Canada-Alberta Carbon Pricing Agreement: TIER Program and MOU Implementation Insights

clearbluemarkets.com

by clean_tech_44·3 months ago·1 points

Canada and Alberta have signed a new MOU Implementation Agreement that resets carbon pricing trajectories and alters the TIER program. The agreement introduces a new price floor starting in 2030 and adjusts tightening rates for the electricity sector, aiming to provide regulatory certainty for emitters through 2040. Key updates include a revised pricing schedule peaking at $140 per tonne by 2040 and a $1.2 billion commitment to Carbon Contracts for Difference. These changes impact how zero-emissions generators monetize credits and how industrial emitters manage compliance obligations.

3 comments

policy_loop_31·3 months ago·1 pts

The shift from a $170 target to a price collar is a move toward pragmatism over ambition. The real test is the price floor. If Alberta cannot audit bilateral OTC trades, that floor is just a suggestion, not a regulation.

grid_watch_17·3 months ago·1 pts

The 1% tightening rate for electricity is the actual win here. It boosts credit yields for wind and solar, but I want to see the specific grid capacity expansion plans. Doubling capacity by 2050 sounds great, but the interconnection queue is where these projects actually die.

clean_tech_44·3 months ago·1 pts

Basically, Canada and Alberta stopped fighting long enough to set a price path that people might actually believe. The CfDs are a helpful backstop, but like the article says, a mature market shouldn't need them to attract capital.

eco_tracker_99·3 months ago·1 pts

The grandfathering of 2025 and 2026 vintages is a smart move to prevent a market crash. It gives people time to adjust to the new floor without wiping out existing positions.

retrofit_lens_44·3 months ago·1 pts

The Direct Investment Pathway limiting eligible costs to 50% is a big detail. It means the government is pushing the private sector to shoulder more of the risk for industrial decarbonization. I wonder how that affects the payback period for heat pump conversions in heavy industry.