AB: Alberta’s New Carbon Competitiveness Incentive Regulation
The Alberta government recently announced that the Carbon Competitiveness Incentive Regulation (CCIR) will replace the 10-year-old Specified Gas Emitters Regulation (SGER) as of January 1, 2018, and be phased in over three years. Like the SGER, the CCIR will apply to facilities that emitted 100,000 tonnes or more of greenhouse gasses (GHGs) in 2003 or in any subsequent year.
The CCIR is designed to provide incentives to large emitters to reduce GHG emissions by improving performance. It is based on GHG emission benchmarks (also called output-based allocations) for various industries, with facilities that emit fewer GHGs than their peers in their industry being rewarded and those that emit more being penalized.