Implication of Québec in the development of a North-American carbon market Ms Michele Fournier Senior Policy Advisor Ministry for Sustainable Development,

Implication of Québec in the development of a North-American

carbon market

Ms Michele FournierSenior Policy AdvisorMinistry for Sustainable Development, Environment and Parks, Québec

IIIe World Forum of Regions on climate change,

Montevideo, April 22nd, 2010

OutlineOutline

Quebec and Climate Change Who are we? Major policies to adress climate change Carbon Levy

Partnerships towards a North Amercian Carbon Market– Regional Initiatives– International Links

Conclusion: What are the prospects for the future ?

Quebec and Climate ChangeQuebec and Climate Change

Who are we?Who are we?

Québec: one of the 10 canadian provinces

Population: 7,5 millionsmostly french speaking (about 80%)

Large Territory (1,6 Mkm2) with low population density (4,6 persons/km2)

Cold in winter (-5˚C to -30°C) and temperate in the summer (18˚C to 30˚C)

Legislative powers: energy, natural resources, agriculture, transportation, environment, land use planning, education and health.

GHG emission profileGHG emission profile

World leader in renewable energy: 95% hydro and wind.

2008: 82,0 Mt (1% under 1990) 10,6 t CO2/capita

GHG emissions decline by 8% from 2004 to 2008

Industry: 13% below 1990 (2008)

Major GHG contributor: Transportation

2007

Major Policies to Address Climate ChangeMajor Policies to Address Climate Change

Public Transit

Mitigation and Adaptation

Renewable Energy and Energy Efficiency

20062006

2012 Objective : 6% below 2012 Objective : 6% below 19901990

16 programs : transportation, energy efficiency, buildings, landfill gases, agriculture, industry, biofuels, cities.

Involves the implication of 14 ministries and organisms

4500 MW of new wind and 4500 MW of new hydro projects for 2015

Energy Efficiency : 3,6 million PET by 2015 Regulation: Speed limitation device for

trucks, capture and flaring of biogas, tailpipe standard, new building code 2010, cap & trade 2012

Fiscal measures: hybrid and electrical cars/ liquid natural gas trucks

Carbon LevyCarbon Levy

200 M$ per year over 6 years (1,2 MM$ CAN) Based on the carbon content of fuels. Rate adjusted annually ($/t CO2e) Approximately 0,008 $ per litre of gas Application:

Refiners, importers, distributors, producers.Natural gas, gas, diesel, propane, fuel oil, coke, coal

Levy deposited in the Green Fund

Partnerships towards a Partnerships towards a North Amercian Carbon MarketNorth Amercian Carbon Market

The Climate Registry

Regional Greenhouse Gas Initiative (RGGI)

Western Climate Initiative (WCI)

ICAP

The Climate RegistryThe Climate Registry

Non Profit Collaboration: States, Provinces, Territories and Native Sovereign Nations

Membres: Industries, Public Organizations and NGO’s

Goal: to develop consistent and transparent standards to calculate, verify and publicly report greenhouse gas emissions into a single registry

3 major activitiesQuantification ProtocolsReporting System - Climate Registry

Information System (CRIS) Support Mandatory Reporting

Info: www.theclimateregistry.org

Regional Greenhouse Gas Regional Greenhouse Gas InitiativeInitiative

www.rggi.orgwww.rggi.org

RGGI: 10 North-eastern and Mid-atlantic States Connecticut, Delaware, Maine, New Hampshire, New Jersey, New

York,Vermont, Maryland, Massachusetts and Rhode Island Canadian observers : Québec, Ontario et 4 maritime provinces

Goal: 2009-2014: Cap CO2 from Electricity Generation Utilitiess ( 25 MW)

to 1990 level 2015-2018: 2,5 % annual reduction to reach 10 % below 1990 in 2018

Auction: majority of allowances (7 auctions so far) Revenues: to invest in clean energy, energy efficiency

and clean technologies. Average Price: 2,80$/ t CO2 éq. (US short tons) ~ 580

M$ US since 2008

Western Climate InitiativeWestern Climate Initiative

PartnersPartnersArizonaArizonaBritish British ColumbiaColumbiaCaliforniaCaliforniaManitobaManitobaMontanaMontanaNew MexicoNew MexicoOntarioOntarioOregonOregonQuébecQuébecUtahUtahWashingtonWashington

Four Canadian Four Canadian ProvincesProvinces79 % of Canadian Pop. 79 % of Canadian Pop. (2008) (2008) 73 % of GDP (200773 % of GDP (2007))

ObserversObserversAlaska ColoradoKansasNevada Wyoming

Nova ScotiaSaskatchewan

Nuevo LeonCoahuilaTamaulipasChihuahuaSonaraBaha California

WCI overviewWCI overview

• 2020 Regional Goal:2020 Regional Goal: to reduce GHG emissions by 15% below 2005 level

– Regional goal = Weighted Average of Individual Partner Goals

• Comprehensive Approach to Address Climate ChangeComprehensive Approach to Address Climate Change– Cap & Trade Program beginning in 2012– Complementary Policies

• 2010: Mandatory reporting – 10,000 tons +

• ScopeScope: Electricity/Industry - 2012, Transportation/Buildings -2015

• Dialogue approach between PartnersDialogue approach between Partners– Concensus Approach between Partners on all essential C&T linking

elements

• Dialogue approach with StakeholdersDialogue approach with Stakeholders

International Carbon Action International Carbon Action PartnershipPartnership

Goal: “to contribute to the establishment of a well-functioning global cap and trade carbon market”Forum to share: Best practices Ensure Compatibility of

Designs Make possible future linking of

trading programs

ConclusionWhat are the prospects for the future of

regional carbon markets in North American?

US and Canada: Uncertainty at the federal level

Uncertainty in the US Congress: ACES, CEJAPA,

Kerry-Lieberman-Graham, etc. EPA / Murkowski RGGI / WCI

More certainty in Canada Regulation - complete stop Harmonisation with the US

Conclusion

What are the prospects for the future of regional carbon markets in North

American?

• US and Canada: Uncertainty at the federal level• Copenhagen/Cancun: Uncertainty at the international

level• 2006-2012 Québec’s Climate action plan underway• Québec: 2020 Goal of 20% below 1990• 2020 Climate action plan in development• 2010 Provincial Budget

Québec 2010 Budget(March 30, 2010)

Industrial sector• New Policy on the development of Electric vehicles• Development of the Electric bus (30 millions $/3

years)• Green Aircraft (80 millions $/4 years)• Biorefining in the pulp and paper industry (30

millions $/ 3 years)• Zero footprint certification (24 millions $/3 years)• Data bank on products’ life cycle (1.5 millions $/3

years)

Objective: Building a green economy

Quebec and Climate Change

Thank you/GraciasObrigada/Merci!

Michele FournierSenior Policy AdvisorMinistry for Sustainable Development, Environment and Parks, Qué[email protected]