Industry and local communities can experience a fresh surge of vitality, thanks to DAC.

Canadian leaders have announced an extension of the full value of their carbon capture tax credit to 2035, aiming to support a broad range of carbon removal innovation. This move comes as part of a global shift towards Direct Air Capture (DAC) technology, a quiet revolution that is quietly taking shape.

The strengthened 45Q tax credit in the United States serves as a powerful foundation, a clear signal that the current administration recognizes the opportunity for DAC. The carbon removal market is expected to grow to as much as $100 billion a year by 2035, making it an attractive proposition for countries looking to reduce their carbon footprint.

Global competitors like Canada, China, and the European Union are investing heavily in carbon removal technologies, including DAC. The EU is currently assessing DAC and other approaches to see how they can reach their goals. Canada, notably, is positioned as a leader in the emerging global DAC market. Several European countries are developing carbon removal roadmaps and strategies to promote DAC technologies.

The United States, with its expertise, industrial capacity, and skilled workforce, has the potential to dominate the emerging DAC sector. However, it needs coordinated efforts between industry, government, and communities, and federal policies that prioritize domestic manufacturing, create long-term procurement pathways, and support early DAC deployment in energy communities.

One area where DAC could make a significant impact is in the manufacturing sector. The share of manufacturing jobs in the U.S. has dropped from 35% in the 1950s to 9.4% currently. Automotive plants closing around North America could be retooled to produce DAC systems. Each DAC facility requires roles such as steel workers, engineers, technicians, operators, construction crews for building, and maintenance teams for operation.

Research indicates that an initial 500-kiloton DAC project generates between 540 and 1,370 average annual jobs over its five-year construction period. This could result in the creation of 130,000 American jobs in the coming decades.

DAC systems can integrate with data centers to recycle waste heat, reduce emissions, and generate clean water. They can also be combined with existing ventilation systems in buildings for low-cost carbon management. DAC can even utilize waste heat to power the DAC regeneration process, improving overall energy efficiency.

However, the success of DAC is not without challenges. Production capacity of critical components has moved overseas, jeopardizing U.S. economic security. The closure of Moffat County, Colorado's Craig Station coal-fired power plant and nearby mines could result in the loss of over 400 jobs and nearly half of its property tax revenue.

The carbon management roadmap in Colorado has the potential to create an average of 2,480 project jobs and 1,575 ongoing operation jobs across the state over 15 years. It identifies DAC and other carbon management technologies as pillars of its energy future.

As the world grapples with climate change, DAC offers a promising solution. With the right policies and investments, it could help reduce carbon emissions, create jobs, and stimulate economic growth. The race is on, and it's clear that the United States, Canada, and the European Union are all vying for a leading position in this new industrial revolution.

Industry and local communities can experience a fresh surge of vitality, thanks to DAC.