The first offsets issued under Quebec’s emissions trading scheme have been bought by natural gas distributor Gaz Métro, it announced on Thursday.
The company said the deal for the 161,510 credits was valued at C$2 million, which works out to an approximate unit price of C$12.38 paid to the GHG-cutting project’s developer Recyclage Écosolutions Inc.
“The transaction … is in keeping with Gaz Métro’s vision of ensuring compliance with the Quebec-California carbon market while generating positive spinoffs in Quebec. In fact, Gaz Métro signed an agreement with RES to acquire future offset credits that RES expects to produce,” it added.
RES was awarded the offsets on July 7, though the issuance was only announced by the Quebec government in late September.
The credits stem from RES destroying 81 tonnes of chlorofluorocarbons (CFCs), one of several ozone-depleting substances (ODS).
“We are thrilled to be concluding the first transaction involving 100% Quebec credits,” said Stéphanie Trudeau, vice president for strategy, communication and sustainability at Gaz Métro.
RES said the market for destroying ODS is very promising in Quebec.
“There are opportunities to be seized in this still untapped market … Harmonizing environmental standards and clean technology protocols with those of California would also be a concrete way to develop the Quebec market,” added Arnold Ross, technical director at RES.
The RES project is one of five approved so far by the Quebec government, and the only one that destroys ODS. The other four capture methane from landfill sites or agricultural manure and prevent it from entering the atmosphere.
The Canadian province is also currently developing rules for coal mine methane, forestation and reforestation projects. Those protocols are expected to be put up for public consultation later this year.
The Quebec and California markets, which are linked under the WCI programme, allow participants to use offsets to meet up to 8% of their compliance obligations.
By Mike Szabo – mike@carbon-pulse.com
