Quebec’s cap and trade system for emission rights (SPEDE), more commonly known as the carbon exchange, is far from being “up to the height of the climate crisis”, denounces an environmental coalition, which calls for more ambition on the part of the Quebec government.
Not only are Quebec’s greenhouse gas (GHG) emission reduction targets insufficient, but the means used to reduce them are just as insufficient, plead the organizations Greenpeace, Équiterre, Nature Québec and the David Suzuki Foundation. , in a new memoir.
While the Government of Quebec has just tabled its draft amendment to the regulation concerning the SPEDE, which defines the rules for the free allocation of emission units for the period 2024-2030, the environmental coalition is publishing a critical analysis of the draft.
Currently, Quebec plans to reduce its GHG emissions by 37.5% compared to 1990 levels by 2030 and achieve carbon neutrality by 2050.
“These targets are far from those necessary for Quebec to do its fair share of the global climate effort,” says the coalition, which believes that Quebec should instead aim for a 65% reduction in its emissions (below 1990 levels). ) by 2030.
To achieve this, it would be necessary to “significantly strengthen” the SPEDE, argues Patrick Bonin, head of the Climate-Energy campaign at Greenpeace.
“We know that there are flaws in the SPEDE, which currently mean that it is far from functioning optimally when it is considered central by the government in its fight against climate change”, underlines he.
Strengthen the carbon exchange
The SPEDE “has not functioned optimally” in recent years, denounce the environmental organizations behind the brief. However, the present changes proposed by the government “do not make it possible to correct the situation”.
In its operation, the carbon exchange provides free allocations for emissions-intensive companies that are subject to significant competition. The purpose of these allocations is to avoid “carbon leakage” in the event that these companies choose to relocate their activities. In the modifications proposed by Quebec to the regulation concerning the SPEDE, the level of free allowances would decrease.
This is a step in the right direction, believes the coalition, which criticizes, however, that this reduction is largely insufficient insofar as it would only allow a “meager” reduction of 0.7 million tonnes of emissions – i.e. a decrease of 0.8% in current emissions from Quebec.
“We are sensitive to the reality of carbon leakage. We must avoid that. But there, under the pretext of wanting to prevent these leaks, the government is rolling out the red carpet to companies and remains much too lax, ”judge Patrick Bonin.
Moreover, the coalition of environmental organizations believes that the price of carbon aimed at large emitters is not high enough to force them to reduce their emissions.
Considering the total purchases of emission rights for the period 2024 to 2030, the average cost per metric ton of CO2 equivalent emitted for large industrial companies will be $9 over this period, the report notes. . According to Mr. Bonin, this “too low” price goes “against the very principle of SPEDE, which is to put some pressure to decarbonize the economy”.
This too “timid” reform “meets the needs of the industry rather than responding to the climate emergency”, judges the grouping of environmental organizations.