Alberta is moving to update its Technology Innovation and Emissions Reduction (TIER) system this fall in a bid to help major industries spend in on-site emissions reduction projects, cut costs for smaller facilities, and strengthen the province’s competitive edge.Premier Danielle Smith said Tuesday the changes will give industry the certainty and flexibility it needs to grow production, lower emissions, and attract capital while fighting back against federal policies she called unrealistic. “TIER has always been about Alberta leading the way — proving to the world that it’s possible to increase energy production, grow the economy and lower emissions at the same time,” Smith said.The proposed amendments would let companies count direct spending on emissions reduction technology as compliance under TIER, rather than relying only on buying credits or paying into the provincial fund. .Smaller facilities that fall below the regulatory threshold would also be able to opt out in 2025, cutting red tape and saving money that could be redirected into new technology or operations.Environment Minister Rebecca Schulz said the goal is to make Alberta a magnet for investment again, while Energy Minister Brian Jean called the updates critical to supporting the province’s Emissions Reduction and Energy Development Plan.Industry leaders welcomed the announcement. Tristan Goodman of the Explorers and Producers Association of Canada said the move addresses competitiveness concerns and keeps climate policy in provincial hands. .Kendall Dilling of the Pathways Alliance said the update will encourage investment in carbon-cutting infrastructure while protecting jobs in the oil sands.Since 2019, Alberta has spent $1.6 billion from the TIER fund into geothermal, hydrogen, energy storage, methane reduction, and carbon capture projects. The province says those projects are set to cut 70 million tonnes of emissions by 2030 while supporting 21,000 jobs.Currently, about 60% of Alberta’s total emissions are regulated under TIER, which applies to large industrial sites in oil and gas, electricity, forestry, chemicals, fertilizers, minerals, food processing, and waste. Regulated facilities must meet annual targets either by hitting facility-specific benchmarks or paying $95 per tonne into the fund.Smith said the updates will ensure Alberta remains the “destination of choice” for global investment while defending jobs and the province’s energy sector.
