Alberta TIER System & CCS Incentives

The Technology Innovation and Emissions Reduction (TIER) Regulation is Alberta industrial carbon pricing for large emitters (100,000 tCO2e or hydrogen-import thresholds, plus opt-ins): facilities meet intensity benchmarks by cutting emissions onsite, retiring Emission Performance Credits, Alberta offsets or sequestration credits, or paying into the TIER Fund. The previously scheduled rise to C$170/t by 2030 was halted on May 12, 2025, when the province froze the Fund price at C$95/t, citing trade uncertainty and competitiveness; secondary EPCs and offsets trade near C$28-30 at a discount. CCS matters inside TIER through the CO2 Capture and Permanent Geologic Sequestration protocol: offsets convert to tradeable, bankable sequestration credits (six-year expiry, stackable with the federal Clean Fuels Regulation), convertible further into non-tradeable capture recognition tonnes, with December 2024 updates adding DAC/BECCS removal classifications. December 2025 amendments (O.C. 369/2025) added investment credits and credit reactivation, a direct-investment compliance pathway, small-facility opt-out for 2025, and review by end-2030 — while the freeze raises federal-equivalency questions against the national benchmark.