Tanwar, N, Shankar, S, & Climate Connect 2011; Ministry of Power 2012; Regan, K, & Mehta, N 2012. Scheme Description Eligibility and Additionality Baseline coverage setting The SGER is The penalty and In the For the penalty Alberta an emissions credit scheme penalty and scheme, liable Specified reduction covers all GHGs at credit entities are Greenhouse system facilities generating scheme, measured at Gas established in more than is no specific the facility Emitters Alberta, 100kt CO2-e additionality level and on an Regulation Canada in annually in test—as long emissions (SGER) 2007. It is a industrial sectors: as the intensity basis single penalty baseline is (units, tonnes and credit met or CO2-e per chemical trading scheme manufacturing exceeded, it production that allows for coal mining does not unit). a separate conventional oil matter offsets and gas the Production component. reductions extraction units are the fertilizer and are various The penalty mineral product additional. products component manufacturing produced on specifies oil Offset the facility, emissions petroleum and credits must which is reduction coal products be generated summed targets for pipeline from together to get emitters. These transportation activities that a single unit. liable entities primary metal go beyond are required to manufacturing both A facility’s reduce their utilities stated baseline emissions waste and emissions intensity to wood product regulatory. intensity value 12 per cent manufacturing. Alberta must represent below their assesses the facility’s 2003–05 In 2012, this additionality baseline included 106 during scenario. emissions facilities from 13 methodology Baselines are intensity. sectors, about development set using and 70 per cent of historical data. Liable entities industrial emissions periodically can generate and about half of during the New facilities credits. Alberta’s provincial methodology can be Facilities that emissions. review. included in the emit below trading scheme their baseline and are
Tanwar, N, Shankar, S, & Climate Connect 2011; Ministry of Power 2012; Regan, K, & Mehta, N 2012. Scheme Description Eligibility and coverage Additionality Baseline setting Specified Greenhouse Gas Emitters Regulation (SGER) The SGER is an emissions reduction system established in Alberta, Canada in 2007. It is a single penalty and credit trading scheme that allows for a separate offsets component. The penalty component specifies emissions reduction targets for emitters. These liable entities are required to reduce their emissions intensity to 12 per cent below their 2003–05 baseline emissions intensity. Liable entities can generate credits. Facilities that emit below their baseline The penalty and credit scheme covers all GHGs at facilities generating more than 100kt CO2-e annually in industrial sectors: chemical manufacturing coal mining conventional oil and gas extraction fertilizer and mineral product manufacturing oil petroleum and coal products pipeline transportation primary metal manufacturing utilities waste wood product manufacturing. In 2012, this included 106 facilities from 13 sectors, about 70 per cent of industrial emissions and about half of Alberta’s provincial emissions. Alberta In the penalty and credit scheme, is no specific additionality test—as long as the baseline is met or exceeded, it does not matter the reductions are additional. Offset credits must be generated from activities that go beyond both and regulatory. Alberta assesses additionality during methodology development and periodically during the methodology review. For the penalty scheme, liable entities are measured at the facility level and on an emissions intensity basis (units, tonnes CO2-e per production unit). Production units are the various products produced on the facility, which is summed together to get a single unit. A facility’s stated baseline emissions intensity value must represent the facility’s scenario. Baselines are set using historical data. New facilities can be included in the trading scheme and are
CCA_CFIStudyPublicReportHTMLAppendixA.docx