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

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APPENDIX C
(ss. 39, 40 and 41)
Part I
Table A Activities eligible for the allocation without charge of greenhouse gas emission units

_________________________________________________________________________________
| | |
| Activity | 6-digit NAICS* code beginning |
| | with |
|________________________________________|________________________________________|
| | |
| Mining and quarrying (except oil | 212 |
| and gas) | |
|________________________________________|________________________________________|
| | |
| Electric power generation sold under a | 2211 |
| contract signed prior to 1 January | |
| 2008, that has not been renewed or | |
| extended after that date, in which the | |
| sale price is fixed for the duration | |
| of the contract, with no possibility | |
| of adjusting the price to take into | |
| account the costs relating to the | |
| implementation of a cap-and-trade | |
| system for greenhouse gas emission | |
| allowances | |
| | |
| Until 2020, Acquisition, for the | |
| consumption of the enterprise or for | |
| sale in Québec,of power generated in | |
| another Canadian province or territory | |
| or in a state in which the government | |
| has established a cap-and-trade system | |
| for greenhouse gas emission allowances | |
| targeting power generation, but has | |
| not signed an agreement referred to in | |
| section 46.14 of the Environment | |
| Quality Act (chapter Q-2) | |
|________________________________________|________________________________________|
| | |
| Steam and air-conditioning supply | 22133 |
| for industrial purposes | |
|________________________________________|________________________________________|
| | |
| Manufacturing | 31, 32 or 33 |
|________________________________________|________________________________________|
| | |
| Beginning in 2021: Acquisition, for the| |
| consumption of the enterprise or for | |
| sale in Québec, of power generated in a| |
| state in which the government has | |
| established, within its territory, a | |
| cap-and-trade system for greenhouse | |
| gas emission allowances targeting | |
| power generation, but has not signed | |
| an agreement referred to in section | |
| 46.14 of the Environment Quality Act | |
|________________________________________|________________________________________|
Table B Reference units1
Part II
Calculation methods for the allocation of emission units without charge
(A) Definition
For the purposes of the calculation methods,
(0.1) old GWP values : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) in force on 31 December 2020;
(1) covered establishment as of 2013 means an establishment for which the GHG reported emissions for 2009, 2010 or 2011 are equal to or exceed the emissions threshold;
(2) covered establishment after 2013 means an establishment for which the verified GHG emissions for 2012, 2013, 2014 or 2015 are equal to or exceed the emissions threshold;
(3) covered establishment as of 2018 means an establishment for which the verified GHG emissions for 2016, 2017 or 2018 are equal to or exceed the emissions threshold;
(4) establishment covered prior to 2021 means an establishment referred to in paragraph 1, 2 or 3, or an establishment referred to in section 2.1 before 2021 that is still targeted by the system in 2021;
(5) covered establishment as of 2021 means an establishment for which the verified GHG emissions for 2019 to 2023 are equal to or exceed the emissions threshold;
(5.1) covered establishment prior to 2024 means an establishment referred to in paragraph 1, 2, 3, 4 or 5, or an establishment referred to in section 2.1 prior to 2024, that is still targeted by the system in 2024;
(5.2) covered establishment as of 2024 means an establishment the operator of which must cover the emissions under, as the case may be, section 19 or 19.0.1 as of 2024 or a subsequent year;
(6) new GWP values : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere in force on 1 January 2021.
(B) Categories of GHG emissions by origin
GHG emissions are divided into 3 categories on the basis of their origin: fixed process emissions, combustion emissions and other emissions.
Fixed process emissions are the CO2 emissions resulting from a fixed chemical reaction process for production purposes that generates CO2, from chemically-bonded carbon in the raw material, or from the carbon used to remove an undesirable component from the raw material where there is no substitutable raw material.
Combustion emissions are the emissions resulting from the exothermic reaction of any fuel, except CO2 emissions attributable to the combustion of biomass or biomass fuels.
Other emissions are the emissions that do not meet the criteria for fixed process emissions or combustion emissions.
