Alberta is facing fierce competition in the global race for low-carbon investment. A low-cost, low-risk financial instrument called a carbon contract for difference could help Alberta incentivize new investment in low-carbon technologies, like sustainable aviation fuels, hydrogen production, and carbon capture and storage (CCUS).
 

The Low-Carbon Playbook builds on the Creating a Canadian Advantage report from the Transition Accelerator and Clean Prosperity by focusing on Alberta. The working paper compares policy-based incentives between Alberta and US states for investment in nine low-carbon technologies, and proposes options to close the incentive gaps that Alberta faces as a result of generous subsidies in the 2022 US Inflation Reduction Act.
 

Now is the time to maximize Alberta’s ability to attract low-carbon investment. By developing a comprehensive low-carbon industrial strategy based on the principles outlined in Alberta’s Emissions Reduction and Energy Development Plan (ERED), and implementing CCfDs as a low-cost, low-risk tool for providing investment certainty, Alberta can help secure its place in the emerging clean-energy economy.

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Cite this document:
Cite as: Frank B., Sweet A., and Allan B. (2023). The Low-Carbon Playbook: Policies to foster Alberta’s competitiveness in a decarbonizing world. Transition Accelerator and Clean Prosperity. Version 1.1.