Canada's Trudeau urges Alberta to contribute to carbon-capture incentives

OTTAWA (Reuters) - Canadian Prime Minister Justin Trudeau on Friday urged the government of the main oil-producing province of Alberta to use its budget surplus to help bolster tax credits meant to help scale up carbon capture and storage and reduce emissions.

After the United States passed the Inflation Reduction Act last year, which included massive tax credits to develop carbon capture, utilization and storage (CCUS) there, the Canadian oil and gas industry has been seeking an increase to what was promised in the April federal budget.

"We've seen for a while Alberta hesitating around investing in anything related to climate change. But CCUS is one of those tangible things," Trudeau told Reuters in an interview.

"I think there's a role for provinces with surpluses, with the capacity to be investing in their future and their workers future," he said.

The comments follow a Reuters exclusive from October that cited sources saying the federal government was at odds with Alberta's government over who should pay to bolster tax credits for carbon capture.

(Reporting by Steve Scherer; Editing by Alistair Bell)

By Steve Scherer