This fall, Alberta’s government will introduce updates to the TIER system that would empower Alberta industries to invest in on-site emissions reduction technology that works for their specific businesses. Making Alberta’s highly successful TIER system even more effective and flexible will make industries more globally competitive while maintaining Alberta’s leadership in emissions reductions.
“TIER has always been about Alberta leading the way – proving to the world that it’s possible to increase energy production, grow the economy and lower emissions at the same time. These amendments build on that success by giving industry the certainty and flexibility they need to invest right here at home. We know this work is not finished. We will continue to press the federal government to match Alberta’s leadership with realistic policies and timelines so that together we can keep building an economy that is strong and ready for the future.”
“We are committed to ensuring our industry remains competitive and can once again bring in the capital investment needed to deliver safe, affordable and reliable energy to Canadians and the rest of the world. Enabling them to reinvest their dollars into their own facilities will be good for the environment while growing our economy and creating jobs.”
“TIER has played a critical role in helping Alberta energy be the most responsibly produced energy in the world. These changes will further allow our major energy companies to increase production and finance new world-leading emission reduction efforts consistent with Alberta’s Emissions Reduction and Energy Development Plan.”
Proposed updates to the TIER system include:
- Recognizing on-site emissions reduction investments as a new way for industry to comply with the TIER system in addition to the current options available, which include paying into the TIER fund or buying credits. This would reward companies for investing directly in emissions reduction technology that encourages innovation, supports local jobs and reduces emissions.
- Allowing smaller facilities that currently participate in the TIER system to leave or opt out for 2025 to reduce costs and red tape. Smaller facilities below the regulatory emissions threshold can face disproportionate compliance costs under the TIER system, which is mainly designed for large facilities. This change would help smaller industries save money and redirect resources into emissions reduction investments or other operational improvements for more cost savings. It offers flexibility, especially for small manufacturers and rural operations, which protects jobs across Alberta.
These changes will position Alberta, once again, as a world leader ready to meet the challenges and realities of shifting global markets, increased competition and trade uncertainty.
“We are pleased to see the Government of Alberta is taking steps to improve competitiveness of climate policy. Today’s announcement recognizes industry concerns around competitiveness and signals that the province is moving forward to support emissions reduction in a way that helps companies reduce emissions, compete for investment, and create jobs for Albertans. EPAC believes provinces are best positioned to lead on climate policy, and we look forward to continued work with Alberta.”
“Pathways Alliance appreciates the Government of Alberta’s efforts to support the oil sands industry and protect jobs. Direct investment through the TIER system is expected to encourage continued investment in emission reduction technologies, and advance innovative infrastructure. The oil sands industry looks forward to ongoing work with governments to strengthen global competitiveness and attract investment.”
Alberta’s economy is growing and emissions are declining thanks to the province’s common-sense approach. Alberta’s government will continue to work with industry to protect jobs, strengthen competitiveness and maintain Alberta’s position as the destination of choice for global investment.
Quick facts
- Alberta’s TIER system was established in 2007 and was the first of its kind in North America.
- Currently the TIER system includes about 60 per cent of the province’s total emissions, helping Alberta’s industrial facilities find innovative ways to reduce emissions and invest in technology to stay competitive, save money and create jobs.
- The TIER Regulation requires any facility that emits 100,000 tonnes or more of emissions in a year to meet annual emissions reductions using either a facility-specific or a sector benchmark approach.
- Under the current system, regulated facilities can comply using credits (carbon offsets, emission performance credits or sequestration tonnes) or pay into the TIER fund at $95 per tonne of emissions.
- Sectors regulated under the TIER system include oil and gas, oil sands mining, electricity, forestry, chemicals, fertilizers, minerals, food processing and waste.
- Since 2019, Alberta has invested $1.6 billion from the TIER fund into geothermal, hydrogen, energy storage, methane reduction, carbon capture and other technology projects, reducing approximately 70 million tonnes of emissions by 2030 and supporting about 21,000 jobs across the province.
Related information
- Alberta's greenhouse gas emissions reduction performance
- Technology Innovation and Emissions Reduction System
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