July 16, 2013 by California Carbon
Climate Connect News, London: The California Air Resources Board has formally made updated its cap-and-trade regulations to include specific amendments regarding linkage with the Québec cap-and-trade scheme. The linkage is set to take effect from 01 January 2014.
Under the linkage, California and Québec will accept each other’s carbon allowances and approved offsets for compliance under their respective cap-and-trade program. The allowances and offsets of both the jurisdictions will be tracked through the Compliance Instrument Tracking System Service implemented by California. The two scheme will share a common auctioning platform and will be supported by the Western Climate Initiative (WCI) for basic administrative functions. The California ARB noted that the linkage would serve as a template for possible future linkage with other jurisdictions.
California and Québec have worked together over the past four years to develop their respective cap-and-trade programs to provide for potential linkage. That joint effort and experience help ensure that the two programs will complement one another and provide covered facilities in both jurisdictions with the benefits of a larger program.
To prepare for the linkage, California and Québec will be conducting several prelinkage activities during the intervening time between adoption of this regulation and the effective date. These activities include a practice joint auction between California and Québec, testing of the current auction platform to allow for a joint auction, and an independent evaluation of processes, procedures and systems of California’s and Québec’s programs to ensure implementation readiness.
Québec, being a smaller market than California, is expected be a major supplier of carbon offsets to the compliance entities in California.
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