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Back You are here: Home Business Carbon Market Quebec sets up carbon market for 2013

Carbon Market

Quebec sets up carbon market for 2013

Quebec is making strides in their efforts to curb carbon emissions with the announcement that a regulation setting up a cap-and-trade system for greenhouse gas emission allowances has been adopted by the Cabinet.

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“The cap-and trade system for greenhouse gas emissions allowances (SPEDE) is a major advance in the fight against climate change,” said Yves-Francois Blanchet, Quebec’s minister of sustainable development, environment, wildlife and parks.

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Companies that annually produce more than 25,000 tonnes of greenhouse gases will be required to bring down their annual emissions. In order to help them do so, they may buy carbon offsets from other companies or trade amongst themselves.

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The new scheme is set to be implemented as of January 1, 2013, with the initial price for a tonne of carbon emissions set at $10.

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By adopting this regulatory amendment, Quebec has also taken a step in pursuing the deployment of further action within the Western Climate Initiative to develop an extensive carbon market in America.

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The amendment will harmonize Quebec’s system with California’s making it possible to link the Quebec and Californian carbon markets as well as those of future partners.

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“Europe, China, Australia and Japan are working in this direction. Quebec and California are now leaders in this endeavor,” said Mr. Blanchet.

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The announcement comes at the heels of an annual meeting of the members of the board of directors of the WCI. During the meeting, Mr. Blanchet and Matt Rodriquez, secretary of the Californian Environmental Protection Agency discussed the setting up of a process for broadening the continental scope of the SPEDE.

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“I am confident that we will see a full linkage of the Quebec and Californian markets during spring 2013,” said Mr. Blanchet.

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Plans are underway for the first joint auction for the two markets, set for August, 2013. – K. Jalbuena

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