Quebec Adopts New Cap‐And‐Trade System For Greenhouse Gas Emission Allowances

On December 15, 2011, Pierre Arcand, Quebec's Minister of Sustainable Development, Environment and Parks, announced the adoption of the Regulation respecting the cap‐and‐trade system for greenhouse gas emission allowances, which implements the first cap‐and‐trade system for greenhouse gas emission ("GHG") allowances in Canada. The regulation came into force on January 1, 2012.

This regulation follows the draft regulation, which was adopted on July 7, 2011. It is based on the rules established by the Western Climate Initiative ("WCI"), which is composed of six U.S. states, as well as Ontario, British‐Columbia, Manitoba and Quebec. Quebec adopted this regulation closely after California adopted its regulation implementing a cap‐and‐trade system for GHG emission on October 20, 2011, a program that will also begin on January 1, 2013.