Climate Change and Emissions Management Fund Credits (Fund Credits) purchased at a cost of $15 per tonne of CO2e to a maximum of the facility’s compliance obligations. This cost is expected to increase over time. Note that, unlike EPCs or Offset Credits, Fund Credits cannot be traded or banked for future compliance periods.
Facilities must submit sufficient credits such that their Net Emissions Intensity (NEI), which is the Total Annual Emissions (TAE) minus the purchased credits as a fraction of the annual production, is equal to the NEIL. Note that credits from each of the three true-up options listed above are assessed equally at one tonne of CO2e per Credit being submitted.
Facilities that reduce their annual emissions intensity below their NEIL are eligible to request EPCs, which can be banked for future use at the same facility or traded/sold to other Alberta facilities that have not met their reduction targets. Emission Performance Credits must be serialized by Alberta Environment before they can be used as a compliance option.