Opinion: To build Alberta, we must protect our innovation funding
By Catie O’Neal, Calgary Herald
As the federal government looks to fast-track nation-building projects and critical infrastructure, Alberta’s experience and technical expertise in advancing major projects that balance decarbonization and economic development must be leveraged. Even more notably, Alberta is actually one of the best places to dream up new ways of developing Canada sustainably.
But the province must maintain its competitive edge by protecting and investing in its existing comprehensive innovation funding channels.
The Government of Alberta is engaging stakeholders on the Technology Innovation and Emissions Reduction program ahead of its legislated review by the end of 2026. Although there is plenty of conversation around TIER as it relates to carbon pricing, we would do better to acknowledge its support of Emission Reduction Alberta, which funds innovative technologies and the jobs that come with them across the province.
Separately, the province also provides funding for early stage technology through Alberta Innovates. Between ERA and Alberta Innovates, the province can support innovation in the energy sector from the beginning to the end of its development cycles.
As the provincial government undertakes its review, Alberta’s industries recognize that TIER might change. However, it is important to reflect on the major investment success stories that were achieved due to this program.
This support — plus Alberta’s business-friendly environment, natural resources, existing technical expertise and well-established regulatory framework — makes the province an obvious destination of choice for clean tech project developers and innovators.
With all the uncertainty facing innovators around the world, this is a great time to celebrate their contributions to the province.
For example, since its inception, funds from the TIER system have enabled ERA to invest more than $1 billion into Alberta projects, many of which would not have happened without it. This funding has created an innovation ecosystem. It has helped close the funding gap faced by all new technologies, derisked and leveraged private-sector investment, and shown the international community that Alberta is open for business.
While other provinces struggle with piecemeal approaches to economic diversification, Alberta has created a self-sustaining model where industry payments fund the very innovations that strengthen industry competitiveness. This approach has allowed the province to support jobs and economic activity without taxpayer dollars — a fiscally responsible strategy that any government should be proud to champion.
From 2023 to 2024 alone, ERA invested approximately $170 million, unlocking 49 new projects valued at $802 million that are providing more than 3,200 jobs. From ERA’s inception to now, its economic effect has surpassed $7 billion.
Alberta Innovates and ERA are also key to newer industries, especially those developing capital-intensive infrastructure projects that require years of innovation before becoming commercially viable.
Losing innovation funding would leave a particularly devastating gap for industries such as Alberta’s emerging permanent carbon removal sector, where companies are developing technologies to extract carbon dioxide directly from the atmosphere, and which is just beginning to scale up operations across the province.
Carbon removal technologies such as direct air capture, biomass carbon removal and carbon mineralization rely heavily on early funding support as they work to commercialize. They are worth our investment as they form the foundation of what could become Alberta’s next major export industry, with global carbon removal markets projected to reach hundreds of billions annually by 2050.
Whatever the future of TIER looks like, Alberta must find a way to continue supporting innovation funding to diversify our economy, attract critical investment and secure our place as a global leader in energy innovation. As shifting political winds cause investment uncertainty around the globe, now is the time for Alberta to seize the moment and offer a safe harbour for these investment dollars.
Having more to offer is always better.
