Should Alberta Change How Large Industrial Emitters Pay for Carbon?

Official title: Output-based Allocation System Engagement

Closed Regulations & Permits Economy & Jobs Environment & Climate Natural Resources
Alberta completed a consultation on replacing its old emissions rules for big industrial polluters. The new system would set industry-wide benchmarks instead of facility-specific targets. Facilities beating the benchmark earn credits; those exceeding it must pay up or buy offsets. This affected oil sands, power plants, refineries, and chemical manufacturers.

Why This Matters

Work in oil and gas, power generation, or heavy industry? Your employer's costs could change. If you live near a major industrial facility, this affects how much they're pushed to cut pollution. The rules also influence whether Alberta stays competitive with other provinces and countries.

What Could Change

Facilities emitting 100,000+ tonnes of greenhouse gases annually moved to product-based benchmarks in 2018. High performers earn credits they can sell. Poor performers must improve, buy credits, purchase offsets, or pay into Alberta's climate fund. The old facility-specific reduction targets were eliminated.

Key Issues

  • How should emissions benchmarks be set for different industrial products?
  • How can the system protect Alberta industries from losing business to jurisdictions with weaker climate rules?
  • What compliance options should facilities have when they exceed their emissions allocation?

How to Participate

  1. This consultation is now closed. Stakeholders participated in technical workshops completed in March 2017, and an online questionnaire closed March 31, 2017.
  2. Review the discussion document to understand the options that were considered.

What Happened

The consultation was completed in 2017. Stakeholders from various industries, environmental organizations, academia and think tanks participated in technical workshops completed in March 2017. An online questionnaire also gathered public feedback before closing on March 31, 2017. The new output-based allocation system came into effect in January 2018.

Key Documents