Following a public comment period, the Regulation amending the Regulation respecting a cap-and-trade system for greenhouse gas emission allowances
(RCATS) was published on August 17, 2022, in the Gazette officielle du Québec
These regulations set out new rules governing the free allocation of greenhouse gas (GHG) emission units paid to certain companies regulated by the carbon market for the period 2024 to 2030 in order to meet Quebec’s 2030 reduction targets.
Under this new regulation, there will be a gradual reduction in the free allocation of emission units for large industrial companies and a deposit, on their behalf, of income from the sale of a portion of the reduced units to finance their transition to lower carbon energy consumption.
The new free allowance rules will come into effect on January 1, 2024. The terms and conditions related to the use of money from the deposit and other changes to the operation of the CATS came into effect on September 1, 2022.