Understanding Emission Performance Credits

The purchase of Emission Performance Credits is one compliance option for regulated facilities under the Specified Gas Emitters Regulation. Emission Performance Credits are credits generated by regulated facilities that have reduced emissions below their mandated reduction.

Like offsets, these credits are used by facilities that are unable to meet their reduction requirement through on-site facility improvements. Unlike offsets, these additional reductions occur at regulated facilities.

Emission performance credits can be banked for future use or traded between facilities owned by the same company. They can also be registered with the Alberta Emission Performance Credit Registry. Once these credits are registered, they can then be purchased by other regulated companies that have not met their reduction target. Like carbon offsets, the cost for emission performance credits vary because it is market-driven.

Infographic: Explanation of Emission Performance Credits

 

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Updated: Aug 25, 2015