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Regulatory amendments primarily concerning offset credits

Public consultation from March 3 to April 17, 2021

The offset credit component of the Québec cap-and-trade system for greenhouse gas emission allowances enables promoters to carry out projects on a voluntary basis to reduce GHG emissions or remove GHGs from the atmosphere that stem from activity sectors or sources other than those subject to compliance obligations of the cap-and-trade system. Its objectives are to reduce compliance costs borne by emitters without compromising the system’s environmental integrity, promote emission reductions in non-targeted sectors and encourage investment in low-carbon projects in Québec.

The regulatory provisions relating to offset credits are currently contained in Chapter IV of Title III of the Regulation respecting a cap-and-trade system for greenhouse gas emission allowancesThis hyperlink will open in a new window. and offset credit protocols are in Appendix D.

The draft Regulation to amend the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances aims to simplify the regulatory update of the offset credit component by removing most of the offset credit provisions from the current Regulation, including protocols, and incorporating them into regulations made by the Minister of the Environment and the Fight Against Climate Change. Some amendments are made to provisions remaining in the Regulation and those placed in regulations made by the Minister.

The draft Regulation removes the exclusion for the biomass and biomass fuel component of fuels distributed by emitters when calculating the threshold that renders fuel distributors subject to the Regulation, and refers to Protocol QC.30 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphereThis hyperlink will open in a new window..

In addition to the amendments proposed to the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances, two draft regulations made by the Minister are also part of the public consultation:

  • the draft Regulation respecting landfill methane reclamation and destruction projects eligible for the issuance of offset credits, which replaces Protocol 2 in force with certain amendments;
  • the draft Regulation respecting halocarbon destruction projects eligible for the issuance of offset credits, which replaces Protocol 3 in force with certain amendments.

The three draft regulations are published in the Gazette officielle du Québec for a 45-day public consultation.

Additional information may be obtained by contacting:

Pierre Bouchard, Coordinator
Offset Credits Section
Carbon Market Division
Ministère de l’Environnement et de la Lutte contre les changements climatiques
pierre.bouchard@environnement.gouv.qc.ca

Those wishing to provide input on the draft regulations should submit their comments in writing by April 17, 2021, to:

Kim Ricard, Assistant Director of Carbon Market Operations
Carbon Market Division
Ministère de l’Environnement et de la Lutte contre les changements climatiques
Édifice Marie-Guyart, 5e étage, boîte 30
675, boulevard René-Lévesque Est Québec (Québec) G1R 5V7
kim.ricard@environnement.gouv.qc.ca

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