By: Nigel Bankes
PDF Version: Carbon Security or Carbon Whimsy?
Document commented on: Alberta’s Proposed Technology Innovation and Emissions Reduction System: Discussion Document, July 2019
This Discussion Document contains the Government of Alberta’s proposal to replace the current Carbon Competitiveness Incentive Regulation, Alta Reg 255/2017, (CCIR) with a Technology Innovation and Emissions Reduction (TIER) system for Alberta’s large final emitters (LFEs). If promulgated, the TIER system will effectively return us to the model of the Specified Gas Emitters Regulation, Alta Reg 139/2007 (SGER) first introduced by the Stelmach government in 2007, and then repealed and replaced by the Notley government’s CCIR effective January 1, 2018. Both the SGER and the CCIR are greenhouse gas (GHG) mitigation measures; both are emissions intensity schemes rather than cap and trade schemes; both require increased carbon efficiency over time (i.e. reduced carbon emissions per unit of output); both schemes offer covered entities access to flexibility mechanisms (including payments into a fund) to allow them to meet their targets in the most efficient manner; both impose a liability only on excess emissions over the target rather than on all emissions but still provide a pricing signal; both are designed to protect trade exposed sectors; and both focus on LFEs.