A scanning differential absorption lidar (DIAL) instrument for identification of carbon dioxide leaks at carbon sequestration sites has been developed and initial data has been collected at Montana State University. The laser transmitter uses two tunable discrete mode laser diodes operating in the continuous-wave mode with one locked to the online absorption wavelength and the other operating at the offline wavelength. Two in-line fiber optic switches are used to switch between online and offline operation. After the fiber optic switch, an acousto-optic modulator is used to generate a pulse train used to injection seed an erbium-doped fiber amplifier to produce eye-safe laser pulses with maximum pulse energies of 66 μJ, a pulse repetition frequency of 15 kHz, and an operating wavelength of 1.571 μm. The DIAL receiver uses a 28 cm diameter Schmidt-Cassegrain telescope to collect that backscattered light, which is then monitored using a photomultiplier tube module operating in the photon counting mode. The DIAL has measured carbon dioxide profiles from 1 to 2.5 km with 60 min temporal averaging. Comparisons of DIAL measurements with a Licor LI-820 gas analyzer point sensor have been made.