New Climate Change Regulations, Effective July 1, 2007 require Alberta facilities which emit more than 100,000 tonnes of greenhouse gases a year to reduce emissions intensity by 12%.
Companies have three ways to meet their reduction obligation. They can make operating improvements, buy Alberta-based credits or contribute to the Climate Change and Emissions Management Fund.
Alberta has released draft protocols which outline how to quantify and verify emissions reductions for different types of projects in order to create eligible off-set credits. Each of the protocols is based on the ISO Standard for Project GHG Quantification.
Companies which do not make facility improvements to reduce emissions, or acquire Alberta-based credits, may pay $15 for every tonne that they are over their reduction target. The money will be invested in the Climate Change and Emissions Management Fund and will be directed to strategic projects or technology aimed at reducing greenhouse gas emissions in the province.