Closed
Source verified July 23, 2026
Allocation of Emission Units Without Charge
Free carbon allowances for eligible emitters
Funding available
Varies by project
Deadline
Closed
Location
Quebec, Canada
Who can apply
Emitters that operate an establishment subject to the Cap-and-Trade System for greenhouse gas emission allowances.
See full eligibility
Overview
Allocation of Emission Units Without Charge supports eligible emitters in Québec’s cap-and-trade system by allocating emission units at no charge to reduce carbon leakage and maintain competitiveness. Starting in 2024, consigned proceeds may support technical and economic potential studies, GHG emission reduction projects, and technological innovation projects.
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At a glance
Funding available
Financing goals
- Implement environmental initiatives
- Conduct research and development activities
- Reduce environmental footprint
Eligible Funding
- Varies by project
Eligible candidates
Eligible Industries
- All industries
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Studies of the technical and economic potential of GHG emission reduction.
- GHG emission reduction projects in an emitter’s establishments or outside the site when they reduce emissions from the covered facility.
- Technological innovation projects in the field of GHG emission reduction.
- Energy substitution within a GHG emission reduction project, including renewable electricity, green hydrogen when electrification is impossible, first-generation renewable natural gas, residual biomass sourced in Québec, or bioenergy produced by pyrolysis using residual forest biomass.
Documents Needed
- Project Submission Form
Official resources
Program guide
Eligibility
Who is eligible?
- Emitters that operate an establishment subject to the Cap-and-Trade System for greenhouse gas emission allowances.
- Emitters that voluntarily opt into the system and engage in an activity referred to in Table A Part I in Schedule C of the Regulation respecting a Cap-and-Trade System for greenhouse gas emission allowances.
Who is not eligible
- Companies subject to the regulation that are not exposed to national or international competition.
- Companies that can transfer the cost of carbon to their customers.
- Electricity producers.
- Fuel distributors.
How to apply
- Request a copy of the agreement by email at spede.projets@environnement.gouv.qc.ca.
- Complete the Project Submission Form, use tabs 1, 3, and 5 only, clearly identify the measure(s) in tab 1, and submit it to the MELCCFP before December 31, 2030.
Processing and Agreement
- The Minister confirms whether the emitter’s project is eligible after analysis.
- The emitter must wait for this confirmation before incurring expenses.
- If the project is not completed at the end of a given year, submit the updated project submission form and a completed project progress report between January 1 and March 1 of each year.
- In June and November of each year, complete the project financial planning update form sent by email.
- If expenses amount to $100,000 or more, submit a financial audit report with the annual or final report; once the study is completed, submit the final report within 60 days of the conclusion of the study-related activities and no later than five years after the project submission date.
Contacts
Frequently Asked Questions about the Allocation of Emission Units Without Charge Program
What is the Allocation of Emission Units Without Charge?
Allocation of Emission Units Without Charge supports eligible emitters in Québec’s cap-and-trade system by allocating emission units at no charge to reduce carbon leakage and maintain competitiveness. Starting in 2024, consigned proceeds may support technical and economic potential studies, GHG emission reduction projects, and technological innovation projects.
Who is eligible for the Allocation of Emission Units Without Charge program?
To be eligible for the Allocation of Emission Units Without Charge program, you must:
The applicant must operate an establishment subject to the Cap-and-Trade System for greenhouse gas emission allowances, or voluntarily opt into the system.
The applicant must engage in an activity referred to in Table A Part I in Schedule C of the Regulation respecting a Cap-and-Trade System for greenhouse gas emission allowances.
What expenses are eligible under Allocation of Emission Units Without Charge?
Studies of the technical and economic potential of GHG emission reduction.
GHG emission reduction projects in an emitter’s establishments or outside the site when they reduce emissions from the covered facility.
Technological innovation projects in the field of GHG emission reduction.
Energy substitution within a GHG emission reduction project, including renewable electricity, green hydrogen when electrification is impossible, first-generation renewable natural gas, residual biomass sourced in Québec, or bioenergy produced by pyrolysis using residual forest biomass.
Who can I contact for more information about the Allocation of Emission Units Without Charge?
You can contact Quebec Ministry of the Environment and the Fight Against Climate Change (MELCC) by email at spede.projets@environnement.gouv.qc.ca.
Where is the Allocation of Emission Units Without Charge available?
The Allocation of Emission Units Without Charge program is available the province of Quebec.
Is the Allocation of Emission Units Without Charge a grant, loan, or tax credit?
Allocation of Emission Units Without Charge is a Grant and Funding
Who are the financial supporters of the Allocation of Emission Units Without Charge?
Allocation of Emission Units Without Charge is funded by Quebec Ministry of the Environment and the Fight Against Climate Change (MELCC)