Canada Prepares to Award Carbon Removal Standing Offers Under C$10 Million Federal Procurement

The Government of Canada is getting ready to name the suppliers in its first dedicated carbon removal procurement. Officials say a set of competitive standing offers will be announced in the coming days.

The update came on Wednesday at the UN COP31 climate summit in Antalya, Turkey. It marks the next big step for a C$10 million ($7 million) program that will buy durable carbon removal credits from Canadian projects.

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Up to 25 Standing Offers Across Five Technology Streams

Speaking at a COP31 event, Jackie Mercer said the launch could include up to 25 competitive standing offers. Mercer is program manager for Canada's GHG offset system at Environment and Climate Change Canada.

The offers will cover five technology streams. These are direct air capture with permanent storage, bioenergy with carbon capture and storage, biochar, other biomass carbon removal and storage, and enhanced mineralization.

"It's a really important signal that the government is doing early action," said Jackie Mercer, Program Manager, Environment and Climate Change Canada, as reported by Argus Media.

The Treasury Board of Canada Secretariat will oversee the procurement. Ottawa hopes the program will help carbon removal projects get built and scale up at home.

How the Procurement Took Shape

Canada first committed to buying carbon dioxide removal services in October 2024. That pledge set aside C$10 million from the Low-carbon Fuel Procurement Program for removal purchases through 2030 to 2031.

A request for information followed in February 2025. Then on March 12, 2026, the government issued its Request for Standing Offer, which closed to bids on May 11, 2026.

Eligible projects had to be located in Canada. They also needed to supply at least 500 tonnes of removal, with durability of 1,000 years or more, between June 2026 and March 2029.

The credits will offset residual emissions from the government's National Safety and Security Fleet. Standing offers will remain valid until March 31, 2029.

Supporting Federal Net-Zero Targets

The program falls under the Greening Government Strategy. It commits Ottawa to cutting operational emissions as close to zero as possible, then balancing the rest with carbon removal.

Canada aims to cut its scope 1 and scope 2 emissions by at least 90% from 2005 levels by 2050. Carbon removal will cover what remains.

Federal leaders see removals as central to the country's broader net-zero economy goal. "Carbon dioxide removal will be essential to reaching that goal," said Julie Dabrusin, Minister of the Environment, Climate Change and Nature, in March 2026.

A Growing Domestic Market

The awards land as Canada's carbon removal sector keeps building. Carbon Removal Canada reports that the country had 16 operating carbon removal projects across six provinces as of November 1, 2026.

Its Tracking the Tonnes 2026 report recommends growing the C$10 million standing offer into a larger, multi-year program. The standing offer structure already sets the stage for that, since pre-qualified suppliers can be called on again in future rounds.

About the Treasury Board of Canada Secretariat

The Treasury Board of Canada Secretariat houses the Centre for Greening Government, which leads the Greening Government Strategy. The Centre runs the Low-carbon Fuel Procurement Program, an eight-year, C$134.9 million initiative to reduce emissions from essential federal air and marine operations. Budget 2024 expanded the program to include carbon dioxide removal services.