• 19 Dec 11

  Unwrapping Quebec's cap-and-trade regulations

  POINT CARBON ANALYSIS – Quebec’s newly approved cap-and-trade rules are geared toward a provincial emission trading program that can easily link to that of California under the WCI. With the province’s cap starting at 23.7 Mt in 2013 and ending up at 50.9 Mt in 2020, we project the program will be slightly overallocated in the first compliance period but that substantial reductions – 32 percent below BAU – will be required in the later years. The province’s forthcoming offset regulations will be a key price driver for Quebec and its WCI partner California, but we expect the two programs to link before provincial regulators work out the offset protocols. We find it likely that regulators will manage to link formally the two programs in time for joint auctions in August 2012.

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