Navigating Alberta TIER Compliance: Essential Updates for Environmental Managers in 2025

Published On: May 26, 2025Categories: News & Events

As Alberta’s Technology Innovation and Emissions Reduction (TIER) Regulation evolves, staying informed is critical for environmental managers and compliance professionals. Understanding the recent updates for the 2025 compliance year ensures your facility remains compliant and ahead of industry standards. This article outlines the key changes that facilities regulated under Alberta’s TIER program need to know.

Understanding the Alberta TIER Regulation

TIER applies to facilities emitting more than 100,000 tonnes of CO₂ equivalent annually, as well as facilities voluntarily opting into the program. Each regulated facility must annually submit a verified compliance report demonstrating that they meet the prescribed emission intensity benchmarks.

Key Regulatory Changes for the 2025 Compliance Year

Adjustment of Credit Usage Limits

  • Facilities are now permitted to use credits to satisfy up to 80% of their compliance obligations, an increase from the previous 70% limit. This allowance is set to increase further, reaching 90% by 2026.

TIER Fund Pricing Update

  • The Alberta government has set the TIER Fund price at CAD $95 per tonne for the 2025 compliance year. Facilities should note that this price is now fixed indefinitely, deviating from previous schedules that indicated annual increases.

Increased Stringency of Emission Benchmarks

  • Emission reduction benchmarks continue to tighten, with Facility-Specific Benchmarks (FSBs) and High-Performance Benchmarks (HPBs) subject to an annual 2% tightening rate. For the oil sands sector, specifically mining, in-situ, and upgrading facilities, benchmark stringency increases to 4% annually beginning in 2029.

Management of Emission Performance Credits (EPCs)

  • EPCs must be strategically managed due to their 5-year expiration limit from the date of issuance, emphasizing timely usage to ensure compliance.

Encouraging Carbon Capture through Recognition Tonnes

  • Facilities employing carbon capture technologies may directly reduce their total regulated emissions by applying capture recognition tonnes, incentivizing further investment in carbon capture and storage (CCS) projects.

Enhanced Verification Requirements

  • Compliance reports and benchmark applications require third-party verification before submission. The Alberta government now mandates that verifiers complete specialized training programs to ensure consistent and accurate verification processes.

Important Compliance Deadlines for 2025

  • March 15, 2025: Forecasting Report Update for the 2024 data.
  • March 31, 2025: Submission of Cost Containment Applications for the 2024 compliance year.
  • June 30, 2025: Deadline for submitting verified Compliance Reports and True-Up obligations.
  • September 1, 2025: Facility-Specific Benchmark Applications due for the upcoming year.

Actionable Recommendations for Facility Compliance

  • Regularly update and maintain accurate quantification methodology documents (QMDs).
  • Strategically leverage EPCs within the new credit usage limits.
  • Consider integrating or expanding CCS initiatives to benefit from new regulatory incentives.
  • Engage proactively with accredited verification service providers to meet enhanced verification standards.

Environmental managers and compliance officers must remain vigilant and proactive in adapting to these regulatory changes. Facilities equipped with the latest information will maintain compliance efficiently, optimize their operational strategies, and contribute effectively to Alberta’s broader emissions reduction goals.