Cap-And-Trade Regulations Come Into Force In Quebec

As Canada announced its withdrawal from the Kyoto Protocol in late December, 2011 and amid much discussion about the future of Canadian climate policy, January 1, 2012 marked the coming into force of Quebec's Regulation respecting the cap-and-trade system for greenhouse gas emissions. British Columbia, Ontario and Manitoba, who along with Quebec are all members of the Western Climate Initiative (WCI), have all announced plans to introduce cap and trade programs (and are currently at different stages of legislative progress on these promises), but Quebec continues to lead on implementation and will almost surely become the first province with an enforced cap-and-trade program.

Designed to integrate with California's implementation of a cap-and-trade program under the WCI, the first year of the program is 'transitional', giving emitters an opportunity to familiarize themselves with the system and buy and sell greenhouse gas emission credits voluntarily, before emission