(C) Establishments and new facilities considered on a sectoral basis for the allocation of emission units without charge
For the purpose of calculating the number of emission units that may be allocated without charge to an emitter, establishments and new facilities pursuing the following activities are considered on a sectoral basis:
(1) lime production;
(2) cement production;
(3) prebaked anode production and aluminum production using prebaked anode technologies until 2020;
(4) prebaked anode production and aluminum production using prebaked anode technologies except a side-worked prebaked anode technology as of 2021;
(5) aluminum production using inert anode cells installed in a building which, when the cells were installed, already contained prebaked anode cells;
(6) aluminum production using inert anode cells installed in a building to replace the prebaked anode cells installed in that building;
(7) aluminum production, in an establishment covered on 1 September 2022, using inert anode cells installed in a building adjacent to the building in which prebaked anode cells are installed.
(D) Calculation methods
For the application of the methods set out in this Part, the result of an intensity target of emissions calculation is rounded off to 4 significant figures and the result of an emission unit allocation calculation is rounded up to the nearest whole number.
For the application of the calculation methods set out in this Part, the GHG emissions data used are
(1) for the years 2007 to 2011, the data for reported emissions, minus the emissions referred to in the second paragraph of section 6.6 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15)
(2) for the years 2012 and following, the verified emissions.
Subject to the fifth paragraph, the total quantity of GHG emission units allocated without charge to an emitter referred to in section 2 is calculated in accordance with the following methods:
(1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 2-1 to 2-9;
(1.1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1 and 4-1 to 4-8;
(2) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 3-1 to 3-10;
(2.1) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1, 5-1 and 5-2;
(3) in the case of an establishment covered after 2013 that is not considered on a sectoral basis, using equations 1-1 and 4-1 to 4-8;
(4) in the case of an establishment covered after 2013 that is considered on a sectoral basis, using equations 1-1 and 5-1 for the years 2013 to 2014, using equation 5-2 for the years 2015 to 2017 and using equation 5-3 for the years 2018 to 2020;
(5) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 1-1 and 4-9 to 4-14;
(6) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-15 to 4-20;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until the data are all available;
(7) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-23 and 4-24;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until those data are all available;
(8) in the case of an establishment covered prior to the year 2021 that is not considered on a sectoral basis, using equations 7-1 and 8-1 to 8- 10 for the years 2021 to 2023;
(9) in the case of an establishment covered prior to the year 2021 that produces cement, lime, prebaked anodes or aluminum by using a prebaked anode technology other than the side-worked prebaked anode technology, using equations 7-1 and 9-1 for the years 2021 to 2023;
(10) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 7-1 and 10-1 to 10-4;
(11) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 7-1 and 11-1 to 11-4;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 7-1, 11-5 and 11-6, until the data are all available;
(12) in the case of a covered establishment as of 2021 that does not possess a determined reference unit and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 7-1, 12-1 and 12-2;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 7-1, 11-5 and 11-6, until the data are all available;
(13) in the case of an establishment that produces liquid aluminum by using a side-worked prebaked anode technology, using equations 7-1 and 8-1 to 8-7 for the years 2021 to 2023;
(14) (subparagraph revoked);
(15) in the case of an establishment that produces steel (slabs, pellets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2), using equations 7-1 and 6-15 for the years 2021 to 2023;
(16) in the case of a copper refinery, using equations 7-1 and 6-16 for the years 2021 to 2023;
(17) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 19-1;
(18) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 20-1;
(19) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or d+1 to d+3, where d is the year in which the establishment became operational, are all available, using equations 18-1 and 21-1;
(20) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or d+1 to d+3, where d is the year in which the establishment became operational, are not all available, using equations 18-1 and 22-1;
(21) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years d-2 to d, are all available and that is not a newly operational establishment, using equations 18-1 and 23-1;
(22) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years d-2 to d are not all available and that is not a newly operational establishment, using equations 18-1 and 24-1;
(23) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 18-1 and 24-7.
