TIER is an improved way to manage emissions from large industries like oil and gas, which account for more than half of Alberta’s total emissions. Under the proposed plan, large emitters that produce more than the allowable limit of carbon dioxide would be required to pay into a clean technology fund or purchase offset credits starting Jan. 1, 2020.
Environment and Parks Minister Jason Nixon, Energy Minister Sonya Savage and Agriculture and Forestry Minister Devin Dreeshen are meeting with about 150 stakeholders to explore the program design for TIER – a system that will help energy-intensive facilities innovate and stay competitive by investing in clean technology that will significantly reduce greenhouse gas emissions.
“TIER is a realistic and effective approach to addressing climate change that will reduce emissions and reassure investors. Hearing stakeholder perspectives as we design TIER will make sure the program meets the needs of Alberta’s environment and economy. This system is the centrepiece of our government’s new provincial climate strategy, to be released this fall, which will focus on innovative and practical solutions instead of punishing Albertans with a punitive tax on heating their homes and driving their kids to soccer.”
Under the proposed system, facilities that emit more than 100,000 tonnes of carbon dioxide will have to reduce their emissions intensity by 10 per cent compared to their average emissions between 2016 and 2018. To do that, facilities can reduce their emissions, or:
- Reduce their emissions.
- Use credits from facilities that have met and exceeded their emissions targets.
- Use emission offsets from organizations that are not regulated by TIER, but have voluntarily reduced their emissions.
- Pay into the TIER Fund, which will be used for new and cleaner Alberta-based technologies that reduce emissions, like research and investment in carbon capture, utilization and storage, and improved oilsands extraction technology.
“Innovation and performance improvements are happening across Alberta’s industrial sectors. The proposed TIER system will recognize and accelerate this innovation, supporting investment and jobs. We’re helping Alberta’s industries do what they do best – find better ways to do business.”
TIER will also require electricity facilities to meet a good-as-best-gas standard, where their emissions are equal to the cleanest natural gas-fired generation plant.
“Alberta’s farmers, ranchers and foresters are some of the most entrepreneurial business people. TIER will focus on helping them stay competitive with cutting-edge new technologies. Alberta is open for business, and TIER is just one more way Alberta’s government is sending that message.”
Albertans and stakeholders are invited to read the TIER discussion document and provide feedback through Alberta.ca. The submission deadline for comments is Aug. 2, 2019.
“We look forward to working with the government to deliver a carbon pricing framework that maintains the investment competitiveness of emissions-intensive trade-exposed industries. Alberta’s chemistry industry is on a growth trajectory that could see $25 billion in new investments in addition to the over $12 billion already committed. While these investments leverage Alberta’s abundant, low-carbon feedstock, they are also critical in Alberta’s and Canada’s transition to a low-carbon future.”
“The competitiveness of Alberta’s oil and natural gas industry depends on having a reliable and effective regulatory system. We are pleased the government is updating Alberta’s approach to industrial emitters to ensure emissions are reduced in an efficient manner that fosters both innovation and competitiveness.”
- Minister roundtables will be held over three days with representatives from the oil and gas, electricity, chemicals, fertilizers, minerals and metals, forest products, coal mines, landfills, food processors, agro-industry and distilling sectors.
- Stakeholder engagement will continue throughout July, including workshop sessions, webinars and one-on-one meetings.
- TIER will replace the current Carbon Competitiveness Incentive Regulation on Jan. 1, 2020.