Carbon capture faces uncertainty under Trump policies
Billions invested in carbon capture tech face challenges as Trump policies reshape climate priorities. Industry adapts amid regulatory shifts.
Billions have been invested in carbon capture technologies to combat climate change, but the industry now faces a shifting landscape under the Trump administration. While projects like Climeworks’ Iceland plant and Occidental’s Texas facility advance, policy changes threaten to slow momentum.
Direct air capture (DAC) projects, once hailed as climate solutions, are grappling with scalability challenges. Climeworks’ Iceland plant captured only a fraction of its target CO2 in its first 10 months, highlighting technical hurdles. Yet proponents argue such technologies need time to mature.
Meanwhile, Occidental received federal approval to sequester CO2 from its Texas DAC facility, framing it as both an emissions solution and a tool for oil extraction. Critics, however, question whether such projects perpetuate fossil fuel reliance rather than enable a clean energy transition.
The Trump administration has paused funding for key programs like the $1.8 billion DAC hubs initiative and CarbonSAFE grants, creating uncertainty for developers. While bipartisan-backed incentives like the 45Q tax credit remain intact, broader climate policy rollbacks loom.
Industry leaders are rebranding carbon capture as an economic driver rather than a climate fix. "We’re a job-creating engine, not just an environmental solution," said Lance Scott of Carbon Capture Machine, reflecting efforts to align with Trump’s energy dominance agenda.
As federal support wavers, states like Louisiana and North Dakota are taking the lead. Louisiana’s Project Cypress, a major DAC hub, continues despite delays, aided by local political backing. Internationally, the U.S. risks ceding ground to Europe and China, which are accelerating carbon tech investments.
Carbon capture’s fate now hinges on balancing economic appeal with climate imperatives. With the industry at a crossroads, 2025 will test whether it can thrive under a policy framework prioritizing energy security over emissions reduction.
