Q-2, r. 46.1 - Regulation respecting a cap-and-trade system for greenhouse gas emission allowances

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58. Until 31 December 2020, the emission units placed in the reserve account are divided equally into 3 categories and are sold at the following prices, increased annually by 5% since 2014 and adjusted from that date in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001):
(1)  for reserve emission units in Category A, $40 per emission unit;
(2)  for reserve emission units in Category B, $45 per emission unit;
(3)  for reserve emission units in Category C, $50 per emission unit.
As of 1 January 2021, the emission units referred to in the first paragraph form a single category and for the year 2021, their price is calculated as per the equation below:

PR2021 = PM2021 + M2021

Where:
PR2021 = Price of the emission units of the reserve for 2021;
PM2021 = Minimum price of the emission units that are auctioned for the year 2021;
M2021 = Fixed amount for the year 2021, calculated according to the equation in the third paragraph.
The fixed amount referred to in the equation in the second paragraph is calculated according to the following equation:

M2021 = (PRc, 2020 – PM2020) x (1 + Ti2021)

Where:
M2021 = Fixed amount for the year 2021;
PR c, 2020 = Price of the emission units in the category C reserve, for the year 2020;
PM2020 = Minimum price of the emission units auctioned for the year 2020;
Ti2021 = Annual adjustment rate for the year 2021, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
As of 1 January of the year 2022, the price of emission units in the reserve is calculated according to the following equation:

PRt = PMt + Mt-1 x (1+Ti)

Where:
PRt = Price of the emission units in the reserve for the year t;
t = Current year;
PMt = Minimum price of the emission units auctioned for the year t;
Mt-1 = Fixed amount of the year preceding year t, calculated using the equation provided for in the fifth paragraph;
Ti = Annual adjustment rate for the current year, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
The fixed amount referred to in the equation provided for in the fourth paragraph is calculated using the following equation:

Mt-1 = (PRt-1 – PMt-1) x (1 + Ti)

Where:
Mt-1 = Fixed amount for the year preceding year t;
T = Current year;
PRt-1 = Price of the emission units in the reserve for the year t-1;
PMt-1 = Price of the emission units auctioned for the year t-1;
Ti = Annual adjustment rate for the current year, calculated in the manner set out in section 83.3 of the Financial Administration Act (chapter A-6.001).
Despite the second and fourth paragraphs, beginning on 1 January 2021, the emission units are not necessarily sold at the price calculated pursuant to those paragraphs, but at the higher of the price set by partner entities and the price calculated pursuant to those paragraphs, according to the daily average exchange rate of the Bank of Canada published on its website, in force on the fifth business day preceding the date of publication of that price on the Department’s website. That publication is done yearly on the first business day of December.
O.C. 1297-2011, s. 58; O.C. 902-2014, s. 36; 1125-2017O.C. 1125-2017, s. 35.
58. The emission units placed in the reserve account are divided equally into 3 categories and are sold at the following prices:
(1)  for reserve emission units in Category A, $40 per emission unit;
(2)  for reserve emission units in Category B, $45 per emission unit;
(3)  for reserve emission units in Category C, $50 per emission unit.
Beginning in 2014, the prices indicated in the first paragraph are increased annually by 5% and adjusted in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001).
O.C. 1297-2011, s. 58; O.C. 902-2014, s. 36.
58. The emission units placed in the reserve account are divided equally into 3 categories and are sold at the following prices:
(1)  for emission units placed on reserve in Category A, $40 per emission unit;
(2)  for emission units placed on reserve in Category B, $45 per emission unit;
(3)  for emission units placed on reserve in Category C, $50 per emission unit.
Beginning in 2014, the prices indicated in the first paragraph are increased annually by 5% and adjusted in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001).
O.C. 1297-2011, s. 58.