Quebec is opening its arms to Canadian provinces that would like to join its carbon exchange rather than being subject to the federal carbon pricing system, and also invites other interested states to join. This was argued by Quebec Environment Minister Benoit Charette at a conference organized by the Montreal Chamber of Commerce on Monday.
“We are confident, over the next year, to add other players. There are discussions taking place at this level,” Mr. Charette pointed out to an audience of business people who had come to attend a forum on the integration of environmental, social and governance criteria in business at the Palais. Montreal conventions. “My wish, quite sincerely, would be to seek out other Canadian provinces that would prefer our system to the federal tax,” he admitted.
In 2013, Quebec set up a cap-and-trade system for greenhouse gas emission allowances (SPEDE), before linking it to the California system the following year, as part of the Western Climate Initiative. Ontario also temporarily embarked on this system before withdrawing from it in 2018.
Today, Quebec is seeking to encourage other partners to join this Quebec scholarship – and more particularly the Canadian provinces. “From the moment there are carbon credits that must be purchased, if they are not purchased [au Québec], they are in California. So it represents a form of capital flight, in a way, “justified the minister. “I will prefer that these carbon credits be purchased first in Quebec for what is possible to do, and if not in the Canadian environment so that the Canadian economy can benefit from them,” he added.
“We have signed cooperation agreements with certain states, be it New Zealand or Costa Rica. There are various US states that have also signed notices of intent. Without giving you any secrets this morning, maybe one or two Canadian provinces as well,” said Mr. Charette.
The Minister of the Environment also praised the fact that the Quebec system is “much more affordable than the federal tax”. He also pointed out that the Quebec carbon exchange includes a cap for emissions that is gradually lowered, “which is not exactly the case with the federal tax”.
Currently, the price on carbon in the federal system is $50 Canadian. It must rise to $65 next year before reaching $170 in 2030. In Quebec, during the last auction held in May as part of the carbon exchange, emission units sold for about $39 Canadian.