Industrial Emissions Management

Notice:

The Carbon Competitiveness Incentive Regulation replaces the Specified Gas Emitters Regulation on January 1, 2018. Updated regulations and publications are available at:

Alberta requires any facility that emits 100,000 tonnes or more of greenhouse gases a year to reduce their emissions intensity. Currently, they must reduce it by 20 per cent.

There are four ways companies can comply:

The price of carbon for facilities choosing to pay into the fund is $30 for every tonne over a facility's reduction target.

Specified Gas Emitters Regulation Results

As of January 2018, the Specified Gas Emitters Regulation (SGER) has achieved cumulative reductions of 95 million tonnes (Mt) through operational changes and investing in Alberta-based carbon offsets.

Compliance Year Emissions Reductions at Facility
(Mt CO2e)
Offset Credits Submitted
(Mt CO2e)
Total Reductions
(Mt CO2e)
Fund Payment
($Million)
Facility Improvements Cogeneration Recognition
2007 (half year) 1.2 1.3 0.9 3.4 45.2
2008 1.1 2.6 2.9 6.6 88.3
2009 0.7 2.7 3.8 7.1 66.3
2010 0.4 2.6 3.9 6.8 78.9
2011 2.1 2.5 5.4 10.0 62.9
2012 1.5 3.4 3.0 7.9 93.7
2013 1.8 3.3 2.2 7.3 94.4
2014 4.7 3.1 2.3 10.2 84.3
2015 4.2 3.2 0.0 7.5 135.7
2016 5.6 3.4 0.8* 9.6 206.5
2017 6.6 3.7 9.2* 19.0 94.0
Total 29.9 31.8 34.4 95.4 1050.2

Note: Mt = Million Tonnes

* Includes additional credits issued under section 7(1.2) of the SGER

Figures are subject to change as a result of auditing and are rounded for presentation purposes.

Updated August 27, 2018

Columns in the Reporting Table

  • Compliance Year: Emissions are calculated on a calendar year basis. The half-year reporting in 2007 is a result of the regulation being introduced earlier that year.
  • Emissions Reductions at Facility: To comply with the regulation, facilities can make efficiency improvements to their operations that result in a direct reduction in greenhouse gas emissions from their on-site operations. This is calculated by comparing the emissions intensity achieved during the facility’s compliance period to the facility’s approved baseline emissions intensity.
  • Cogeneration Recognition: Cogeneration (combined generation of heat and power) facilities that perform better than the stand alone alternatives of an 80 per cent efficient boiler and a natural gas combined cycle electricity plant with an emissions intensity of 0.418 tonnes CO2e per megawatt-hour receive recognition for the performance in their compliance calculation. This is reported separately from emissions reductions at the facility.
  • Offset Credits Submitted: Following protocols approved by the Alberta government, emissions reductions that occur in Alberta outside of the facilities subject to the Specified Gas Emitters Regulation are eligible to generate emissions offset credits. All offset credits are verified by a third party before acceptance as compliance.
  • Total Reductions: Total reductions are calculated by adding the direct emissions reductions at facilities with the recognition of cogeneration and offset credits submitted. Total reductions do not include emission offsets created under section 7(1.2) of the Specified Gas Emitters Regulation.
  • Fund Payment: In 2017, companies could choose to pay $30 per tonne for every tonne of emissions over their required reduction into the Climate Change and Emissions Management Fund. The Fund payment price was $15 per tonne for 2007 to 2015, and $20 per tonne for 2016. The funds are used to achieve greenhouse gas reductions within Alberta and to help increase Alberta’s ability to adapt to climate change.

Related Information

For more information on the Specified Gas Emitters Regulation, see:

 

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Updated: Sep 6, 2018