On November 2, 2020, Alberta Premier Jason Kenney and Minister of Environment and Parks, Jason Nixon, announced a commitment of up to $280 million to fund three Emissions Reduction Alberta (ERA) programs. The goal of the funding is to support innovative projects for small, medium, and large industries across all sectors in Alberta, while supporting around 5000 jobs and cutting an estimated 13 millions tonnes of emissions by 2030.
The funding will come from the TIER system (up to $180 million) and LCELF (up to $100 million). The three programs include the Shovel-Ready Challenge, Energy Savings for Business Program, and the Partnership Intake Program.
“The TIER system is key to Alberta’s economic recovery, supporting projects that cut emissions, attract investment, keep industry competitive and get Albertans back to work. This investment comes at a critical time when Alberta must be bold in driving economic recovery.”
Jason Kenney, Premier
Up to $180 million from the TIER fund and up to $100 million from LCELF will support innovative projects for small, medium and large industries across all sectors in Alberta. Projects can include technologies like carbon capture, utilization and storage, industrial energy efficiency and geothermal to help facilities lower emissions, create investment opportunities and cut costs. Job creators can use energy savings to get more Albertans back to work.
“We’re equipping our job creators with the resources they need to move forward on projects that reduce emissions, reduce costs, and create good jobs. Alberta is a province of innovators, and I am proud that the TIER system continues to support our province’s leadership in emissions-reducing technology.”
Jason Nixon, Minister of Environment and Parks
“The Government of Canada is pleased to support made-in-Alberta solutions to create good jobs and grow a cleaner, more sustainable economy. This announcement underlines the federal government’s focus on supporting industry to adopt clean technology in order to fight climate change and put people to work. Announcements like this will enable Canada to achieve its climate goals while ensuring that we have a sustainable and prosperous economic future.”
Jonathan Wilkinson, Minister of Environment and Climate Change
“This commitment of new provincial and federal funding will help unlock the development and deployment of the technologies we need to stimulate the economy now and create the lower-emissions industries of the future.”
Steve MacDonald, CEO, Emissions Reduction Alberta
ERA programs include:
Shovel-Ready Challenge
This program will use up to $150 million in TIER and LCELF funding to support a call for proposals for leading-edge technologies at large industrial sites to reduce emissions and create jobs. It is estimated to inject more than $500 million into Alberta’s economy when industry dollars are included. Projects could include industrial energy efficiency or carbon capture utilization and storage at sites like oil and gas, concrete or forestry and agriculture. Applications are now open. Details are available here.
“By investing in leading-edge technologies and demonstrations, Alberta’s investment in ERA and the Shovel-Ready Challenge will provide immediate economic value, while advancing long-term technology innovation and environmental goals across several sectors.”
Lonnie Enns, senior vice-president of power supply, ENMAX
“Nutrien’s roots run deep in Alberta, as does our commitment to protecting the province’s air, water, and land. We support the province’s investment through Emissions Reduction Alberta for innovative, emissions reduction technologies which will continue to help agriculture become even more sustainable.”
Chuck Magro, president and CEO, Nutrien
Energy Savings for Business Program
This program will use up to $55 million in TIER and LCELF funding to help Alberta’s small and medium-sized facilities benefit from industrial and commercial projects that can be installed quickly to cut emissions, support jobs and add an estimated $300 million to Alberta’s economy. Projects could include heating and insulation upgrades in a variety of sectors like food processing and waste management, or in office buildings. This program is expected to open pre-approvals in January 2021. Details are available here.
“Alberta businesses have long been committed to minimizing their environmental footprint while continuing to grow our provincial economy. This exciting announcement by ERA will provide much-needed resources for small and medium-sized businesses to continue this important work in a time of ongoing fiscal pressures. By committing to local workers and suppliers, the Energy Savings for Business Program will truly be a win for local economies.”
Ken Kobly, president and CEO, Alberta Chamber of Commerce
Partnership Intake Program
This program will use up to $75 million in TIER and LCELF funding to continue supporting emissions reduction projects that stimulate Alberta’s economy. The program strengthens financial support for new technologies by helping applicants leverage funding from both ERA and trusted partner organizations, which also cuts red tape. This program will create opportunities for energy efficiency, hydrogen, geothermal, natural gas and nature-based solutions. This program accepts applications on an ongoing basis. Details are available here.
TIER funding
The TIER system is funded by large industry which pay into the fund when they do not meet emissions targets. This investment will help industry reduce emissions and supports Alberta’s recovery from the COVID-19 pandemic and low oil prices.
Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify, and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefiting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth.
Quick facts
TIER helps industrial facilities, which account for more than 65 per cent of Alberta’s total emissions, find innovative ways to reduce emissions and invest in clean technology to save money and stay competitive.
The TIER fund is being directed into programs that will bring investment to Alberta and continue to build on Alberta’s strong record on environmental, social and governance performance.
Emissions Reduction Alberta invests revenues from TIER to accelerate the development and deployment of innovative clean technology solutions.
Since 2009, Emissions Reduction Alberta has committed $611 million toward 185 projects worth $4.4 billion that are reducing emissions, creating competitive industries and leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of 34.7 million tonnes by 2030.
Source: Government of Alberta