Regulating Carbon Emissions in Canada

The document analyzes a proposed update to Alberta's Specified Gas Emitters Regulation (SGER) known as the "double-double" approach, which would increase the emission intensity improvement standard to 24 per cent and the price ceiling to $30. Modelling suggests this would result in a total compliance obligation of approximately 29 million tonnes in 2020, with costs for the oil sands sector estimated at $0.13 per barrel. The author recommends indexing the price ceiling to inflation, reviewing cogeneration credits, improving intensity benchmarks, and expanding coverage to facilities emitting over 50,000 tonnes annually.

• The proposed "double-double" renewal of the SGER would double the existing regulatory standard from a 12 per cent intensity improvement to 24 per cent and increase the price ceiling from $15 to $30.
• Under the double-double scenario, the total compliance obligation in 2020 is estimated at 29.3 million tonnes (Mt), consisting of 8.7 Mt in sector reductions, 15.5 Mt in offsets, and 5.2 Mt in technology fund payments.
• The average cost of compliance across all pathways under the double-double proposal is $22 per tonne, with a total annual cost of just over $600 million; for the oil sands sector, this equates to approximately $0.13 per barrel.
• The double-double SGER is projected to reduce emissions by approximately 20 per cent of Canada's remaining Copenhagen emissions gap for 2020.
• Historically, cogeneration credits and technology fund payments have accounted for about 70 per cent of SGER compliance, raising questions about the additionality of cogeneration credits.
• The author recommends four specific policy improvements: re-evaluating cogeneration credits, indexing the SGER price to cost inflation, reviewing intensity benchmarks, and lowering the coverage threshold to entities emitting more than 50,000 tonnes annually.

APA

Sawyer, D. (2014). Regulating Carbon Emissions in Canada. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/costs_emission_reductions_renewed_carbon_policy_alberta.pdf

Chicago

Sawyer, Dave. Regulating Carbon Emissions in Canada. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/costs_emission_reductions_renewed_carbon_policy_alberta.pdf.

Wikipedia

{{cite report |last1=Sawyer |first1=Dave |title=Regulating Carbon Emissions in Canada |publisher=International Institute for Sustainable Development |date=June 2014 |url=https://www.iisd.org/system/files/publications/costs_emission_reductions_renewed_carbon_policy_alberta.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sawyer2014regulating, author = {Sawyer, Dave}, title = {{Regulating Carbon Emissions in Canada}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jun, url = {https://www.iisd.org/system/files/publications/costs_emission_reductions_renewed_carbon_policy_alberta.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }