Taking Action Against Climate Change with Emissions Reduction Alberta

As the climate conversation continues to expand in the public space, ambitious goals for reducing emissions are being communicated at regional and international levels. The burning of fossil fuels has substantially contributed to the build up of greenhouse gases (GHG) in our atmosphere, resulting in the climate changes currently impacting major industries, ecosystems, weather patterns, natural resources and biodiversity around the world. According to Climate Change in Alberta, “97% of climate scientists now agree that human activity is responsible for most temperature increases over the past 250 years.”

In Alberta, over 50% of GHG emissions are the result of “industrial, manufacturing and construction activity, as well as producing the electricity we consume … the remainder comes from heating our homes and businesses, transportation and from agriculture, forestry and municipal waste” (1). As a part of a multi-level provincial strategy aimed at reducing greenhouse gas emissions in Alberta, the government currently partners with various organizations and funds a number of programs designed to accelerate emissions reduction initiatives and technology development.

One Alberta organization that has played a significant role in furthering emissions reduction in our province for more than a decade is Emissions Reduction Alberta (ERA), based in Edmonton.

Established in 2009, Emissions Reduction Alberta “takes action on climate change and supports economic growth by investing in the pilot, demonstration and deployment of clean technology solutions that reduce GHGs, lower costs and attract investment, and create jobs in Alberta.” For more than 10 years, ERA has been facilitating Alberta’s transition to a low carbon economy by supporting and furthering the most innovative approaches to emissions reduction.

“Alberta’s industries have ambitious goals around emissions reductions that can’t be achieved without deploying new technology,” says Steve MacDonald, CEO of Emissions Reduction Alberta, “Our goal is to identify and accelerate the innovation Alberta needs to grow the economy and cut emissions.”

Steve MacDonald – CEO of Emissions Reduction Alberta

ERA’s funding comes from the carbon price paid by large final emitters in Alberta. With this funding, ERA operates a challenge structure that calls innovative companies to respond to pertinent industry challenges with original solutions. “Challenges are always well over-subscribed,” says MacDonald. “This gives us the ability to really select the best of the best and get a good understanding of the range of ideas that are out there.”

To date, ERA has invested $607 million in the development of 183 unique projects dedicated to reducing emissions across various industries. ERA funding is leveraged and for every dollar invested by the organization, another $6.40 is invested by industry, innovators and other project funders. As a result, the total value of these projects is over $4 billion. ERA estimates this will lead to a total reduction of 34,800,000 tonnes of CO2e by the year 2030.

In October 2019, ERA announced their Natural Gas Challenge, a campaign committed to improving cost competitiveness and reducing emissions in Alberta’s natural gas sector. On July 21, 2020, ERA pledged $58.4 million to the 20 winning projects, valued at over $155 million. According to ERA, these projects will create 760 new jobs and, “if successful, these technology innovations will lead to cumulative GHG reductions of almost one million tonnes of CO2e by 2030 – equivalent to the GHG emissions from 750,000 passenger vehicles driven for one year.”

Moving forward, the ERA expects to see the first round of Expression of Interest for their latest $40 million Food, Farming and Forestry Challenge by August 27, 2020. In the meantime, the organization will continue to focus on aiding Alberta’s economic recovery through diversification and job creation, and the pursuit of innovation.

“We are supporting the actions required to help Alberta achieve its economic and environmental goals,” says MacDonald. “Our investments are making a real difference; one that is fundamental to Alberta’s future success. From incremental change to game-changers, we are developing the solutions Alberta and the world need.”

To learn more about Emissions Reduction Alberta, visit https://eralberta.ca.

For more stories, visit Todayville Calgary.

Up Next

There’s Just So Many Inexplicable Contradictions Within Canada Alone

Don't Miss

New Fairview Pump Track is the First of its Kind in Calgary

Meghanne Uptigrove

Follow Author

Volunteer with Big Brothers Big Sisters of Calgary and Area

Alberta / 4 years ago

Raising the Bar and Drawing the Line – Men for the Eradication of Violence Against Women

Alberta / 4 years ago

Violence Against Women is a Crisis in Every Single City

Alberta

Albertans still waiting for plan to grow the Heritage Fund

Published on January 3, 2025

Todayville

From the Fraser Institute

By Tegan Hill

In February 2024, the Smith government promised to share a plan to grow the Heritage Fund—Alberta’s long-term resource revenue savings fund—with the public before the end of 2024. But 2025 is upon us, and Albertans are still waiting.

The Lougheed government originally created the Heritage Fund in 1976/77 to save a share of the province’s resource wealth, including oil and gas revenues, for the future. But since its creation, Alberta governments have deposited less than 4 per cent of total resource revenue in the fund.

In other words, for decades successive Alberta governments have missed a golden opportunity. When governments make deposits in the Heritage Fund, they transform onetime (and extremely volatile) resource revenue into a financial asset that can generate more stable earnings over time. Eventually, the government could use annual income from the fund to replace volatile resource revenue in the budget.

Historically, however, rules that would have helped ensure the fund’s growth (for example, a requirement to deposit 30 per cent of resource revenue annually) were “statutory” rather than “constitutional,” which meant Alberta governments could easily disregard, change or eliminate these rules once they were no longer convenient.

And they did. The government changed that 30 per cent requirement to 15 per cent by 1982/83, and after an oil price collapse, eliminated it entirely in 1987/88. Due to a lack of consistent deposits, paired with the real value of the fund eroding over time due to inflation, and nearly all fund earnings being spent, the Heritage Fund is expected to be worth less than $25 billion in 2024/25.

Again, while Premier Smith has promised to grow the fund to between $250 billion to $400 billion by 2050, we’ve yet to see how she plans to do that. Whatever plan the government produces, it should heed lessons from other successful resource revenue savings fund such as Alaska’s Permanent Fund.

The Alaska government created its fund the same year Alberta created the Heritage Fund, but Alaska’s fund is worth roughly US$80 billion (or C$113 billion) today. What has the Alaska government done differently?

First, according to Alaska’s constitution, the state government must deposit 25 per cent of all mineral revenues into the fund each year. This type of “constitutional” rule is much stronger than a “statutory” rule that existed in Alberta. (While Canada does not have separate provincial constitutions, it’s possible to change Canada’s Constitution for province-specific measures.) Second, the Alaska government must set aside a share of the fund’s earnings each year to offset the effects of inflation—in other words, “inflation-proof” the principal of the fund to preserve its real value. And finally, the government must pay a portion of fund earnings to Alaskan citizens in annual dividends.

The logic of the first two rules is simple—the Alaskan government promotes growth in the fund by depositing mineral revenue annually, and inflation-proofing maintains the fund’s purchasing power. But consider the third rule regarding dividends.

The Alaska government created the annual dividend, paid out annually to Alaskans, to create political pressure for future governments to responsibly maintain the fund. Because citizens have an ownership share in the fund, they’re more interested in the state maximizing returns from its resource wealth. This has helped maintain and reinforce robust fiscal rules that make the Permanent Fund successful.

Based on this success, if the Smith government began contributing 25 per cent of resource revenue to the Heritage Fund and inflation-proofed the principal, it could pay each Albertan a total dividend between roughly $600 to $1,100 from 2024/25 to 2026/27, or roughly $2,300 to $4,400 per family of four. And as the fund grows, so would the dividends.

Almost one year ago, the Smith government promised a new plan for the Heritage Fund. When the plan is finally released, it should include a constitutional requirement for consistent contributions and inflation-proofing, and annual dividends for Albertans.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Alberta

Wonder Valley – Alberta’s $70 Billion AI Data Center

Published on January 3, 2025

Todayville

From the YouTube page of Kevin O’Leary

Interview with Kyle Reiling, Executive Director of the Greenview Industrial Gateway.

“This is the only place on earth that can do something this scale”

When Kevin O’Leary heard Alberta Premier Danielle Smith reveal just how much energy Alberta has, he knew Alberta has the solution for the coming explosion in energy consumption.

Kevin O’Leary: The demand for AI is skyrocketing—and America is out of power. Enter Alberta, with abundant natural gas and a bold premier. I’m raising $70 billion to create the world’s lowest-cost, highest-efficiency data center. Hyperscalers like Tesla, Microsoft, and Google need it, and we’re making it happen. This is how you lead the AI revolution.