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ARTICLE · 10 DECEMBER 2019

Federal Government Accepts Alberta's New Carbon Pricing Program

McLennan Ross LLP
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Today, the federal government announced that it has accepted Alberta's new Technology Innovation and Emissions Reduction ("TIER")

CanadaEnvironment
Sean Parker
Sean Parker
Anna Fitz
Anna Fitz
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Today, the federal government announced that it has accepted Alberta’s new Technology Innovation and Emissions Reduction ("TIER") Regulation as being compliant with the 2020 federal benchmark for carbon pricing systems. This means Alberta will be regulated by the provincial TIER program, rather than the federal program, for 2020. However, the TIER program will be subject to annual reviews to ensure it meets the rising federal benchmark ($40 per tonne in 2021 and $50 per tonne in 2022).

The federal program allows provinces and territories to develop their own carbon pricing systems. If these proposed systems meet the federal benchmark, as Alberta’s does, then the provincial system applies; otherwise, the federal program applies.

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