How Alberta’s TIER Regulation works and how to access TIER funding

By GrantHub Research Team · · Lire en français

How Alberta’s TIER Regulation works and how to access TIER funding

If your Alberta business produces significant greenhouse gas emissions, the Technology Innovation and Emissions Reduction (TIER) Regulation affects both your compliance costs and your access to funding. TIER is Alberta’s industrial carbon pricing system, and it also creates a pool of money that supports emissions‑reduction projects across the province. Understanding how Alberta’s TIER Regulation works and how to access TIER funding can help you lower compliance risk while offsetting project costs with non‑repayable support.


How Alberta’s TIER Regulation works

The Technology Innovation and Emissions Reduction (TIER) Regulation is a provincial rule managed by the Government of Alberta. It applies to large industrial facilities and sets performance targets for emissions instead of a flat carbon tax.

Who TIER applies to

TIER generally applies to:

  • Large industrial facilities that emit 100,000 tonnes or more of CO₂e per year
  • Facilities that voluntarily opt in because they emit 10,000 tonnes or more of CO₂e per year

These facilities include operations in oil and gas, electricity generation, manufacturing, mining, and other sectors with high emissions.

How compliance works

Under the TIER Regulation, facilities are given an emissions benchmark. This is a target based on:

  • Their own past performance, or
  • Sector‑specific emissions intensity standards (which means the average amount of emissions produced for each unit of product in that industry)

If your facility’s emissions are below the benchmark, you earn emissions performance credits. These credits are rewards you get for reducing emissions more than required. If emissions are above the benchmark, you must make up the difference by:

  • Submitting emissions performance credits,
  • Using approved emissions offsets (reductions made elsewhere), or
  • Paying into the TIER Fund at the regulated carbon price

What the TIER Fund is

Money paid into the TIER Fund does not go into general government revenue. Instead, it is used for Alberta‑based programs that:

  • Reduce greenhouse gas emissions
  • Support clean technology development
  • Improve industrial efficiency and competitiveness

This is the main source of TIER funding opportunities.


Who can access TIER funding

TIER is not a single grant you apply to directly. Instead, TIER funding flows through several provincial funding programs and competitive calls supported by the TIER Fund.

Funding is typically available to:

  • Alberta‑based industrial operators
  • Energy and manufacturing companies
  • Clean technology developers
  • Research organizations partnering with industry

Eligibility depends on the specific funding program, not the TIER Regulation itself.


How to apply for TIER funding

Types of projects TIER funding supports

TIER‑supported programs commonly fund projects such as:

  • Industrial emissions reduction and efficiency upgrades
  • Carbon capture, utilization, and storage (CCUS) projects
  • Methane reduction technologies
  • Clean fuel and hydrogen development
  • Process improvements that reduce emissions intensity (meaning the amount of emissions for each unit of product)

Most TIER‑supported funding is non-repayable, but you must sign an agreement and report on your project.

How applications work

There is no standing TIER application portal. Instead:

  • The Government of Alberta launches funding calls as needed
  • Some funding is delivered through partner agencies and ministries
  • Each call has its own eligibility rules, deadlines, and funding caps

Finding the right program can be challenging, especially when TIER‑supported calls open with short application windows. GrantHub tracks new funding calls and helps Alberta businesses stay up to date on opportunities as they are announced.


Common mistakes to avoid

  1. Assuming TIER funding is automatic
    Paying into the TIER Fund does not guarantee access to funding. All programs are competitive.

  2. Waiting until a funding call opens to plan
    Most TIER‑supported programs require technical studies, emissions modelling, or partner agreements.

  3. Ignoring stacking limits
    Some TIER‑supported grants limit how much government funding you can stack with other provincial or federal programs.

  4. Missing reporting obligations
    Approved projects often require detailed emissions and financial reporting over several years.


Frequently Asked Questions

Q: What is the Technology Innovation and Emissions Reduction (TIER) program?
TIER is Alberta’s industrial emissions reduction and carbon pricing framework. It sets emissions benchmarks for large facilities and uses compliance payments to fund emissions‑reduction programs.

Q: Who can access funding related to the TIER Fund?
Funding is typically available to Alberta‑based industrial businesses, energy companies, and clean technology developers, depending on the specific funding call.

Q: Is TIER funding repayable?
Most TIER‑supported funding opportunities are offered as non‑repayable grants, although recipients must meet performance and reporting requirements.

Q: What are emissions performance credits and emissions intensity standards?
Emissions performance credits are rewards for facilities that release less pollution than their set target. Emissions intensity standards are rules about how much pollution is allowed for each unit of product made.

Q: What types of projects are supported under TIER?
Projects focus on emissions reduction, clean technology, industrial innovation, and efficiency improvements that lower greenhouse gas intensity.

Q: Is the TIER program currently open?
The TIER Regulation is ongoing. Funding availability depends on active grant programs and calls supported by the TIER Fund.

If you want to see which TIER‑supported programs are currently accepting applications, GrantHub’s searchable database is a helpful resource for Alberta businesses.


  • Innovation Vouchers vs Traditional Grants for Alberta Startups
  • How to stack grants and loans without violating funding rules
  • What Business Expenses Are Eligible Across Canadian Grants and Loans?

Next steps

Alberta’s TIER Regulation affects more than compliance — it creates real funding opportunities for businesses investing in emissions reduction. The challenge is finding the right TIER‑supported programs when they open and confirming your eligibility early. Staying informed about new funding calls and preparing your project details in advance can help you take advantage of these programs. GrantHub helps Alberta businesses monitor active funding calls tied to TIER and other clean technology programs, so you can act before deadlines close.


Was this article helpful?

Rate it so we can improve our content.

Canada Proactive Disclosure Data

400,000+ Companies Like Yours Have Received Billions in Grants

The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.