Nova Scotia
Nova Scotiaʼs cap-and-trade program began operating in 2019. The program covers more than 80% of GHG emissions in the province. It was established to meet the federal benchmark (see “Canada” factsheet), but it is now being phased out and replaced by an outputbased pricing system (OBPS), which was approved by the Canadian federal government in November 2022. The current cap-and-trade system will officially end after the scheduled compliance deadline in December 2023, with at least two more auctions scheduled for 2023.
The cap-and-trade program currently covers 26 participants in the power, industrial, buildings, and transportation sectors. Allocation of allowances is done through auctioning and free allocation, using both grandparenting and benchmarking. The first compliance period covered the years 2019-2022.
Since May 2018, Nova Scotia has been a member of the Western Climate Initiative (WCI), which provides technical services and support for the provinceʼs cap-and-trade program. It is not linked to any other jurisdictions.
The scheme covers the following sectors: Transport, Buildings, Industry and Power.
For more information please visit:
https://icapcarbonaction.com/en/ets/canada-nova-scotia
Québec Cap-and-Trade System
Québecʼs Cap-and-Trade System started operation in 2013 and covers ~80% of Québecʼs GHG emissions.
The system covers fuel combustion emissions in the power, buildings, transport, and industrial sectors, as well as industrial process emissions. Most allowances are auctioned, with a portion freely allocated to emissions-intensive, trade-exposed (EITE) sectors and to electricity producers with fixed-price sales contracts concluded before the announcement of the system. Québec also keeps an allowance reserve account to adjust levels of free allocation and sell to entities that do not have enough allowances to cover their obligations.
Québec has been a member of the Western Climate Initiative (WCI) since 2008 and formally linked its system with Californiaʼs in 2014.
The scheme covers the following sectors: Transport, Buildings, Industry and Power.
For more information please visit:
https://icapcarbonaction.com/en/ets/canada-quebec-cap-and-trade-system