Auction Proceeds Allocated to the Green Fund
Since December 3, 2013, the Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) has held quarterly greenhouse gas emission units auctions. All proceeds from the sales are paid to the Green Fund.
Since November 25, 2014, the auctions have been held jointly with California. Emission units from both Québec and California are entirely fungible, which means that emitters and other participants can purchase them irrespective of their country of origin.
In joint auctions, the minimum unit price is the greater of the annual minimum Quebec and California prices, expressed in US dollars. The reference conversion rate at any given auction is the Bank of Canada noon rate on the day before the sale. However, Canadian bidders can pay in either Canadian or US dollars.
As a result of this policy, auction proceeds may in part be converted from one currency to the other. Any variance in the exchange rate between the day before the auction and the day of conversion may have a minor impact on the amount paid to the Green Fund. The following table shows the amount paid to the Green Fund for each listed auction.
Total canadian dollar proceeds from the auction of greenhouse gas emission units paid to the green fund, as of March 21, 2017
(1) Joint auctions involve currency conversion for part of the proceeds. The rate and transaction fees on the date of conversion can affect the amount deposited to the Green Fund. As a result, the product of the number of emission units sold and the settlement price may slightly differ from the actual amount deposited. The actual amount deposited will be known on March 21, 2017.
(2) The increase in the number of emission
allowances offered for sale in 2015 results from the inclusion of
fossil fuel distributors on January 1, 2015.