The Climate Change and Emissions Management Amendment Act of Alberta was the first law of its type to impose greenhouse gas cuts on large industrial facilities.
Companies have three ways to meet their reductions: they can make operating improvements, buy an Alberta-based credit, or contribute to the Climate Change and Emissions Management Fund.
The annual cost of compliance is estimated to be $177 million - or less than one-tenth of one per cent of Alberta's nominal GDP ($242 billion in 2006).
A facility can purchase credits from large emitters that have reduced their emissions intensity beyond their 12 per cent target.
According to the Climate Change and Emissions Management Amendment Act, funds may be used only for purposes related to reducing emissions of specified gases or improving Alberta's ability to adapt to climate change; including without limitation, the following purposes:[3]