Start of a new compliance period for the C&T System
The new 2021–2023 compliance period for the Cap and Trade System (C&T) applicable in Québec began on January 1, 2021. Over the past three months, the price of emission units on the market has increased by US$0.49 (+2.8%) , from US$17.33 on October 19, 2020, to US$17.82 on January 19, 2021. The rise in prices can mainly be explained by:
- the floor price increase for 2021 (now at CAN$17.36 in Quebec and US$17.71 in California);
- the result of the US elections perceived as favorable to environmental policies, as well as the recent victory of two Democratic senators in Georgia, fostering positive sentiment for the carbon market in California;
- the activity of speculators, who are always present in the market.