Carbon Capture Finds New Footing as U.S. Endangerment Finding Falls

The repeal of the EPA's 2009 endangerment finding has sent ripples through the U.S. climate policy landscape, but the carbon capture and removal industry is charting a path forward. Rather than retreating, key players are leaning into market-driven momentum, bipartisan tax incentives, and private-sector commitments to keep carbon capture growth on track.

The endangerment finding, originally issued by the U.S. Environmental Protection Agency (EPA) during the Obama administration, classified greenhouse gas emissions as a public health threat under the Clean Air Act. President Trump revoked it in February 2026, eliminating the federal government's obligation to regulate emissions across vehicles, power plants, the oil and gas sector, and aircraft.

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What This Means for Carbon Dioxide Removal

For the U.S. carbon dioxide removal (CDR) sector, the repeal introduces fresh uncertainty into an already complex policy environment. Carbon180, a Washington-based nonprofit that has shaped federal CDR policy for years, was among the first to publicly respond.

Noah McQueen, PhD, Director of Science and Innovation at Carbon180, explained that CDR is meant to address emissions that remain after deep reductions, not act as a substitute for regulation. He stressed that the endangerment finding provided the framework that made CDR credible within a regulated system.

"We will act on opportunities where new forms of public procurement, tax incentives, and R&D support expand to fill this gap. And we will build back towards a strong federal anchor to ensure long-term confidence, impactful investment, and accountability for purchases."

Noah McQueen, PhD, Director of Science and Innovation, Carbon180

McQueen also pointed out that without the finding, the line between residual emissions and avoidable ones gets blurred, making it harder to separate responsible carbon removal from what he called "offsetting-by-another-name." Still, he made clear that CDR is not leaving the climate conversation, and Carbon180 will keep pushing for cohesive federal carbon removal policy.

Carbon Capture's Market Drivers Remain Intact

While the regulatory anchor may have shifted, the commercial case for carbon capture is still strong. The industry is backed by several durable pillars:

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ExxonMobil Doubles Down on CCUS Expansion

Among the companies pressing forward is ExxonMobil, which has been aggressively commercializing its CCUS network through agreements with CF Industries, Marubeni, and Calpine. The company is also positioning its carbon capture infrastructure to power the data center boom, exploring how natural gas paired with CCS can deliver low-carbon electricity at scale.

"We're the only company in the world today with an end-to-end system capable of capturing, transporting and storing carbon emissions. We've contracted more CO2 for transport and storage than any other company by far."

Darren Woods, Chairman and CEO, ExxonMobil

ExxonMobil's $4.9 billion acquisition of Denbury gave it control of the largest CO₂ pipeline network in the U.S., spanning over 1,300 miles. The company now has six CCS customers and roughly 9 million metric tons per year of CO₂ under contract, with three new projects expected to come online in 2026 across Texas and Louisiana.

The Road From Here

Environmental groups have signaled plans to challenge the repeal in court, and legal experts expect a drawn-out process involving state and nonprofit litigation. Jeff Holmstead, former assistant administrator of the EPA for Air and Radiation, noted that additional rulemaking would still be required to fully unwind existing carbon standards for power plants, adding time and complexity to the deregulation effort.

For the carbon removal and capture industry, the path forward involves a mix of state-level action, market demand, and the continued strength of the 45Q tax credit. The federal regulatory picture may look different, but the commercial and technological momentum behind CCUS remains firmly in motion. The companies building this infrastructure are not waiting for regulatory certainty. They are creating it themselves.