Subject to the fifth paragraph, the total quantity of GHG emission units allocated without charge to an emitter referred to in section 2.1 is calculated in accordance with the following methods:
(1) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years e-3 to e-1, using equations 1-1 and 4-25 to 4-30 for the years 2018 to 2020;
(2) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years e-3 to e-1 and for which, as the case may be,
(a) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 1-1 and 4-31 to 4-36 for the years 2018 to 2020;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 1-1 and 4-37 and 4-38 for the years 2018 to 2020, until the data are all available;
(3) in the case of a covered establishment referred to in section 2.1 that does not possess a determined reference unit, that is not considered on a sectoral basis and for which, as the case may be,
(a) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 1-1, 4-39 and 4-40 for the years 2018 to 2020;
(b) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 1-1 and 4-37 and 4-38 for the years 2018 to 2020, until the data are all available;
(4) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years e-3 to e-1, using equations 7-1 and 13-1 to 13-4 for the years 2021 to 2023;
(5) in the case of a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years e-3 to e-1 and for which, as the case may be,
(a) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 7-1 and 14-1 to 14-4 for the years 2021 to 2023;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 7-1, 14-5 and 14-6 for the years 2021 to 2023, until the data are all available;
(6) in the case of a covered establishment referred to in section 2.1 that does not possess a determined reference unit and for which, as the case may be,
(a) the GHG emissions data, for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equations 7-1, 15-1 and 15-2 for the years 2021 to 2023;
(b) the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 7-1, 14-5 and 14-6 for the years 2021 to 2023, until the data are all available;
(7) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 19-1;
(8) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-1 and 20-1;
(9) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years e+1 to e+3 or years e+2 to e+4, where e+1 is the year in which the establishment became operational, are all available, using equations 18-1 and 21-1;
(10) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years e+1 to e+3 or years e+2 to e+4, where e is the year in which the establishment became operational, are not all available, using equations 18-1 and 22-1;
(11) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years e-3 to e-1 are all available and that is not a newly operational establishment, using equations 18-1 and 23-1;
(12) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis, for which the GHG emissions data for years e-3 to e-1 are not all available and that is not a newly operational establishment, using equations 18-1 and 24-1;
(13) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational are not all available, using equations 18-1 and 24-7.
In the special cases provided for below, the emission units allocated without charge to an emitter are calculated:
(1) in the case of an establishment producing aluminum anodes using Söderberg anode technology after 2014, using equation 2-9 but replacing the factor “I2020i” by the factor “I2020 sod” calculated using equation 6-1;
(2) in the case of an establishment producing alumina from bauxite, using equation 6-2;
(3) in the case of an establishment producing rigid foamed insulation, using equation 2-1 for 2013 and 2014, calculating the factor “I2013” using equations 6-3 to 6-6, and using equation 6-7 for 2015 to 2020;
(4) in the case of an establishment producing zinc and generally using hydrogen as a fuel to supply its furnaces, using equations 6-8 to 6-10 for the years 2013 to 2020 and using equations 6-10.1 and 6-10.2 for the years 2021 to 2023;
(5) in the case of a new facility and the production of a new reference unit, using the methods in subdivision 6.5;
(6) in the case of an establishment covered after 2013 whose production replaces all or part of the production of another establishment or facility of the same emitter in Québec that closed after 1 January 2008, using the methods in subdivision 6.6;
(7) in the case of an enterprise who acquires, for the consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a state in which the government has established a cap-and-trade system for greenhouse gas emission allowances targeting power generation, but has not signed an agreement referred to in section 46.14 of the Environment Quality Act (chapter Q-2), using equation 6-11 for the years 2013 to 2020 and using equation 6-11.1 for the years 2021 to 2023;
(8) in the case of a copper foundry, using equations 6-12 and 6-13 for the years 2013 to 2020 and using equation 6-14 for the years 2021 to 2023;
(9) beginning in the year 2023, in the case of an establishment in the pulp and paper sector producing electricity through cogeneration, excluding the emissions data attributable to the production of electricity by cogeneration in metric tonnes CO2 equivalent calculated using equations 25-1 to 25-6.
The total quantity of GHG emission units allocated without charge and paid to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment covered prior to the year 2024, other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030, using equations 18-2 and 19-5;
(2) in the case of an establishment that is considered on a sectoral basis for the years 2024 to 2030, using equations 18-2 and 20-4;
(3) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or e+1 to e+3 or years d+1 to d+3 or e+2 to e+4, where d or e+1 is the year in which the establishment became operational, are all available, using equations 18-2 and 21-3;
(4) in the case of a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or d+1 to d+3, where d is the year in which the establishment became operational, or years e+1 to e+3 or e+2 to e+4, where e+1 is the year in which the establishment became operational, are not all available, using equations 18-2 and 22-3;
(5) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are all available, using equations 18-2 and 23-3;
(6) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available, using equations 18-2 and 24-4;
(7) in the case of a covered establishment as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equations 18-2 and 24-8.
