The Alberta government announced in September that it would be investing $750 million from the Technology Innovation Emissions Reduction (TIER) fund into emissions reduction programs. TIER is Alberta’s industrial carbon pricing policy, and the fund comes from companies that choose to pay for carbon pollution they’re unable to reduce or eliminate at their facilities. Of the $750 million accrued as of mid-2020, by this month $445 million had been invested.
But with wallet in hand, Alberta is now at a critical juncture. The signs are growing that long-term demand for fossil fuels is unlikely to be what it once was. Next year, as the carbon price goes up to $40/tonne CO2e, the fund will be larger but the government has given itself permission to redirect funds into general revenue. So the investments we make now will have an impact on the province’s economic future for decades to come.
Future investments should target emerging sectors
The Alberta government has made significant investments in decarbonizing oil and gas, and must now turn to investing in emerging sectors. The temptation to use the TIER fund for general revenues must be resisted, as these investments are crucial to Alberta’s future success. The task at hand is to place smart bets on disruptive technologies that would not otherwise receive funding.
Others have pointed to potential opportunities…
Source: In Alberta, emissions reductions could fund the future | Blog Posts | Pembina Institute