Carbon Competitiveness Incentives protect jobs
Alberta companies that compete in global markets will benefit from a new emissions reduction framework for large industrial emitters.
Carbon Competitiveness Incentives (CCIs) will attract investment in clean technology, protect and create jobs and diversify Alberta's economy while reducing carbon pollution. The made-in-Alberta plan was designed in consultation with industry and replaces the Specified Gas Emitters Regulation on Jan. 1, 2018.
“To expand the modern economy and create good jobs for Albertans, we need to lead in the push to reduce the carbon footprint of our export products so they can better compete globally. That’s what these improved rules will do.”
The CCIs are the product of extensive consultation with industry and will be phased in over three years. Companies will have further incentives to invest in innovation and technology to create jobs and reduce emissions through a $1.4-billion innovation package released earlier this week, which includes $440 million for oil sands innovation alone.
“For Alberta to prosper and our economy to grow, we must recognize that the global economy is changing and that climate change is real. That means a smaller carbon footprint and helping our companies compete around the world. That’s what this improved framework will do.”
The new incentives are a cornerstone of the Leach Report, which helped shape the Climate Leadership Plan. That report recommended that emission targets be set on sector-specific outputs.
CCIs are expected to cut emissions by 20 million tonnes by 2020, and 50 million tonnes by 2030 – about the same as total emissions from Manitoba, Nova Scotia and New Brunswick combined.
Stakeholders welcomed the improved rules:
“TransAlta is pleased that the Alberta government is recognizing the value of existing and new renewable energy, including hydro. Hydro has been an integral part of the Alberta power system for decades and will continue to be a critical component as we reduce emissions and transition to clean power generation.”
“The Canadian Wind Energy Association (CanWEA) commends the Alberta government for its continued leadership in addressing climate change through the implementation of its Climate Leadership Plan. An important component of that plan is the output-based allocation system that sets clear targets for the greenhouse gas emissions intensity of electricity produced for the Alberta grid and provides a strong market signal that will accelerate Alberta’s efforts to reduce greenhouse gas-emitting electricity generation and shift to zero-carbon-emitting wind energy and other renewable energy options. Increased reliance on cost-competitive wind energy to meet Alberta’s electricity needs will be an important element of Alberta’s transition to a greener and more diversified electricity supply and a more sustainable growth path.”
“From the cement industry’s perspective, we applaud today’s framework – it demonstrates that the Alberta government has a comprehensive understanding of the pressures that EITE industries face to remain competitive in the global market while fighting climate change. This has been the most collaborative stakeholder consultation exercise I have ever seen.”