Frequently Asked Questions (FAQ) - Carbon market (WCI Inc.)

  1. What is the CPEQ?

CPEQ is the French acronym for the Quebec Business Council on the Environment (Conseil Patronal de l’Environnement du Québec).

Founded in 1992 by representatives of Quebec’s main businesses and industrial sectors, the CPEQ is the umbrella organization that represents the Quebec business sector on environmental and sustainable development issues, by coordinating its member companies' objectives. The CPEQ comprises more than 271 companies and 32 associations among the most significant in Quebec, that generate more than 300,000 jobs and report combined revenues of more than 45 billion dollars.

  1. What is the Environmental Markets Trading Platform (EMTP)?

With the launch of Quebec’s cap-and-trade system (SPEDE), on January 1, 2013, CPEQ and its members decided to create an online platform that would give industries, notably those subject to SPEDE, a place where they could post requests to buy or sell carbon credits. In essence, it is an electronic (online) bulletin board for which the functionalities are explained in detail in this Tutorial video.

  1. What products are posted for exchange on the EMTP?

The terms “carbon credit”, “emission allowances” and “emission unit” are used in an interchangeable manner as synonyms on the Platform.

It is important to note that only valid carbon credits, recognized and mutually interchangeable in the carbon market regulated by the Western Climate Initiative Inc. (WCI Inc.), can be the object of an “Invitation to Negotiate” on the Platform.

Here is an exhaustive list of these carbon credits:

  • Emission allowances obtained during free allocation by the Quebec Minister of the Environment and the Fight against Climate Change (the "Minister") or by his California counterpart;

  • Emission allowances sold at auction by the Minister or by his California counterpart;

  • Emission allowances acquired under a sale by mutual agreement organized by the Minister or by his California counterpart;

  • Quebec early reduction credits; 

  • Verified California early action offset credits;

  • Verified offset credits derived from a project using one of the approved protocols as stated in the Quebec cap-and-trade system; and

  • Verified offset credits derived from a project using one of the approved protocols as stated in the California cap-and-trade system.

  1. Who can post an Invitation to Negotiate?

Any emitter, distributor, participant or individual holding an account with the Compliance Instrument Tracking System Service (CITSS) can use the Platform.

  1. Do you have to be a member of CPEQ to use the Platform?

No. Non-members can also use the Platform.

  1. Do you have to become a member of EMTP to access the Platform?

You simply need to obtain a User ID and password by completing the online form or by contacting CPEQ at 514-393-1122 or by email at info@cpeq.org. Once your User ID is set up, you can use the Platform which is accessible through CPEQ’s website.

It should be noted that all CPEQ members can use their regular user ID and password to access the Platform.

  1. How do I get a User ID to access the Platform?

To obtain a User ID and a password, you can complete the online form or contact CPEQ at 514-393-1122 or by email at info@cpeq.org.

  1. Is access to the platform only reserved for Quebec participants?

Any emitter, distributor, participant or individual who has an account with CITSS can submit an Invitation to Negotiate the purchase or sale of carbon credits, whether they are from Quebec, California or elsewhere.  

  1. Is this process anonymous or would my name be divulged to the public or to CPEQ members if I use the Platform?

When a user submits an Invitation to Negotiate, that user's identification information is divulged only to CPEQ which is obliged to keep it confidential.

If another platform user wishes to respond to an Invitation to Negotiate, he must fill out the appropriate online form and his identification information is forwarded by email to CPEQ as well as to the user who published the invitation. Once this information has been transmitted, it is up to the publishing user to decide if he wishes to communicate with the other user to negotiate the purchase or sale of carbon credits.

  1. What are the fees to use the EMTP?

Access to the Platform has been free of charge for both members and non-members, since its inception, and that is still the case.

  1. Are contracts negotiated on the EMTP binding?

The publication of an "Invitation to Negotiate" is not binding in any way to the user who publishes it on the platform, nor to anyone who responded to it. An "Invitation to Negotiate" is neither a promise nor an offer to contract under the Civil Code of Québec. The buyer and seller, once they connect through the Platform, may negotiate the details and decide to agree on a contract.

  1. Does CPEQ get involved with the buyer and/or the seller?

CPEQ is not a party to any contract and is not bound by any contractual or non-contractual liability arising directly or indirectly from the use of the Platform.

  1. Is the Platform regulated?

No. The EMTP is not a regulated platform. In essence, it is an online bulletin board.

  1. What are the benefits of the EMTP?

As the carbon credits issued by the WCI Inc. are not recognized as transferable securities or commodities by the regulators in Canada, these credits cannot, at this time, be listed on a recognized exchange. CPEQ's EMTP provides that central marketplace in the form of an electronic bulletin board. Industries who fall under the regulations regarding emissions and who want to buy carbon credits, in order to meet a compliance target, can benefit by submitting Invitations to Negotiate for the purchase of such credits, while project developers and emitters who have a carbon credit surplus can benefit by submitting Invitations to Negotiate in order to sell them.

EMTP offers the following advantages:

  • An anonymous marketplace;

  • A pool of buyers and sellers;

  • Price discovery.

  1. How do I become a CPEQ member?

To become a member, you can complete the online form or contact Jason Lebel (514 393-1122 or jlebel@cpeq.org).

  1. Who can I contact to obtain more information on using the EMTP?

For information on the Platform and its use, please contact us at 514-393-1122 or by email at info@cpeq.org.