Investor Presentaiton
Regulatory Tailwinds in Canada
Alberta Technology Innovation and Emissions Reduction
Regulation ("TIER")
TIER regulation implements Alberta's industrial carbon pricing and emissions trading
system. Facilities regulated under TIER (any facility that annually emits 100,000 tonnes or
more of CO2e) must reduce emissions to meet facility benchmarks
Compliance under the program can be achieved using Alberta based emissions offsets,
which are generated by facilities that undertake a project or activity in Alberta that results in
the reduction or sequestration of greenhouse gas emissions they are quantified using
approved quantification protocols, and are verified by a third party
Each offset represents one tonne of CO2e that a TIER regulated facility can purchase and
use to effectively offset the number of excess tonnes of CO2e it produces in a given year,
relative to the applicable benchmark
The price of an emission offset is driven by market forces; however, the price of a TIER
fund credit (another way to meet TIER obligations) effectively acts as a price floor
TIER fund prices are expected to follow the federal carbon pricing thresholds increasing to
$170/tonne in 2030
Canada Clean Fuel Regulations
On June 20, 2022, the Clean Fuel Regulations under the Canadian Environmental
Protection Act were registered, bringing a Canadian Clean Fuel Standard ("CFS") into law.
Compliance obligations effective in 2023.
The CFS targets carbon emission reductions from carbon content in liquid fossil fuels.
Primary suppliers must lower the carbon intensity of their fuel using compliance credits,
each credit equivalent to a one tonne reduction in lifecycle CO2e emissions for the
applicable compliance period.
The new regime will create a new carbon credit market in Canada that will be key to
compliance for fuel suppliers further, activities in one jurisdiction can be used to create
credits in another jurisdiction
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