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Alberta Lets Emitters Avoid Carbon Fees With On-Site Projects

Critics warn the new compliance path could enable double-counting, weakening Alberta's carbon credit market.

Overview

  • Premier Danielle Smith said the option is expected to take effect this fall under the TIER program.
  • Smaller facilities below the threshold can opt out of the system for 2025 under a temporary carve-out.
  • Environment Minister Rebecca Schulz said companies choosing the new route get eight years to complete investments, with standard fees charged if they fail to deliver.
  • Alberta’s industrial carbon price remains frozen at $95 per tonne, creating a potential clash with the federal $110 schedule that advocacy groups want Ottawa to enforce.
  • The government says the changes follow consultations with oilsands and gas firms, while environmental and opposition voices warn of double-counting, credit oversupply, and unclear eligibility rules.