A report quite relevant and accessible about the Quebec regulated carbon market; Description and Issues.
Issues that require particular attention: although control measures are planned, the implementation of a carbon market in Québec raises a certain number of issues. Government interventions on the carbon market have an impact on the number of allowances available and, consequently, on their cost and on the desired change in behaviour of emitters and consumers. In addition, implementing a common market with other governments has some advantages, but there is also a risk that reductions in GHG emissions will take place outside Québec. Benefits, like improved air quality, may be lessened if these reductions do not materialize in Québec. Carbon market regulations are complex and have been amended several times over the years. This could lead to challenges in enforcing regulations and make voluntary participants reluctant to take part in the market. A lack of information on the market, the results arising from its implementation or the use of funds collected could adversely affect its social acceptance. Finally, a lack of coordinated, complementary and comprehensive monitoring and auditing could undermine participants’ confidence which is necessary for the market’s efficiency.
For more information: Carbon market : Highlights, Spring 2016