Quebec GHG Cap-And-Trade System Starting In January 2012

On July 6, 2011 the Minister of Sustainable Development, Environment and Parks announced that the Quebec greenhouse gas (GHG) emissions cap-and-trade system will come into force on January 1, 2012. A draft Regulation was published in the Official Gazette of Québec on July 7, 2011 and the 60-day comment period recently ended.
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The draft regulation introduces provisions whereby subjected enterprises will be obligated to cover their GHG emissions, and establishes a system to purchase, sell and trade emission allowances.

According to the current text, most manufacturers operating in Québec will be subject to the obligation to cover their GHG emissions, if they produce 25,000 metric tonnes or more CO2 equivalent annually. The Regulation will impact, in addition to other sectors, all manufacturing activities that have a North American Industry Classification System (NAICS) code beginning with 31, 32 or 33. For example, the following activities would be subject to the