timelines move. Unlike static MACCs, dynamic MACCs account for policy stacking (45Q, CCUS ITC, ETS credits), delivery risk, and time-dependent economics to produce NPV and IRR outputs suitable for investment decisions.

What is the global status of CCUS in 2025?

As of 2025, approximately 50 megatonnes of CO2 per year of capture capacity is operating globally. The project pipeline has grown to approximately 430 Mt of projected capacity by 2030, with around 60% of projects at advanced development stages. Growth is concentrated in North America, Europe, and parts of Asia.

Who leads Climate Decode's CDR Series?

The CDR Series is led by Koorosh Behrang, Founder of Climate Decode. Koorosh is a compliance carbon markets specialist with 10+ years working across WCI, Ontario EPS, Alberta TIER, BC OBPS, Clean Fuel Regulations, RGGI, EU ETS, and the EU Shipping ETS. He leads the development of TerraNova, Climate Decode's compliance carbon markets platform.

How does CCS generate credits under Canada's Clean Fuel Regulations?

CCS projects can earn credits through two CFR pathways: CC1 reduction credits for capturing and geologically storing CO2 from industrial point sources, and CC2 credits when CCS is paired with bioenergy (BECCS) to achieve negative carbon intensity scores. CCS is also emerging as a key enabler for data center decarbonization, sustainable aviation fuel (SAF) mandates, and CORSIA compliance.

CDR Series — Carbon Capture, Removal & Deep Decarbonization | Climate Decode

Climate Decode's CDR Series covers carbon capture (CCUS), carbon dioxide removal (CDR), direct air capture (DAC/DACCS), BECCS, and the investment frameworks for deep decarbonization. Series articles include: (1) The Decarbonization Paradox — CCUS vs CDR as two fundamentally different tools, decarbonization sequencing ladder, global CCUS market status (~50 Mt operating, ~430 Mt projected by 2030), Canada's carbon management strategy, and TerraNova's role. (2) CCUS After the Cheap Wins — U.S. 45Q ($85/t geologic, $60/t utilization, $180/t DAC) vs Canada CCUS ITC (60% DAC, 50% other capture, 37.5% transport/storage), the decarbonization ladder ($0-30/t low-cost to $80-200+/t CCUS), and dynamic MACC-based investment case modelling. (3) Carbon Capture and Storage Under Canada's CFR — CC1 reduction credits, CC2 negative-CI removal credits, CCS role in powering data centers, SAF mandates, and CORSIA compliance under Canada's Clean Fuel Regulations. Powered by TerraNova — Climate Decode's compliance carbon markets platform. Written by Koorosh Behrang.

Topics and Keywords

CCUS, CDR, carbon capture, carbon removal, direct air capture, DAC, DACCS, BECCS, CCS, carbon capture and storage, decarbonization, industrial decarbonization, 45Q, Section 45Q, CCUS ITC, Canada CCUS Investment Tax Credit, Clean Fuel Regulations, CFR, CC1, CC2, negative carbon intensity, SAF, CORSIA, data centers, marginal abatement cost curve, MACC, dynamic MACC, abatement ladder, cost per tonne, geologic storage, EOR, cement capture, point-source capture, geological storage, MRV, transport hubs, storage hubs, IEA, net zero, carbon management, TerraNova, Canopy, Climate Decode, Koorosh Behrang.

Canopy • CDR Series

Carbon Capture, Removal & Deep Decarbonization

From CCUS and DAC to policy incentives and investment-grade abatement economics — the frameworks that make deep decarbonization financeable.

3 Articles

By Koorosh Behrang • Updated March 2026

Articles • Series Lead • TerraNova

Published Articles

Deep Decarbonization

CCUS • CDR

The Decarbonization Paradox: The Last 20% Is the Hardest

CCUS vs CDR — two tools for two different problems. Global CCUS market status, decarbonization sequencing, Canada's carbon management strategy, and TerraNova.

By Koorosh Behrang • March 2026 • 10 min read

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Investment Strategy

45Q • ITC

CCUS After the "Cheap Wins": How 45Q and the CCUS ITC Shape the Investment Case

The decarbonization ladder, CCUS cost economics, U.S. 45Q vs Canada's CCUS ITC, and dynamic MACC-based investment modelling with TerraNova.

By Koorosh Behrang • March 2026 • 8 min read

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CCS • Canada CFR

CC1 • CC2

Carbon Capture and Storage Under Canada's Clean Fuel Regulations

CC1 reduction credits, CC2 negative-CI removal credits, and the emerging role of CCS in powering data centers, SAF mandates, and CORSIA compliance.

By Koorosh Behrang • March 2026 • 15 min read

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Climate Decode's TerraNova platform turns policy incentives and carbon pricing into portfolio-grade decarbonization sequencing — from dynamic MACCs to finance-ready project economics.

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CDR Series Lead

Koorosh Behrang

Founder, Climate Decode

Koorosh leads Climate Decode's market intelligence platform, working at the intersection of carbon markets, industrial decarbonization, and corporate compliance strategy. The CDR Series explores how carbon capture and removal technologies fit into investable decarbonization roadmaps.

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TerraNova

Climate Decode's compliance carbon markets platform. Dynamic MACCs, policy-aware abatement economics, scenario stress testing, and finance-grade outputs — turning carbon policy into investable decarbonization roadmaps.

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climate-decode.com • Insights Hub • CFR Series

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CFR Series — Canada Clean Fuel Regulations

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Carbon Capture, Removal & Deep Decarbonization

The Decarbonization Paradox: The Last 20% Is the Hardest

CCUS After the "Cheap Wins": How 45Q and the CCUS ITC Shape the Investment Case

Carbon Capture and Storage Under Canada's Clean Fuel Regulations

Need a CCUS or CDR Investment Case?

Koorosh Behrang

TerraNova