Canada targets reducing the nation's carbon emissions by 40-45 percent by 2030 compared to 2005 levels. In order to succeed, the government will bank on carbon capture and sequestration (CCS) technology.

Nearly a dozen oil and gas companies are already said to be interested in the plans to build CCS facilities, reports Reuters.

The global oil industry is banking big on utilization and storage of CO₂ becoming a global multi-billion-dollar business involving both public and private investments.

To further encourage private investments in CCS projects, Canada expects to raise the price of CO₂ to CAD 170 (EUR 114.35) per tonne in 2030, up from CAD 140.

The location of the new CCS hubs hasn't been decided, and there is no word on what they will cost, either.

Canada already has four existing CCS projects, which combined capture an annual 4 million tonnes of CO₂, corresponding to 15 percent of the world's total carbon capturing per year.

Canada will hold a federal election on Sept. 20, with climate slated to play a major role.

Current Canadian Prime Minister Justin Trudeau has pledged to cut the oil and gas sector's greenhouse gas emissions based on five-year targets starting in 2025.

However, some in the national government still doubt the project.

"It is not yet clear whether this elevated pricing signal, combined with other federal policies yet to be implemented, such as the CFR and the investment tax credit announced, will be sufficient to drive widespread CCUS adoption," reads the federal strategy.

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