Quebec's Cap-and-Trade System Optimized to Reduce Greenhouse Gas Emissions
Introduction
Quebec's cap-and-trade system for greenhouse gas (GHG) emission allowances (CT system) is a key measure in the province's efforts to reduce emissions and combat climate change. The system has recently been optimized to improve its effectiveness.
Key Developments
* Quebec announced the optimization of the cap-and-trade system for greenhouse gas emission allowances (CT system). * The 2030 Plan for a Green Economy guides the government's action to reduce greenhouse gas emissions. * Quebec set a greenhouse gas (GHG) emissions reduction target of 37.5% in 2030 compared to 1990 levels.
System Overview
The CT system sets a cap on the total amount of GHG emissions that can be emitted by covered industries in Quebec. Companies are allocated allowances that represent their permitted emissions. Allowances can be traded among companies, creating a market-based incentive for reducing emissions.
Recent Enhancements
The recent optimization of the CT system includes: * Lowering the cap on emissions * Increasing the price of allowances * Expanding the coverage of industries
Results
The optimized CT system has led to a significant reduction in GHG emissions in Quebec: * GHG emission levels within Quebec were 13.2% lower in 2020 compared to those of 1990. * The province is on track to meet its emission reduction target of 37.5% by 2030.
Conclusion
Quebec's optimized cap-and-trade system is an effective tool for reducing GHG emissions and promoting a greener economy. The system's recent enhancements have further strengthened its effectiveness and will contribute to Quebec's long-term environmental goals.
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