Alberta Increases Cost Of TIER Fund Credits To C$50

On December 1, 2021, the Alberta Minister of Environment and Parks issued Ministerial Order 87/2021 confirming the cost to obtain Technology, Innovation and Emissions Reduction Fund (Fund) credits under the Technology, Innovation and Emissions Reduction Regulation (TIER) will increase from C$40 per credit in 2021 to C$50 per credit in 2022. This price increase aligns with the carbon pricing requirements established by the federal Greenhouse Gas Pollution Pricing Act (GGPPA).

THE GGPPA

The GGPPA acts as a federal backstop that applies to provinces lacking equivalent carbon pricing requirements. Part 1 of the GGPPA imposes a fuel charge on fossil fuels and combustible waste that emit greenhouse gases (Fuel Charge). Part 2 of the GGPPA establishes an output-based pricing system (OBPS) for large industrial emitters with greenhouse gas emissions in excess of annual limits. Both the Fuel Charge and the OBPS apply in a province unless a provincial regime has been deemed