Carbon neutrality does not rely on a single lever

Quebec has committed to achieving carbon neutrality by 2050. For several years, this objective has translated into policies focused on reducing greenhouse gas emissions: electrification of transportation, energy efficiency, and cleaner fuels. These levers are essential and must continue to shape Quebec's climate action.

Published on March 2

Frédéric Lalonde, President and CEO of Hopper, co-founder and Chairman of the Board of Deep Sky
Alex Petre, President and CEO of Deep Sky

But reduction alone will not be enough; we also need to manage historical emissions through CO2 capture and storage.₂.
Even in a scenario where all reduction efforts are fully deployed, Quebec will still emit approximately 13 million tonnes of CO2₂ per year by 2045-2050, according to the most recent report from the Advisory Committee on Climate Change. These residual emissions come from sectors where complete decarbonization remains technically impossible in the medium term: heavy industry (cement plants, aluminum plants), agriculture (manure management, fertilizers), and air transport.

In a Quebec that will still emit a residual volume of carbon, achieving carbon neutrality requires the sustainable and verifiable removal of an equivalent amount of CO₂₂ of the atmosphere, year after year. In other words, emissions reduction must be accompanied by a clear strategy for the permanent sequestration of carbon.

A much-anticipated tool

Until now, Quebec's climate action had few tools to address this aspect of carbon removal. Bill 17 fills this gap by establishing a framework for the geological storage of CO₂₂, an essential component of any credible strategy for the permanent elimination of carbon.

Atmospheric carbon capture, whether through direct capture or capture at the source of emissions from the decomposition or combustion of organic matter, combined with geological storage, aims to remove CO₂₂ already present in the air, this approach involves burying it deep underground in rock formations. It is distinguished by its ability to precisely measure the volumes removed, ensure regulatory compliance, and guarantee storage over thousands of years. The technology relies on proven practices implemented with respect for local communities.
This is not a miracle solution, nor a substitute for emissions reduction. Rather, these engineering solutions are complementary, working in tandem with nature to manage the carbon that other levers cannot eliminate. To draw an analogy: when there is a flood, it is necessary to both shut off the water supply and pump out what is already there.

Quebec and Canadian expertise in development

The lack of a clear legislative framework has hitherto limited the development of these solutions in Quebec. Without defined rules, it was difficult to move from exploratory projects to regulated, transparent infrastructures deployed at the necessary scale.

Without such a framework, Quebec is also depriving itself of valuable federal funds to deploy these technologies. Indeed, the tax credit for carbon capture, use, and storage allows for the reimbursement of 37,5% to 60% of investments made. However, it is only available in provinces that have implemented the regulatory framework required to ensure that geological carbon storage is carried out safely and with respect for the human and natural environment.

Bill 17 is a game changer. By establishing the foundations of the necessary framework, it paves the way for the development of Quebec expertise in a field poised for global growth. This regulatory signal was eagerly awaited by industry players, including Deep Sky, Skyrenu, and Svante, which are developing carbon removal projects in Quebec and elsewhere in Canada, as well as by a growing ecosystem of businesses, researchers, and financial institutions mobilized around these solutions.

Quebec has concrete assets to achieve this: exceptional geological storage potential and hydroelectric power, essential for carbon capture to produce a real climate benefit. This framework allows action to be taken on a long-neglected aspect of climate action, while developing technical, scientific, and industrial expertise that meets a very real need.

An emerging economic opportunity

The global carbon removal market is experiencing rapid growth, driven by European and North American demand for permanent and verifiable solutions. In a context where climate claims are facing increasing legal and reputational scrutiny, companies are favoring jurisdictions that offer stable regulatory frameworks, transparent oversight, and long-term accountability mechanisms.

This framework positions Quebec to attract investment and develop an exportable industry, while also addressing its own climate needs.

A necessary framework for action

Bill 17 does not solve everything, but it provides a framework without which this part of the equation could not be seriously addressed.
It is now up to the elected representatives of all parties sitting in the National Assembly to study and adopt it swiftly, then for the government to ensure its rigorous implementation, for businesses to support the deployment of credible projects in the territory, and for financial institutions to provide the patient capital required for these structuring infrastructures.

By adopting this framework, Quebec enhances its climate toolkit and gives itself the means to act on its entire trajectory towards carbon neutrality.

Co-signatories: Sophie Forest, Managing Partner of Brightspark, Alain Lemieux, President and CEO of the Energy Transition Valley Innovation Zone, Claude Létourneau, President and CEO of Svante, Gabriel Vézina, Co-founder and President and CEO of Skyrenu, Isabelle Dessureault, President and CEO of the Chamber of Commerce of Metropolitan Montreal, Grégoire Baillargeon, President, BMO Financial Group, Quebec and member of the Board of Directors of Carbon Removal Canada, Michael Denham, Senior Executive Vice-President and Vice-Chairman of the Board, National Bank of Canada.