Québec gives green light to carbon market; linkage with California
14 December 2012
Québec’s Cabinet has adopted the Regulation Amending the Regulation respecting a cap-and-trade system for greenhouse gas emission (GHG) allowances. The amendment is aimed at harmonizing Québec’s system with California’s as well as with those of future partners. Its adoption now makes it possible to link the Québec and California systems.
By adopting this regulatory amendment, Québec has taken a major step in pursuing the deployment of further action within the Western Climate Initiative (WCI) to create an extensive carbon market in North America.
The Secretary of the California Environmental Protection Agency, Matthew Rodriquez, and the Chairman of the California Air Resources Board, Mary Nichols, were in Québec City this past December 11 and 12 in connection with the annual meeting of the members of the Board of Directors of the WCI.
Discussions with our counterparts in California are extremely positive. I am confident that we will see a full linkage of the Québec and California markets during spring 2013 in anticipation of the first joint auction planned for August, 2013. Québec and California have agreed to work together closely so that Canadian provinces and U.S. states join the market. As a result of this agreement, Québec will be in a position to achieve its emission targets, and businesses will have an innovative and flexible tool enabling them to participate in the effort.
—Minister of Sustainable Development, Environment, Wildlife and Parks, Yves-François Blanchet
Rodriquez and Nichols applauded Québec’s adoption of the Province’s amended cap-and-trade regulation to allow for linking with California’s program.
Québec's announcement demonstrates the critical role that government can play in reducing carbon emissions and addressing climate change. Our two programs share a common objective and we look forward to coordinating our work in California with them.
—Matthew Rodriquez
California and Québec have consulted closely on development of their respective cap- and-trade programs. As a result of Québec’s action, ARB will now be requesting the Governor’s review of proposed linkage and Québec’s program as required under AB 1532.
Both Canada and Quebec have also had conversations with other cap-and-trade jurisdictions around the world as they developed their climate regulations.
On 14 November, California held its first cap-and-trade auction of carbon allowances. Covered parties begin full compliance starting 01 January 2013.
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