Québec, Canada

To meet the dual challenge of reducing emissions and adapting to climate impacts, the Government of Québec introduced carbon pricing in 2007, applying the “polluter pays” principle to generate dedicated climate funding. What began as a fuel tax evolved into a flexible cap-and-trade system (C&T), which was introduced in 2013 and linked to a similar program in California in 2014.

In more than 12 years, Québec’s system has raised over CA$10 billion (USD $7.45 billion), 100% of which has been reinvested into mitigation and adaptation.

This funding has enabled major public policy efforts, strengthened the resilience of communities and infrastructure, and supported international adaptation in vulnerable countries. Québec’s carbon market stands out globally for its innovation in design and operation and is increasingly seen as a model by other jurisdictions. It has helped Québec exceed its 2020 emissions target and positioned the province as a leader in international climate cooperation.

The full case study in English is available below. The Spanish and French versions will be available soon.