On May 27, 2026, the Government of Alberta released a draft update to the Quantification Protocol for Carbon Dioxide Capture and Permanent Geologic Sequestration. This updated protocol replaces the outdated 2015 version, which only applied to deep saline aquifers. The new draft expands eligible carbon storage options by integrating modern carbon dioxide removal (CDR) pathways and introducing detailed accounting requirements for carbon capture, utilization, and storage (CCUS) projects, thereby accommodating a wider range of geologic configurations and engineering practices.
Under the revised framework, permanent carbon sequestration can occur in several approved underground formations, including depleted oil and gas reservoirs. However, the protocol still excludes carbon dioxide used for enhanced oil recovery and traditional acid gas injection from standard natural gas processing operations. The framework also allows Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS) projects to generate a new class of “Removal Credits” under Alberta’s Technology Innovation and Emissions Reduction (TIER) system. The draft clarifies that these removal credits currently receive no additional compliance value under TIER.
The protocol also establishes new requirements for quantifying and verifying the biogenic share of carbon dioxide streams. To prevent double counting of stored carbon, it requires strict contract verification, transparent data sharing, and reconciliation processes between capture facilities and storage operators.
The draft also updates the rules to reflect the growing use of shared CCUS infrastructure. The new framework allows different companies to participate in separate parts of the process through shared transportation systems and centralized storage hubs, allowing multiple industrial facilities to send captured carbon dioxide to the same sequestration site.
To support long-term investment in large industrial decarbonization projects, the protocol extends the crediting period for eligible sequestration projects to a standard twenty-year baseline offset crediting period, with project developers eligible to apply for five-year renewals if they continue to meet updated permanence requirements. The draft also introduces an optional liability management framework and a shared insurance mechanism to address future carbon storage reversals or leaks.
Potential Implications for TIER
The protocol reflects Alberta’s adoption of new technologies and the shift away from outdated CCS technologies toward new CDR pathways driven by technological advancements over the years. By leveraging Alberta’s underground storage capacity, the province is also paving the way for greater investment in CCS and carbon removal projects across Alberta. The protocol’s clear accounting system for CDR technologies demonstrates how Alberta is preparing to support the growth of these projects while strengthening the overall carbon management framework under TIER. Since removal credits are not currently recognized under compliance pathways, they may instead find greater relevance within voluntary carbon markets. Furthermore, the introduction of optional liability management is designed to provide greater certainty and assurance to project developers by helping manage long-term reversal risks.
Overall, the draft protocol represents a significant development in Alberta’s CCS and carbon removal framework and signals a broader evolution from traditional industrial CCS projects toward a more comprehensive carbon management system capable of supporting DAC, engineered removals, shared sequestration hubs, and integrated transport and storage infrastructure.
Next Steps:
The draft is open for a 30-day public comment period until June 26, 2026.
ClearBlue is actively monitoring these developments. For more information regarding ClearBlue’s advisory services or market intelligence coverage, please contact us.