Alberta Record

· Order in Council / TIER Amendment Regulation · in-force

TIER Regulation Amended to Introduce Investment Credits

This Order in Council amends the Technology Innovation and Emissions Reduction (TIER) Regulation, introducing 'investment credits' as a new compliance instrument. It defines their eligibility, use, and grants the Director new authority to i

Moderate impactCentralization of powerThe public, directly

What changed

  • Introduces 'investment credit' as a new compliance instrument within the TIER Regulation, defining 'Standard for Direct Investment,' 'eligible investment,' and 'eligible investment project' with associated criteria and auditing requirements.
  • Grants the Director authority to issue investment credits for eligible investments and approve projects not pre-approved under the Standard for Direct Investment.
  • Amends the net emissions calculation formula to incorporate investment credits (IC) and establishes rules for their use, including a 5-year validity, single-use restriction, and applicability from the 2026 compliance year.
  • Amends the Specified Enactments (Jurisdiction) Regulation (AR 201/2013) by repealing Section 2(c.1) from Schedule 2.

Why it matters

  • Expands compliance options for regulated facilities under the TIER program, introducing a new mechanism to incentivize direct investments in emissions reduction projects, potentially altering market dynamics for other credit types.
  • Centralizes authority with the Director to approve investment projects and issue credits, requiring facilities to adhere to new auditing and reporting standards, thereby increasing administrative oversight.
  • Alters the scope of enactments under the Specified Enactments (Jurisdiction) Regulation (AR 201/2013) by removing a specific enactment from Schedule 2, which may reallocate or remove oversight responsibilities.

Other governance concerns

  • Increased discretion of the Director in approving projects and issuing credits.
  • New compliance mechanism for regulated facilities.
  • Reliance on external standards ('Standard for Direct Investment' and 'Standard for Validation, Verification and Audit') not fully detailed in the OIC text.
  • Changes to regulatory oversight
  • Potential shift in accountability for specific enactments
  • Clarity of jurisdictional boundaries

Primary sources (2)

Secondary sources (2)