Emily Clarke

What are TIER Regulations?

Governments worldwide are doing their best to combat environmental emissions and all the nasty effects of it. Regulations are ever-evolving, and companies must keep up with changes to ensure compliance. These regulations help to keep significant emitters under control and hold them accountable, but they also encourage sectors to find innovative ways to reduce their emissions.

One example is TIER regulations.

TIER stands for Technology Innovation and Emissions Reduction. TIER is at the heart of emissions management in Alberta, Canada. The TIER system helps organizations invest in cleaner technology while remaining competitive and saving money. The system meets federal requirements and offers some protection for facilities from the high fuel charge under the Greenhouse Gas Pollution Pricing Act (GGPPA).

About TIER

The Government of Alberta first introduced TIER in 2020. Amendments to the system occurred in 2022, but the regulation has been going strong since TIER started. The government developed TIER to create a unique approach to reducing emissions from industrial facilities. While the GGPPA already existed, TIER is an Alberta-exclusive regulation system, providing more control and flexibility for the province.

Because the GGPPA has provisions to exempt facilities regulated under provincial policies, TIER is what companies in Alberta typically use to comply with emissions standards. It meets federal standards, so TIER-regulated facilities qualify for exemptions from GGPPA.

What Facilities Must Comply with TIER?

Not all facilities are TIER-regulated. It applies to facilities that emit at least 100,000 tonnes of carbon dioxide equivalent per year. For companies that import hydrogen, the threshold for regulation is 10,000 tonnes annually.

The TIER system benefits all facilities involved, and companies can opt in, even if they don't produce the required emissions. Generally, facilities must emit at least 2,000 tonnes, compete directly with a regulated facility and belong to sectors known for extensive emissions.

How Does a Facility Comply with TIER?

Every facility's obligations depend on its benchmarks. Those benchmarks set allowable emissions, and companies can comply with TIER in several ways.

This includes reducing on-site emissions based on the benchmarks, submitting offset or performance credits or purchasing fund credits.

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Emily Clarke is providing info about a single platform for your oil and gas software solutions. You can find her thoughts at gas supply chain software blog.