What if the government shuts down carbon pricing (the carbon tax)? Axe the Tax

In Alberta, the carbon pricing schedule is written into legislation at the provincial and federal level so it would require the repeal of both the Greenhouse Gas Pollution Pricing Act (GGPPA) and Emissions Management and Climate Resilience Act (EMCRA) for the value of Alberta offset credits to equal to zero.

The Technology Innovation and Emissions Reduction Regulation (TIER), of which the Alberta Emission Offset System is part of, is also a core component of Alberta’s Emissions Reduction and Energy Development Plan:

“Through Budget 2023, invest $800 million in Technology Innovation and Emissions Reduction (TIER) funding across multiple sectors over 3 years for programs that will support jobs, reduce emissions and help Albertans adapt to climate change.”

The Alberta regulatory carbon market also creates economic benefits. Between 2007-2011, over $312 million in TIER fund payments were made by large emitters and reinvested into Alberta low-carbon projects and supporting activities. Over 55 million tonnes of emissions reductions, including offset credits, have been serialized as of November 2019. Although, since there is no obligation for price disclosure for offset credit transactions, improvements to market transparency remain to be seen. 

Globally, the carbon credit market traded value was US$978.56 billion in 2022 and is expected to reach US$2.68 trillion by 2028 at a Compound Annual Growth Rate (CAGR) of 18.23% between 2023-2028. Re(source) sees the regulatory nature, stringency, and higher offset credit prices of the carbon market in Alberta as a precedent toward a more accessible, secure, reliable, and scalable emissions reduction framework that will allow us to funnel millions of dollars of offset credit revenue from the highest greenhouse gas emitting companies in Alberta into the pockets of everyday Albertans (and make installing solar for your home cheaper!).

We prioritize minimizing the risk our customers are exposed to by automating our carbon offset credit process and only claiming a fee once the offset credits are sold. Signing up with Re(source) means you do not have to pay for our service until your credits are exchanged for cash, so there is only a possibility of you receiving money and no possibility of losing money you already have. The main risk involved with participating in Re(source)’s carbon offset credit platform, as with other solar carbon offset credit platforms, is how much you will be able to receive in carbon offset payments, relative to the effects of policy changes to the the carbon pricing schedule at the federal and provincial levels, as well as market forces.

We are happy to answer your questions or discuss this topic in-depth. Look out for more content about this in the future. Meanwhile, you can book a call or send us an emailContact Us.

SOURCES
International Emissions Trading Association – The World’s Carbon Markets: A Case Study Guide to Emissions Trading

Global Carbon Credit Market: Analysis by Traded Value, Traded Volume, Segment, Project Category, Region, Size and Trends with Impact of COVID-19 and Forecast up to 2028

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