Alberta Industrial Carbon Tax program is changing to recognize the company’s investment in reduction in emissions

The Alberta government is changing its industrial carbon tax program so that companies avoid paying provincial fees for emissions by investing in their own emissions reduction projects.

Premier Daniel Smith told reporters on Tuesday that the possibility of this decline would support the companies to work for low emissions.

“We are looking at it like a recycling program,” Smith said.

“It will encourage companies to spend money here in Alberta, a government to invest specific investment or winners or losers for their projects to invest on emissions.”

Smith said that the province is also allowing small companies that do not meet the minimum emission limit of the program to get out of the carbon pricing system for 2025.

“This change will help small industries to save money and redirect resources that will improve emission reduction in investment or other operating reforms for higher cost savings,” he said.

‘Important victory for industry’: Environment Minister

Alberta has an industrial carbon pricing system since 2007. The current version, called technology innovation and emission reduction (tier), is applicable from 2020.

Smith said that in consultation with the changes in the program, his government had done with hundreds of oils and natural gas authorities in the previous spring.

Environment Minister Rebecca Shulz while talking with Smith said that changes are “an important victory for the industry”.

“Instead of sticking to two compliance options, which is using a credit to pay a levy or offset its emissions, which makes companies renew in their facilities and selected the onsite techniques that are the best work for them, it helps in the economics of production, but also reduces emissions,” said the Shulz said.

Environmental groups raise concerns

Smith’s announcement attracted criticism with groups such as the Clean Energy Think Tank The Pembina Institute, stating that changes could be “double-counter”, while Alberta can also weaken the value of the carbon credit of Alberta.

Institute Executive Director Chris Semson-Baikar said, “Depending on what we have heard today, companies will be able to avoid paying compliance costs at the point of investment in technologies, but also generate carbon credits when their emissions begin to decrease.”

Executive Vice President Dell Begin agreed at the Canadian Climate Institute. He said in a statement that allowing double-accounting will allow a carbon credit oversuply in the market.

“Without correction, additional credit supply – and result of low credit prices – will dilute the incentive to investment,” the beagin said.

“These changes combine two things: less long -term certainty for businesses and investors, and more harmful emissions in our environment, threatening the alberton communities that provoke more forest fire, drought and extreme weather, contributing to global emissions.

Opposition NDP energy critic Nagwan al-Gunid said that the province did not consult adequate before proceeding with change.

He also said that Smith and Shulz’s announcement lacks specific details on what kind of projects will be qualified for companies to invest under the new rules.

Shulz said on Tuesday that if they choose to comply through a new method, companies would be eight years to invest infrastructure.

He said that if those investments are not made, the emission fee of the company will be collected by the government as usual.

Pathway Alliance President Kendal Dilling said in a statement that the government’s change in emissions will encourage investment in technology.

Dilling stated that Alliance, who represents Canada’s largest Oysands companies that are working together on a major potential carbon capture and storage projects, appreciate the province’s efforts to support the Oylas industry.

Alberta left its industrial carbon value at $ 95 per tonne emissions in May, and neither Smith nor Shulz mentioned on Tuesday whether the freeze would be removed in the near future.

Shulz’s office did not immediately answer questions about the future of the freeze.

Smith said in May that the step was an important step in keeping the industry competitive in the Canadian tariff fight with the United States.

The price of Alberta was determined to grow up to $ 110 per tonn next year as per the federal rules, and if Alberta does not pick up the freeze until the new year, it would mean that the province breaks its compliance agreement.

Ottawa may opt for applying the price of $ 110 if Alberta does not increase its carbon price in January – one step advocacy group environmental protection called Prime Minister Mark Carney to take on Tuesday.

“When it comes to fighting climate change, Alberta needs to pull his weight and if it does not, if it comes to fighting climate change, the federal government should step.”