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Home Science & Environment Environmental Policies

STATEMENT: Killing TIER would be an economic mistake 

March 28, 2025
in Environmental Policies
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Statement: Alberta’s Budget 2025 Shows a Lack of Leadership that Threatens the Province’s Energy Industry Future
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Stephen Legault, Senior Manager for Alberta Energy Transition reaction to Alberta Premier Danielle Smith’s indication that her government will scrap The Alberta Technology Innovation and Emissions Reduction regulation 

Canmore | Traditional territories of the Treaty 7 Nations – In what appears to be a case of “follow the leader”, Alberta Premier Danielle Smith is mimicking federal Conservative leader Pierre Pollievere’s direction and proposing to scrap the province’s successful industrial carbon emissions reduction program. According to reporting in the Narwhal, Alberta is considering killing The Alberta Technology Innovation and Emissions Reduction regulation (TIER program) and replacing it with a scheme that allows major industrial polluters to directly invest in unproven technology such as carbon capture and sequestration (CCS). 

In place since 2020, the TIER program was implemented by former Conservative Premier Jason Kenney as a response to the federal government’s carbon backstop legislation. The current program offers heavy industrial carbon emitters a choice of ways to reduce GHG emissions that simultaneously save them money while investing in clean energy technology. 

TIER has been a successful component of the province’s otherwise lacklustre performance on reducing green house gas emissions. Scrapping this program aligns Alberta with efforts in the United States where President Donald Trump is killing programs that support clean energy development. 

Instead of gutting climate policy, Alberta should be assessing where future markets for clean, renewable energy will be, and strengthening our commitment to carbon reduction to access those markets. Environmental Defence strongly urges the Alberta government to leave the TIER program in place, and to build on its success to support an energy transition strategy that aligns with the worldwide trend towards a clean economy. 

Background:

  • According to the Government of Alberta, “The TIER system implements Alberta’s industrial carbon pricing and emissions trading system. TIER helps industrial facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.”
  • Alberta was one of the first jurisdictions to have an industrial carbon pricing system. The province introduced the Specified Gas Emitters Regulation (SGER) in 2007 to price carbon pollution from large emitters in the province and use the resulting revenue for investments in low-carbon technology.
  • According to research from the Canadian Climate Institute, Industrial carbon pricing is one of the most effective ways to reduce green house gas emissions. “By 2030, industrial carbon pricing (which includes various types of large-emitter trading systems) is projected to contribute between 23 and 39 per cent (or 53 to 90 Mt) of avoided emissions from all policies implemented to date. And between now and 2030, these large-emitter trading systems—such as Ontario’s emissions performance standard or Alberta’s TIER system—will do more than any other policy to cut emissions, delivering between 20 and 48 per cent of emissions reductions expected from Canada’s Emissions Reductions Plan moving forward.”

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

– 30 –

For more information or to request an interview, please contact:

Alex Ross, Environmental Defence, media@environmentaldefence.ca

Tags: AlbertaEconomickillingmistakestatementtier
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