Canada Launches $10M Carbon Removal Credit Buy
The federal government will buy C$10 million in carbon removal credits across five technology streams to offset its own emissions.
Updated on Nov. 11, 2026 in Electric Vehicles
The Canadian government is launching a procurement for C$10 million ($7 million) in carbon removal credits intended to offset federal greenhouse gas emissions. The purchase could include up to 25 competitive standing offers overseen by the federal Treasury Board Secretariat.
Why it matters
The government hopes the procurement will support the development of carbon removal projects in Canada. It is also part of Canada's plan to use CO2 removal to balance remaining operational emissions as it works toward its net-zero target.
The procurement totals C$10 million across five technology streams, including direct air capture, bioenergy with carbon storage and enhanced carbon mineralization, purchased over a five-year period. The source does not indicate how the funds will be divided among the streams or which providers will be selected.
The players
Treasury Board Secretariat
The federal agency of the Government of Canada that oversees federal spending, management and procurement, including this carbon removal purchase.
The details
The government said it would buy the credits over five years, first announcing its intent in 2024. Competitive standing offers for carbon removal services are to be announced in the coming days.
Timeline
2024: The government first announced its intent to buy carbon removal credits.
In the coming days: Competitive standing offers for carbon removal services are expected to be announced.
2025: Target to cut scope 1 and 2 emissions by 40%.
2050: Target to reduce emissions by at least 90% from 2005 levels.
Roadmap
The purchase fits into Canada's federal target of cutting scope 1 and scope 2 emissions by at least 90% from 2005 levels by 2050. It positions carbon removal as a tool for balancing the emissions that remain after direct reductions are made.
The procurement is aimed at federal emissions rather than household purchases, so it has no direct effect on car buyers or drivers. Its effects would reach consumers only indirectly through the development of carbon removal projects in Canada.
The takeaway
Governments are beginning to pay directly for carbon removal to cover emissions they cannot yet eliminate, a step that could shape the market for these technologies. Readers following Canada's climate goals can track how the standing offers are awarded over the coming months.
What happens next
Competitive standing offers for carbon removal services are to be announced in the coming days.
Further reading
For broader context on Canada's clean energy and emissions policy, explore Electric Vehicles coverage.
