Canada Needs $2.2B to Close Carbon Removal Gap
Carbon Removal Canada's Tracking the Tonnes 2026 report finds the country's carbon dioxide removal sector falls short of its 2030 target.
Updated on Nov. 3, 2026 in Environmental
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Carbon Removal Canada published its Tracking the Tonnes 2026 report, which finds 16 operating carbon dioxide removal projects across six provinces with capacity to remove 98,250 tonnes of CO2 a year. Closing the sector's capacity gap would require about $2.2 billion in investment.
Why it matters
Canada needs two million tonnes of CO2 removal capacity by 2030 to stay on track with its climate ambitions, and the report identifies capacity, funding and an uneven policy landscape as the three critical gaps. The report also notes that peers including the European Union, Germany and the United Kingdom are moving faster to build long-term demand.
The report tracks 16 operating projects and 38 pipeline projects representing nearly 12 million tonnes of annual capacity, with an estimated $9 billion in investment. Its funding estimate of $2.2 billion is less than half a per cent of the $500 billion committed by Canadian financial institutions to critical sectors, and how that gap would be funded remains unaddressed.
The players
Carbon Removal Canada
Carbon Removal Canada is a non-profit organization that advocates for and tracks the development of carbon dioxide removal technologies and policy in Canada.
The details
The report compares current operating capacity with the two million tonnes of annual removal needed by 2030 to identify the shortfall. Pipeline projects are concentrated in the same six provinces where the 16 operating projects are located, and the report frames the sector's progress against peer jurisdictions.
Timeline
2026: Carbon Removal Canada publishes the Tracking the Tonnes 2026 report.
2030: Canada's target date for reaching two million tonnes of CO2 removal capacity.
Big Picture
The 2026 edition continues the Tracking the Tonnes series by updating Canada's operating and pipeline capacity figures and quantifying the investment gap. It positions Canada behind the European Union, Germany and the United Kingdom in building long-term demand for carbon dioxide removal.
For Canadian residents, the report signals that carbon dioxide removal projects in their province may expand as investment grows, but the funding and policy gaps mean timelines remain uncertain. Readers interested in the sector can follow how investment and policy decisions develop toward the 2030 target.
The takeaway
Canada's carbon dioxide removal sector needs roughly $2.2 billion to close its capacity gap, a sum small relative to existing financial sector commitments. Closing that gap depends on funding and policy choices made before the 2030 target.
Further reading
For more on the policy landscape behind these projects, see Environmental coverage across Canada.
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Should Canada spend more public money to speed up carbon removal projects?
