BoA’s $205M carbon capture tax credit deal

Thur, 09/05/2024

by Ellie LeTu

Source: WSJ

• BoA’s investment in carbon capture

  • Bank of America invested $205M in an ethanol producer in North Dakota, which captures carbon emissions, in exchange for tax credits.

  • The investment benefits the oil and agriculture sectors.

  • Encourages further investments in carbon capture projects.

• Cimate change efforts

  • The carbon captured from industrial emissions is injected back into the ground to help reduce climate impact.

  • The 2022 climate law expanded tax credit eligibility to boost climate tech growth.

  • Government funding for carbon management has increased since 2023.

• Concerns

  • Political decisions on climate budgets could affect progress.

  • Delays in state approvals for carbon storage pipelines slow project development.