The province of Alberta is responsible for approximately 35% of Canada’s total annual emissions – primarily the result of its prolific oil and gas industry as well as its energy generation mix. In 2003, the government of Alberta passed the Climate Change and Emissions Management Act, and in 2007, the Specified Gas Emitters Regulation (SGER) became operational. This established the first compliance greenhouse gas emissions marketplace in North America. As a result, more than 100 companies emitting over 100,000 tonnes of CO2 annually are required to reduce their annual carbon emissions intensity by 12%.
Regulated entities have the option of reducing their emissions at source through operational improvements, buying offsets from carbon projects developed within the Province using specific made-in-Alberta protocols, or contributing into a provincially managed “Climate Change and Emissions Management Fund” which in turn deploys capital to technology projects which are expected to reduce carbon emissions in the future. The Technology Fund payments have a set price of $15 per tonne of emissions.
The first phase of the SGER concludes in the fall of 2014. While the program has undergone a number of reviews and updates, it is widely expected that the Province will extend the life of the program, and possibly increase its stringency as it moves into its next phase.
We have a long track record working under the SGER, and have been involved in the development of more than 2.5 million registered offsets for this market using Alberta’s no-till agriculture protocol. If you’d like more information on the latest policy and market developments in Alberta, or inquiries on our offset project development services under SGER, please contact us.