Overview of TIER
Introduced: October 2019 (Bill 19); amendments effective January 2023
Region(s): Alberta, Canada
About TIER
The Technology Innovation and Emissions Reduction (TIER) Regulation is Alberta’s industrial carbon pricing and compliance framework, designed to reduce greenhouse gas (GHG) emissions while maintaining economic competitiveness.
The regulation applies to large industrial facilities and sets emissions intensity benchmarks based on production output. Facilities must stay under their benchmarks or use compliance flexibilities to offset excess emissions.
Entities exceeding their emissions benchmark must:
- Surrender emission performance credits (EPCs)
- Use Alberta-based offset credits
- Or pay into the TIER Fund at a rate aligned with the federal carbon price (C$80/tonne in 2024; rising annually to C$170/tonne by 2030)
The fund supports innovation and emissions reduction projects across Alberta.
Disclosure requirements
Facilities must submit a third-party verified compliance report including:
- Total direct (Scope 1) GHG emissions by source
- Production output and applicable benchmark
- Net compliance position (surplus or deficit)
- Type and number of compliance units used (EPCs, offsets)
- Payment details for any TIER Fund contributions
Reports are submitted via the Emissions Management and Climate Resilience (EMCR) Regulation online platform.
Criteria for compliance
Automatically regulated facilities
Facilities emitting 100,000 tonnes CO₂e or more per year are automatically covered by TIER.
Opt-in facilities
Facilities emitting ≥50,000 t CO₂e/year can voluntarily opt in to avoid federal carbon pricing under the Output-Based Pricing System (OBPS).
Sectors commonly regulated under TIER
- Oil sands operations
- Natural gas processing
- Coal and natural gas electricity generation
- Fertilizer and ammonia production
- Cement and lime manufacturing
- Mining and mineral processing
- Pulp and paper mills
Compliance timeline
June 30 (annually)
Submit verified Annual Compliance Report (including emissions, benchmarks, and credit use).
September 30 (annually)
True-up deadline — surrender credits or make payments to the TIER Fund for emissions exceeding your benchmark.
Third-party assurance
All regulated facilities must obtain reasonable assurance verification from an accredited third-party auditor under ISO 14065 standards. The verifier must be independent and approved by Alberta’s Ministry of Environment and Protected Areas. Audits are required annually for all regulated entities, regardless of facility size or emissions trend.
Penalties for non-compliance
Facilities that fail to meet compliance obligations may face:
- A financial penalty equal to 3× the federal carbon price per uncovered tonne of CO₂e
- Administrative monetary penalties and enforcement orders
- Potential suspension of operating permits or project approvals
- Reputational damage and investor risk exposure
