Instead, Alberta should modernize its system to create a robust, credible market that attracts investment and improves competitiveness.
OTTAWA — Dale Beugin, Executive Vice President at the Canadian Climate Institute, made the following statement in response to the Government of Alberta’s announced changes to its Technology, Innovation and Emission Reduction Regulation (TIER):
“Today Alberta announced changes that would weaken the province’s long-standing industrial emissions trading market. The changes proposed exacerbate existing challenges with the policy rather than addressing them. They will create more uncertainty for business and make building low-carbon projects across the province harder. Alberta’s carbon market needs updates, but today’s changes move it in the wrong direction.
“Large-emitter trading systems like TIER are Canada’s most important climate policy. They are designed to protect competitiveness, attract investment, and drive emissions reductions. Modernizing TIER, however, is critical for delivering on these goals. Without improvements, excess credit supply—and the low credit prices that result—will dilute incentives for investment.
“Alberta’s proposal for direct investment compliance risks compromising the credibility of TIER. It risks double-crediting companies for investments they may have made anyway and crediting activities that may not reduce emissions at all, while also increasing the oversupply of credits in the system.
“At the same time, allowing smaller emitters to opt out of the policy further reduces their incentives to reduce emissions.
“These changes add up to two things: less long-term certainty for businesses and investors, and more harmful emissions going into our atmosphere—contributing to global emissions fueling more wildfires, droughts, and extreme weather endangering Albertan communities.
“For more than 15 years, Alberta’s emissions markets have helped to limit greenhouse gas emissions from heavy industry, while creating incentives for companies to invest in low-carbon technologies and reduce emissions from their operations. TIER is already well positioned to protect the competitiveness of Albertan industry, helping address U.S. tariff-induced economic pressures.
“A functioning industrial carbon market is critical for Alberta’s credibility in attracting investment and in claiming a low-carbon advantage in international markets. Instead of the shifts announced today, Alberta should prioritize bringing much-needed transparency, liquidity, certainty, and credibility to its carbon market through sensible approaches to policy modernization. Modernizing TIER will improve long-term market function by maintaining cost predictability while preserving strong incentives for emissions reductions and clean technology investment.”
RESOURCES
CONTACTS
Krystal Northey (Mountain Time)
Public Affairs Lead
Canadian Climate Institute
(226) 212-9883
Claudine Brulé (Eastern Time)
Lead, Communications and External Affairs
Canadian Climate Institute
(226) 212-9883
About the Canadian Climate Institute
The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate.
