Technology Innovation & Emissions Reduction (TIER)

Technology Innovation & Emissions Reduction (TIER): alberta's industrial carbon pricing scheme requiring large emitters to meet benchmarks via credits, offsets, or tier fund payments.

Jurisdiction
Status
active
Category
First deadline
June 30 annually (verified Annual Compliance Report); September 30 true-up
Who must comply
Large industrial facilities in Alberta, Canada emitting at least 100,000 tonnes CO2e per year are automatically regulated; facilities emitting at least 50,000 tonnes CO2e per year may opt in. Covered sectors include oil sands, natural gas processing, coal and natural gas electricity generation, fertilizer, cement and lime, mining, and pulp and paper.
Penalties
A financial penalty equal to three times the federal carbon price per uncovered tonne of CO2e, plus administrative monetary penalties, enforcement orders, potential suspension of operating permits or project approvals, and reputational and investor risk.

What it is

The Technology Innovation and Emissions Reduction (TIER) Regulation is Alberta's industrial carbon pricing and compliance framework, designed to reduce greenhouse gas emissions while maintaining economic competitiveness.

Facilities that exceed their emissions benchmarks must surrender emission performance credits, use Alberta-based offset credits, or pay into the TIER Fund at federally aligned carbon price rates.

Who must comply

Facilities emitting at least 100,000 tonnes CO2e per year are automatically regulated, while facilities emitting at least 50,000 tonnes CO2e per year may opt in to avoid the federal Output-Based Pricing System. Covered sectors include oil sands, natural gas processing, electricity generation, fertilizer production, cement and lime manufacturing, mining, and pulp and paper mills.

What you must disclose

Facilities must submit third-party verified compliance reports, via the EMCR online platform, including total Scope 1 GHG emissions by source, production output and the applicable benchmark, net compliance position, compliance units used (emission performance credits and offsets), and TIER Fund payment details. Reasonable assurance verification by ISO 14065 accredited auditors is required annually regardless of facility size.

Timeline

TIER was introduced via Bill 19 in October 2019, with amendments effective January 2023. Regulated facilities must submit a verified Annual Compliance Report by June 30 each year and complete a true-up (surrendering credits or paying TIER Fund contributions) by September 30.

The federally aligned carbon price was C$80 per tonne in 2024 and rises annually to C$170 per tonne by 2030.

Stay ahead of this regulation.

Book a strategy call. We'll map what this regulation means for your business and the fastest path to compliance.