Province Officially Replacing Federal Carbon Tax With Alberta Emissions Reduction Regulation

Large energy projects across Alberta won’t be impacted by the federal government’s carbon tax in 2020.

The provincial government announced on Friday the Alberta Technology Innovation and Emissions Reduction regulation has been accepted under the federal Greenhouse Gas Pollution Pricing Act.

Through the TIER system, oil and gas facilities that emit more than 100,000 tonnes of carbon dioxide must reduce their emissions by 10 per cent in 2020. They will also have to lower it by one per cent every year afterwards.

If companies don’t lower their emissions, they will be forced to pay the $30-per-tonne fee.

“When we engaged with industry on TIER in summer 2019, we heard loud and clear that they want to be regulated by the province – not by Ottawa,” said Jason Nixon, Alberta’s Minister of Environment and Parks.

“We will continue to fight to protect Alberta’s jurisdiction over our policies, continue to take meaningful action on climate change in a way that makes sense for our economy, and continue to be a strong voice for Alberta in Ottawa and with the rest of Canada.”

Meanwhile, the province is working on ensuring small and medium sized oil and gas facilities will also be allowed to go through the TIER system instead of the federal carbon tax.

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