The Canadian Renewable Energy Association (CanREA) is concerned that the changes to the Technology Innovation and Emissions Reduction (TIER) program announced today by Premier Danielle Smith and Minister Rebecca Schulz will further jeopardize existing investments and undermine Alberta's ability to attract future clean energy capital.
The proposed changes are poised to have a significant impact to existing renewable projects in Alberta. For more than 15 years, the TIER framework has been the cornerstone of Alberta's industrial carbon pricing framework, valued for its stability, transparency and credibility. A key principle of the program has been that credits have only been issued for private sector activities that demonstrably reduce emissions, on a strict, tonne-for-a-tonne basis, ensuring real, measurable environmental impact. This has helped attract billions of dollars of private sector investment, particularly in the last five years.
Today's announcement will break that bond of trust in stability and expectations that have fostered Alberta's attractive investment climate for clean technology. Under the new rules, emitters could receive credits for activities such as technical and financial studies that do not result in actual emissions reductions. In some cases, facilities may be credited twice once for planning and again for implementation creating a system of double counting. There is also concern that allowable investments may include routine refurbishments or optimizations that do not represent genuine emissions abatement.
CanREA participated in government engagement sessions and urged a more robust consultation process, that mirrors the thorough review completed in the past and that allows for in-depth and meaningful analysis of the proposed changes. By proceeding without robust engagement, government risks the reputation of a program built on nearly two decades of collaborative regulatory and policy development across a variety of stakeholders.
"CanREA members have been active participants in the TIER and the carbon offset market. These proposed changes are a real threat to the credibility of the offset market system," said Radha Rajagopalan, CanREA's Director of Policy for Alberta. CanREA is also concerned these changes could compromise Alberta's ability to meet federal requirements around industrial carbon pricing.
"Alberta's TIER system had long been a beacon of stability for attracting investment in clean energy and clean technology. The speed and scale of these changes is both surprising and troublesome. With so many changes already underway in Alberta, in the electricity market and with government policy, these fundamental changes to TIER are adding to an already challenging climate for renewables", added Rajagopalan.
CanREA remains committed to working with the Government of Alberta to ensure any future changes to TIER support Alberta's goals and maintain investor confidence in the province's energy future.
Quotes
"CanREA members have been active participants in the TIER program and the carbon offset market. These proposed changes are a real threat to the credibility of the offset market system."
"Alberta's TIER system had long been a beacon of stability for attracting investment in clean energy and clean technology. The speed and scale of these changes is both surprising and troublesome. With so many changes already underway in Alberta, in the electricity market and with government policy, these fundamental changes to TIER are adding to an already challenging climate for renewables."
Radha Rajagopalan, Director of Policy for Alberta, Canadian Renewable Energy Association (CanREA)
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About CanREA
The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada's energy future. We work to create the conditions for a modern energy system through stakeholder advocacy and public engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada's energy needs. For more information on how Canada can use wind energy, solar energy and energy storage to help achieve its net-zero commitments, consult "Powering Canada's Journey to Net-Zero: CanREA's 2050 Vision." Follow us on Bluesky and LinkedIn here. Learn more at renewablesassociation.ca.
