Alberta's provincial government is cutting the amount of carbon large industries can emit.
A new framework of incentives, regulations and levies was announced Wednesday, and the province says it will result in Alberta reducing its greenhouse gas emissions by 50 megatons by 2030.
The new framework includes the Carbon Competitive Incentive (CCIs) Regulation, which will replace the existing Specified Gas Emitters Regulation on New Year's Day.
Any facility that emitted 100,000 tonnes or more of carbon dioxide equivalent (CO2e) greenhouse gases in 2003 or any subsequent year will be subject to the CCI regulation.
The program sets benchmarks for emissions per product. Companies below a given benchmark generate credits, while those above must pay $30.00 per tonne.
The province expects revenues to reach $800 million per year by 2021.
Alberta Environment Minister Shannon Phillips says the CCI scheme compliments a plan unveiled earlier this week to invest $1.4 billion to drive innovation, boost the energy industry and diversify the economy.
That plan includes $440 million for oilsands innovation, and $240 million for energy-efficiency projects in large-scale industrial, agricultural and manufacturing operations.
Another $225 million will be aimed at driving innovations that reduce greenhouse gas emissions across a wider range of industries.
