This submission is intended to support the government’s implementation of a cap-and-trade system, and inform public debate on the detailed design of such a system in the coming year. It is organized into four sections:
1) Initial comments
2) Cap-and-trade systems
3) Québec and the Western Climate Initiative
4) Conclusion
Based on our analysis, we can conclude the following: first, that that Québec would do well under a WCI cap-and-trade program relative to other Canadian jurisdictions, and it is necessary for a relatively small market like Québec to link to a larger emissions trading system to lower its abatement costs. Second, Québec has an interest in ensuring the eligibility of agricultural offsets within the broader WCI context (with a view to generating low cost emission reductions for Québec’s needs, and for sale in the WCI-wide market).
