On March 5, 2024, the Minister of the Environment, the Fight Against Climate Change, Wildlife and Parks issued Order 2024-0005, amending the Regulation respecting halocarbon destruction projects eligible for the issuance of offset credits. This order is part of Québec’s broader efforts to reduce greenhouse gas (GHG) emissions through a cap-and-trade system established under the Environment Quality Act (chapter Q-2). The regulation aims to improve environmental quality by establishing projects eligible for offset credits, which are awarded to entities that successfully reduce GHG emissions.

The amendments to the regulation are grounded in specific sections of the Environment Quality Act, particularly section 46.5, which facilitates a cap-and-trade system to meet GHG reduction targets. The Minister possesses the authority to grant offset credits for projects that achieve GHG reductions, as outlined in section 46.8.2 of the Act. A draft of the proposed amendments was published in the Gazette officielle du Québec on August 23, 2023, inviting public comments. The feedback received was taken into consideration, although no changes were made to the draft prior to its finalization.

One of the key changes in the updated regulation is the modification of the definition of “halocarbon,” specifically excluding those used as refrigerants in various applications. This clarification is intended to streamline the regulation’s focus on specific halocarbon destruction projects. The revised regulation also delineates the conditions under which halocarbon destruction projects can qualify for offset credits, detailing the methodology for calculating GHG emissions reductions associated with these projects, which includes new equations and revisions of previous ones.

Additionally, the regulation updates the table listing global warming potential (GWP) factors for various halocarbons, which is crucial for assessing their impact on climate change. Amendments have been made to the reporting processes, including how emissions reductions are calculated during the project reporting period, and it establishes requirements for verifier visits to destruction facilities to ensure compliance and effectiveness in reducing emissions. Certain sections of the regulation indicate that it does not apply to projects starting on or before April 3, 2024, for which a project notice was filed by that date. This transition period is intended to provide clarity and ease for ongoing projects.

Québec’s strategy to mitigate climate change impacts through improved regulations on halocarbon destruction by clarifying definitions, streamlining project requirements, and refining methodologies for calculating emissions reductions. The Minister aims to improve the effectiveness of the offset credit system while promoting environmental sustainability and compliance among stakeholders.

Quebec (MO 2024-0005) March 20, 2024