1. Overview of Quebec’s Initiatives and Directions November 14 th, 2007 Exploring the Challenges and Opportunities for Establishing a North Anerican Emissions Trading System Jean-Yves Benoit Economist Climate Change Office

2. - Context - Quebec’s emissions increased by 6,6 % during the 1990 to 2003 period – from 85,3 Mt to 90,9 Mt –Lowest emission increase in Canada (6.6 % vs. 24.1%) –Lowest per capita emission rate (12.1 tons vs. 26,9 tons for the rest of Canada) 94 % of Quebec’s electricity comes from renewable sources (hydro) Industrial sector reduced its emissions by approximately 7 % between 1990 and 2003 while the LFE reduced their emissions by more than 9% Mandatory capture and flaring of biogaz in large landfill sites since 1994

3. - Quebec’s initiatives - Quebec Public Transit Policy - 2006 –Increase demand by 8% by 2012 Quebec 2006-2015 Energy Strategy –10% wind power by 2015 (4 000 MW) –Add 4 500 MW of hydro power –Energy saving targets of 3 million TOE by 2015: 350 million cubic meters of natural nas by 2012 2 millions TOE of petrolium products (10% of Québec’s consumption) 8 TWh of electricity –5 % second generation gthanol in all gasoline by 2012

4. - Quebec’s initiatives - Quebec 2006-2012 Climate Change Action Plan (CCAP) –Target: reduce GHG emissions by 10 Mt by 2012 Carbon Levy –1,2 billion dollars (200 M$ per years for six years) to finance Quebec’s CCAP Canada’s ecoTrust for air quality and climate change –350 M$ (one time) federal contribution to Quebec –Will permit an additional 3,8 Mt GHG reduction in 2012 –Quebec’s emissions to be 6% below 1990 by 2012

5. - Quebec and the Carbon Market - GHG emissions inventory since 1989 and mandatory declaration (2007) Volontary approach with the LFE under evaluation Regional initiatives : –Observer on the RGGI and the WCI –Member of The Climate Registry since October Design aspects Quebec is looking for : –Recognition of early actions –Promote the development and recognize renewable energy (large hydro and wind) –Should not penalize or discourage regional environmental regulation –Montreal Climate Exchange (MCeX)

6. Merci Site Internet de la campagne de sensibilisation « Le changement climatique : vous pouvez le maîtriser » de la Communauté européenne http://ec.europa.eu/environment/climat/campaign/