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Draft regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances ( July 2014 )

 

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Draft regulation

News release

Economic impact study on the  Draft regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances (French)

In force since December 2011, the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances was amended in December 2012 and December 2013, in particular to enable linking the Québec and California carbon markets on January 1, 2014 and to list the fossil fuel and combustible distributors that will be governed by the system in 2015.

As the California and Québec markets are now officially linked, regulatory harmonization between the partners needs to be constantly ensured. In recent months, both governments have worked in close collaboration on suggested amendments to clarify various joint operational procedures of the system. The amendments will enable, among other things, a joint California–Québec auction to be held in November 2014. The Draft regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances introduces amendments to ensure harmonization with recent California regulatory changes and adds a new offset credit protocol. It will be subject to a public consultation from July 24 to September 21, 2014.

The Draft regulation includes a variety of amendments that cover the information required to register in the system, make an emission allowance transaction and take part in an emission unit public auction or B-to-B sale. It also details various requirements and procedures in regard to greenhouse gas emission coverage and the free allocation of emission units, particularly in cases where an emitter has made changes to its emissions report.

The Draft regulation also anticipates detailed functional changes to the provisions that relate to public auctions and B-to-B sales of emission units. It also introduces adjustments to applicable auction purchase limits, the majority of which will come into force on January 1, 2015.

The Draft regulation amends the provisions regarding offset credits in order to simplify project registration procedures and describes the applicable procedure for recovering offset credits that have been cancelled by a partner. Finally, the Draft regulation revises the protocol concerning ozone-depleting substances in order to qualify the destruction of certain refrigerants contained in cooling, freezing and air-conditioning units for offset credits.

Analysis reveals that the proposed amendments will not add any significant burdens for emitters and participants.

For additional information, please contact:

Ms. Kim Ricard, Eng., Bureau des changements climatiques
Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques
Telephone: 418-521-3868, ext. 4893
E-mail: kim.ricard@mddelcc.gouv.qc.ca
Fax: 418-646-4920.

Interested parties may submit their comments until September 21, 2014 to:

Mr. Jean-Yves Benoit, Senior Economist and Carbon Market Director, Bureau des changements climatiques
Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques
Édifice Marie-Guyart, 675, boulevard René-Lévesque Est,6e étage, boîte 31
Québec (Québec) G1R 5V7
E-mail: jean-yves.benoit@mddelcc.gouv.qc.ca


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