Integrating Alberta’s carbon pollution pricing system for large industrial emitters with the Federal fuel charge

CANADIANS UNDERSTAND that pollution is not free, and that when it comes to climate change, doing nothing will cost us all. That’s why the Government of Canada took action to make sure that there is a price on carbon pollution across the country. Pollution pricing will help to protect Canadians from the costs and dangers presented by climate change and support the transition towards a more innovative low-carbon economy, while ensuring that polluters pay.

Last June, the Government of Canada announced that the federal pollution pricing fuel charge will apply in Alberta, effective January 1, 2020, as a result of the province’s repeal of its carbon levy. The Government also indicated that it would monitor any proposed changes to Alberta’s large industrial emitter system and would undertake another benchmark assessment once sufficient details about the new system for large emitters are available.

Today, the Government of Canada announced that Alberta’s Technology Innovation and Emissions Reduction (TIER) regulations—which were announced on October 29, 2019 and will come into force on January 1, 2020—meet the federal government’s stringency requirements for carbon pollution pricing systems, for the emission sources they cover. Accordingly, the province will not be subject to the federal “backstop” output-based carbon pollution pricing system. Alberta’s TIER facilities can apply to Environment and Climate Change Canada and the Canada Revenue Agency in order to register as an emitter, enabling them to obtain fuel without the charge applying.

In support of today’s announcement, the Department of Finance Canada has released a set of draft regulatory proposals under the Greenhouse

Gas Pollution Pricing Act, integrating TIER facilities with the federal fuel charge. The regulatory proposals also include measures to ensure other relief related to the federal fuel charge applies appropriately in Alberta, including relief provided to greenhouse operators, remote power plant operators and fishers.

Canadians are invited to provide comments on these draft regulations by January 10, 2020. Please send your comments to fin.tarification-pollution-pricing.fin@canada.ca. Written correspondence related to this consultation can also be mailed to:

Carbon Pollution Pricing Department of Finance

Canada

90 Elgin Street Ottawa, Ontario

K1A 0G5 References to “Announcement Date” in the draft regulatory proposals and explanatory notes accompanying this release refer to today’s date. ■