Alberta cuts large emitters a break and expands funding for carbon reduction programs
The Province of Alberta announced a new $1.4 billion fund to help its economy transition to a more "diversified, low-carbon future."
The funds include:
- $440 million to help oil sands companies reduce carbon intensity
- $225 million for research and commercialization of new technologies that reduce emissions
- $240 million for industrial energy-efficiency upgrades
- $63 million in grants for bioenergy projects, and
- $400 million in "green loan" guarantees.
The funds will come from the province's carbon tax revenues.
Environment Minister Shannon Phillips also announced Carbon Competitiveness Incentives (CCI) for large industrial facilities that emit more than 100,000 tonnes of carbon annually.
Large emitters were expected to pay up to $1.2 billion annually in levies by 2020, but the new plan calls for a phase-in of the levies over the next two years and provides some funding assistance. CCIs are expected to save large emitters about $400 million per year by 2020.
The government says the plan will reduce emissions by 20 million tonnes by 2020, rising to 50 million tonnes by 2030.
CCIs replaces the Specified Gas Emitters Regulation effective January 1, 2018.