· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on Calgary Herald or enjoy below:
🗞️ Driving the news: Alberta has announced changes to its industrial carbon pricing system, allowing large emitters to meet up to 90% of their compliance obligations by directly investing in on-site emissions-reducing infrastructure
• Premier Danielle Smith likened the change to a “mandatory minimum spend,” offering industries an alternative to purchasing carbon credits or paying into a provincial fund under the Technology Innovation and Emissions Reduction (TIER) Regulation
🔭 The context: TIER is Alberta’s key emissions trading and pricing mechanism, applying to heavy-emitting sectors such as oil and gas, cement, and electricity
• Previously, companies that exceeded emissions limits had to either buy credits from low emitters or contribute to a government-managed fund
• The revised system enables self-directed investment in projects such as carbon capture and storage, exemplified by the proposed Pathways Alliance pipeline — but raises concerns about transparency and market integrity
🌍 Why it matters for the planet: Shifting compliance toward internal investments could incentivise decarbonisation at the facility level, but may weaken the carbon credit market by reducing demand and potentially enabling “double counting” of emissions reductions
• If poorly regulated, such flexibility may dilute emissions accountability and hinder the emergence of a credible carbon market — both of which are vital for effective, market-based climate action
⏭️ What's next: Facilities will have an eight-year window to complete qualifying investments under a forthcoming list of approved projects, though the government has yet to disclose what qualifies
• Critics, including the Pembina Institute and Alberta’s opposition NDP, have flagged the risk of vague criteria, limited consultation, and undermining existing institutions like Emissions Reduction Alberta
• Clear standards, independent verification, and emissions accountability will be critical to ensuring actual climate benefits
💬 One quote: “Companies will be able to avoid paying a compliance cost at the point of investment in technologies, but then also generate a carbon credit when their emissions start to be reduced.” — Chris Severson-Baker, Executive Director, Pembina Institute
📈 One stat: Up to 90% of a facility’s emissions compliance obligations under TIER can now be met through on-site investment rather than carbon credit purchases or fund contributions
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