Quebec expected to join California carbon market in 2014
The California carbon market will grow to include Quebec in 2014 according to the state’s Air Resources Board (ARB).
Announcement of the linkage comes as no surprise since Quebec has been pushing hard to link with the California carbon market for the past few years.
While California aims to reduce emissions to 1990 levels by 2020, Quebec has an even more ambitious target to decrease emissions to 20 percent below 1990 levels by 2020.
This goal will require Quebec to purchase a large amount of carbon allowances and offsets, further stimulating demand for the compliance instruments.
The addition of the Canadian province will increase market size by roughly 20%, improving liquidity in the North American carbon market.
Although Quebec had hoped to participate in one of California’s quarterly carbon auctions, they will instead hold a practice auction to ensure the compatibility of their bidding platforms.
California Governor Jerry Brown is currently reviewing the proposed linkage.