Cutting emissions and diversifying the economy

Alberta’s government is using up to $176 million from the Technology Innovation and Emissions Reduction (TIER) system and federal Low Carbon Economy Leadership Fund (LCELF) for 16 projects that will cut almost seven million tonnes of emissions by 2030. This is the same as eliminating emissions from the electricity used by 4.5 million homes.

Funding is being delivered through Emissions Reduction Alberta’s Shovel-Ready Challenge, and will support about 5,600 jobs while injecting $2 billion into Alberta’s economy. This is the largest investment announcement in ERA’s history.

“Alberta continues to show leadership by using technology in practical ways to reduce emissions and combat climate change. These investments will help us grow our economy and pave the way to an even brighter future for all Albertans by building on Alberta’s strong foundation as a responsible and innovative energy leader.”

Large operations across sectors in Alberta are benefiting from the funding, including oil and gas, chemicals and fertilizers, cement and concrete, forestry and agriculture, electricity and manufacturing.

“Shovel-Ready funding expands groundbreaking technologies that are helping industries cut emissions, employ more Albertans and grow our economy. The TIER program continues to demonstrate Alberta’s global leadership on innovation and technology, which are the key pathways to protecting our shared environment while getting Alberta’s economy back on track.”

Funding is supporting lower carbon industrial processes, cleaner oil and gas, and low-emitting electricity. Project examples include:

• Capital Power will use innovative technology to turn carbon dioxide emissions from its Genesee facility into valuable carbon nanotubes, preventing those emissions from entering the atmosphere.
• Canadian Pacific’s Hydrogen Locomotive Program will feature three diesel locomotives retrofitted to operate using low-carbon hydrogen. The only emissions these locomotives will produce is water vapour, showing the potential for nearly emissions-free freight rail transport.
• Calgary Aggregate Recycling, an Indigenous-owned concrete, asphalt and recycling company, is building Canada’s first soil reuse facility. Contaminated soil from construction sites will be processed into stone and sand products. This turns waste that would normally go to the landfill into valuable products, and the facility’s central Calgary location reduces emissions by shortening the distance required to transport the waste for disposal. 

Shovel-Ready Challenge projects are supported by $126 million from the TIER system and $50 million from the LCELF. The term “shovel-ready” means projects are at a mature stage of development, with the potential to create jobs and cut emissions quickly.

“With Government of Alberta funding through ERA and innovation driven by industry, together, we can become leaders in environmental sustainability. Shovel-Ready Challenge funding is critical to implementing leading-edge technologies that will facilitate the transformation to a low-carbon future.”

“These investments are unlocking innovation and mobilizing private spending to create economic opportunities and improve environmental performance. They build on Alberta’s strengths across sectors and turn emission reduction ambitions into action.”

“We sincerely appreciate the Government of Alberta and ERA’s belief in our work and our people. As a sustainably driven organization, we share their goal of reducing greenhouse gas emissions through advanced technology. CP will combine the grant with our own funds to expand our research and development of real-world hydrogen technology in Alberta.”

“Thanks to the funding and support of the Government of Alberta and Emissions Reduction Alberta, Calgary will be home to Canada’s first Construction and Demolition Waste Recycling Plant. This technology will have an immediate impact on emissions reductions, boost the economy, and create a variety of jobs for Calgarians. Calgary Aggregate Recycling and our partners are committed to creating a sustainable future and we now have the support required to take meaningful steps towards that goal.”

TIER funding

The TIER system is funded by large industry that pay into the fund when they do not meet emissions targets. Alberta is using up to $750 million from the TIER fund for a range of programs that are reducing emissions, boosting the economy and getting Albertans back to work. This investment supports Alberta’s economic recovery from the COVID-19 pandemic and low oil prices.

Quick facts

• TIER helps industrial facilities, which account for more than 60 per cent of Alberta’s total emissions, find innovative ways to reduce emissions and invest in clean technology to save money and stay competitive.
• The TIER fund is being directed into programs that will bring investment to Alberta and continue to build on Alberta’s strong record on environmental, social and governance performance.
• ERA invests revenues from TIER to accelerate the development and deployment of innovative clean technology solutions.
• Since 2009, ERA has committed $821 million toward 221 projects worth $6.6 billion that are reducing emissions, creating competitive industries and leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of almost 43 million tonnes of emissions reductions by 2030.