Adds comment from California Air Resources Board.
Houston, 23 July (Argus) — The Quebec environmental ministry is again delaying publication of potential changes for the province’s cap-and-trade program, the latest in a series of roadblocks for updating the Western Climate Initiative (WCI).
The province is shifting the planned publication date of its draft rules to the fall, which starts on 22 September in North America, from its previous spring-summer timeline, the ministry told Argus.
But the ministry still plans to implement its program changes by the end of winter, a window that closes on 20 March 2026.
Quebec regulators are considering removing 17.5mn allowances from its program, a reflection of the gap between supply and demand in the program over 2013-2020, to incentivize further greenhouse gas (GHG) emissions reductions, while tapering the use of carbon offset credits by 2030, among other changes. But the province has not provided further details on which amendments will make it into the draft regulations since its initial notice of potential changes in October 2024.
The province maintains its preference that California, its partner in the WCI, publish its slew of changes first, citing a lack of flexibility for amending its draft once published.
But the California Air Resources Board (CARB) indicated earlier this year that it will wait for state lawmakers to finalize an extension of the cap-and-trade program, rather than first adopt regulations that could include setting a 48pc GHG reduction target by 2030 to replace the current 40pc mandate. The cap-and-trade program sunsets in 2030.
California legislators convened work groups this year, aiming for an extension of the program focusing on maintaining affordability and potentially revising some program mechanics.
But lawmakers left for their month-long summer recess last week without making any formal proposals, leaving a narrow 21-workday window to pass legislation before the 12 September cutoff date for this year’s session.
CARB has indicated it could implement any program changes under consideration into 2026, rather than by its preferred start date of 1 January, if needed.
It still plans to move forward on its program amendments this year, the agency told Argus, but did not specify an exact timeframe.
California’s and Quebec’s cap-and-trade programs cover major sources of the state’s GHG emissions, including power plants and transportation fuels.
By Denise Cathey
