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Climate change

Quebec's Carbon Pricing System: A Model for Resilient Climate Action

Strategic Insights

— 1 min read

Quebec's commitment to carbon pricing, despite the federal government's recent decision to eliminate the consumer carbon tax, is a beacon of hope for the province's efforts to combat climate change. With a broad consensus among provincial parties that human-made greenhouse gas emissions are responsible for climate change, Quebec's carbon market has been a cornerstone of the province's climate policy. The system's design, based on a cap-and-trade system with a floor price determined by market forces, makes it invisible to consumers and less prone to becoming a political target.

Key Takeaways:

  • The Quebec carbon market is a cap-and-trade system with a floor price determined by market forces, making it invisible to consumers.
  • The specific cost of the carbon price is largely hidden from consumers, as distributors, such as gasoline wholesalers and electricity providers, buy emission credits.
  • The revenues from the market are set aside in the Electrification and Climate Change Fund (ECCF) to support mitigation and adaptation.
  • The system's opacity makes it difficult for opponents to give visibility to the issue, explaining why Pierre Poilievre's "axe the tax" mantra had little resonance in Quebec.
  • Quebec's carbon pricing system is a model for resilient climate action, demonstrating that costs and constraints should be applied far away from citizens.
  • More palatable measures, such as subsidies for zero-emission vehicles and heat pumps, should be the most visible aspect of the climate strategy.

Statistics:

  • The price for carbon-emission rights in the latest auction fell to a little above $41 per tonne, down from a peak of $56 per tonne last year.
  • The revenues from the market are set aside in the Electrification and Climate Change Fund (ECCF) to support mitigation and adaptation.
  • The federal government's decision to eliminate the consumer carbon tax will likely face opposition due to the system's opacity.
  • Quebec's GHG reduction goals, as demonstrated by the Canadian Energy Outlook, are unlikely to be met through current policies.
  • The number of elected legislators in Quebec's Conservative Party is zero.

Sources:

  • University of Montreal, (exact format as mentioned in the original material)
  • Institut de l'énergie Trottier, (exact format as mentioned in the original material)
  • Canadian Energy Outlook, (exact format as mentioned in the original material)

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