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ARTICLE · 25 JANUARY 2023

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TIER Amendments Provide Price Certainty And Incentivize Carbon Capture And Storage

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On January 1, 2023, significant amendments to Alberta's Technology, Innovation and Emissions Reduction Regulation (TIER) came into effect.

CanadaEnergy and Natural Resources

On January 1, 2023, significant amendments to Alberta's Technology, Innovation and Emissions Reduction Regulation (TIER) came into effect. The amendments align TIER with the federal Greenhouse Gas Pollution Pricing Act (GGPPA), facilitate TIER participation by the proponents of carbon capture and storage (CCS) projects, provide price certainty and seek to address a potential surplus of provincial carbon credits in the coming years.

INCREASE IN TIER FUND CREDIT COST TO ALIGN WITH GGPPA

Although not publicly accessible on the Alberta Environment and Protected Areas (AEPA) website until mid-January 2023, Alberta's Minister of Environment and Protected Areas issued Ministerial Order 62/2022 on December 21, 2022. The Ministerial Order confirms the cost to obtain TIER Fund credits will increase in C$15 annual increments from C$65 per credit in 2023 to C$170 per credit in 2030. This change aligns TIER with the carbon pricing requirements established by the federal GGPPA.

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