Quebec may join California carbon market in 2013

This week Quebec adopted a regulatory amendment that will link their carbon market with California’s, perhaps as early as next year.

According to the province’s Minister of Sustainable Development, Environment, Wildlife and Parks, Quebec’s system is prepared to link with California in the Spring, and plans to participate in the August carbon allowance auction.

The news comes days after a Board of Directors meeting of the Western Climate Initiative, a group of US and Canadian state with a goal to reduce emissions by 15% below 2005 levels by 2020. The Secretary of the California Environmental Protection Agency, Matt Rodriquez, and the state’s Air Resources Board Chair Mary Nichols were in attendance.

Before a link can be established between the two carbon markets, California Governor Jerry Brown will review the proposal.

Upon hearing this news, forward contracts for California carbon allowances to be delivered in 2013 rose to $13.75 per tonne.