Potato processors welcome TIER eligibility

By Jensen, Randy on August 1, 2020.

Lethbridge Herald

Cavendish Farms and McCain Foods Canada are applauding the Kenney government’s announcement that potato processors, and other previously exempted industries such as wood product facilities, will now be eligible for provincial TIER (Technology Innovation and Emissions Reduction) which will help them achieve federal emissions targets without having to pay additional federal carbon tax.

In a statement released to The Herald, Cavendish Farms said it was pleased the provincial government has expanded eligibility in the Technology Innovation and Emissions Reduction regulation to include additional industries.

“This is further proof the Government of Alberta is open for business and committed to ensuring companies in Alberta can compete openly,” it says.

McCain Foods Canada also commended the government for its announcement.

“This week’s announcement is a positive development, allowing for greater consistency in how carbon emissions are treated across Canada,” McCain Foods said in response to a request for comment from The Herald. “McCain looks forward to working within the program with a strong commitment to further reducing our carbon footprint in Canada, aligned with our global goal of reducing overall CO2 emissions by 50 per cent across our manufacturing facilities by 2030.”

According to the province, those industries enrolled in the TIER program achieve the same emissions they would under the federal system, but with additional cost savings. The TIER system has already saved Alberta’s oil and gas companies nearly 90 per cent of their carbon tax costs in 2020, amounting to about $450 million, it goes on to state.

Large industrial facilities are also saving about $300 million in carbon tax a year, the province claims, under the TIER system compared to previous provincial government regulations.

The Technology Innovation and Emissions Reduction Regulation requires regulated facilities to reduce greenhouse gas emissions. The regulation applies to facilities which emit more than 100,000 tonnes of carbon dioxide. Facilities which emit less than the threshold may opt-in to the regulation, and conventional oil and gas facilities under the same ownership may be combined into a single aggregate facility. The regulation sets out high-performance benchmarks or enables the director to set facility-specific product benchmarks. To meet the emissions reduction requirement, facilities can reduce their emissions or use emission performance credits, emission offsets or pay into the regulated fund.

Regulated facilities must provide annual compliance reports and facilities that emit more than one million tonnes of carbon dioxide must also provide a yearly forecasting report.

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