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Draft Regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances

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In December, 2011, the Government of Québec enacted the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances, CQLR c Q-2, r 46.1. The cap-and-trade system for greenhouse gas emission allowances has been in force since January 1, 2013, and has been linked to the California system since January 1, 2014.

The Québec-California-Ontario link

In May, 2016, Ontario adopted its own cap-and-trade system for greenhouse gas emission allowances law and regulation. In effect as of July 1, 2016, they enabled the Ontario Carbon Market to start on January 1, 2017. The Ontario market’s link to the joint Québec-California market in the framework of the Western Climate Initiative (WCI) regional carbon market is planned for January 1, 2018.

To that end, the Draft Regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances has the following objectives:

  • Establish the 2021-2023 rules for allocating free emission units
  • Enable the Ontario Carbon Market to link to the Québec and California markets, planned for January 1, 2018
  • Introduce changes to harmonize the Regulation with recent amendments to California regulations and the recently adopted Ontario regulations, particularly with respect to government rules covering sales by mutual agreement by the Minister, and easing the administrative burden on covered emitters
  • Amend some of the provisions of the current Regulation in advance of the first tripartite auction in 2018
  • Allow for the registration of emitters not  required to register in the cap-and-trade system, and detail the rules that apply to them
  • Propose amendments to offset credits, particularly with respect to credit issuance and project report auditing provisions
  • Propose amendments to offset credit protocols, particularly with respect to the methods used to calculate greenhouse gas emissions under the reference scenario of the protocol for the destruction of CH4 in landfills.

The draft regulation is published in the Gazette officielle du Québec and includes a 45 day public consultation.
Additional information may be obtained by contacting:

Diane Gagnon, coordonnatrice
Direction du marché du carbone
Ministère du Développement durable, de l’Environnement
et de la Lutte contre les changements climatiques
Telephone: 418-521-3868, ext. 4605
Email: diane.gagnon@mddelcc.gouv.qc.ca
Fax: 418-646-4920

Parties interested in submitting comments on the draft regulation should submit them in written form to the following individual by October 15, 2017:

Jean-Yves Benoit, directeur
Direction du marché du carbone
Ministère du Développement durable, de l’Environnement
et de la Lutte contre les changements climatiques
Édifice Marie-Guyart, 1er étage, boîte 31
675, boulevard René-Lévesque Est Québec (Québec) G1R 5V7
Fax: 418-646-4920
Email: Jean-Yves.Benoit@mddelcc.gouv.qc.ca

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