A Québec-Regulated Carbon Market Around the Corner!

Beginning in 2013, air releases of greenhouse gases (GHG) could be expensive for large industries in Québec. Indeed, on July 7, 2011, the Québec government released a draft regulation respecting a cap-and-trade system for greenhouse gas emission allowances (Draft GHG Regulation), which proposes a system requiring large emitters of greenhouse gases to register and cover each of their GHG emissions through emission allowances including those purchased from the Québec government and from other covered emitters or participants in the system (the "cap-and-trade system"). As of 2013, the proposed system targets major emitters from specific sectors including mining extraction, electric power generation and manufacturing, and expands to refineries and fuel importers as of 2015.