The total quantity of GHG emission units allocated without charge to be auctioned for an establishment is calculated in accordance with equation 18-3.
Despite the third and fourth paragraphs,
(1) the quantity of GHG emission units allocated without charge to a covered emitter beginning in the year 2023 is calculated using the methods applicable to the emitter during the last year of its first registration for the system;
(2) the quantity of GHG emission units allocated without charge to an emitter whose registration was interrupted for a period of less than 3 years is calculated using the methods applicable to the last year during which the emitter was eligible for an allocation free of charge.
1. Calculation of the total quantity of GHG emission units allocated without charge for an establishment for the years 2013 to 2020
Equation 1-1 Calculation of the total quantity of GHG emission units allocated without charge for an establishment
Where:
Aestablishment i j = Total quantity of GHG emission units allocated without charge for an establishment for year i for all types of activities j in Table B of Part I of this Schedule for that establishment;
i = Each year included in the period 2013 to 2020;
j = Each type of activity at the establishment;
m = Total number of types of activity at the establishment;
Ai j = Number of GHG emission units allocated without charge by type of activity j for year i, calculated using equations 2-1, 2-9, 3-1, 3-10, 4-1, 4-8, 4-9, 4-15, 4-21, 4-23, 4-25, 4-31, 4-37, 4-39, 5-1, 5-2, 5-3, 6-2, 6-7, 6-8, 6-9 and 6-10.3.
2. Covered establishment as of 2013 that is not considered on a sectoral basis
(2.1) Calculation method for the years 2013 and 2014
Equation 2-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2013 and 2014
Ai j = I2013j × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge for type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
I2013j = Intensity target of GHG emissions attributable to the type of activity at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-2 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for the years 2013 and 2014
I2013j = IFPav j + RxICav j + IOav j
Where:
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPav j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-3, in metric tonnes CO2 equivalent per reference unit;
R = Multiplication factor for GHG combustion emissions intensity at the establishment calculated using equations 2-4 and 2-5 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
ICav j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-6, in metric tonnes CO2 equivalent per reference unit;
IO av j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-7, in metric tonnes CO2 equivalent per reference unit.
Equation 2-3 Average intensity GHG fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
IFPav j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
i = Each year included in the period 2007-2010;
j = Type of activity;
GHG FPi j = GHG fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-4 Calculation of the intensity multiplication factor for combustion emissions at an establishment that is not considered on a sectoral basis
R = 0.80 × GFR + (1-GFR)
Where:
R = Multiplication factor for GHG combustion emissions intensity at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment, calculated using equation 2-5.
Equation 2-5 Calculation of the GFR ratio for an establishment that is not considered on a sectoral basis
Where:
GFR = Ratio between total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment;
i = Each year included in the period 2007-2010;
GHG GFR i = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG C i = Total GHG combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 2-6 Average intensity of GHG combustion emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
ICav j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
GHG Ci j = GHG combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-7 Average intensity of other GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for the period 2007-2010
Where:
IO av j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
i = Each year included in the period 2007-2010;
j = Type of activity;
GHG O i j = Other GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 2-8 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
I2020 j = IFP 2020 j + IC 2020 j + IO 2020 j
Where:
I2020 j = Intensity target of GHG emissions attributable to type of activity j at the establishment for year 2020, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFP 2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j, using equation 2-8.1;
IC 2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j, using equation 2-8.2;
IO 2020 j = Intensity of other emissions calculated for year 2020 for type of activity j, using equation 2-8.3.
Equation 2-8.1 Calculation of the intensity target of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
IFP 2020 j = IFP av j
Where:
IFP 2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j;
j = Type of activity;
IFP av j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for the period 2007-2010, calculated using equation 2-3, in metric tonnes CO2 equivalent per reference unit.
Equation 2-8.2 Calculation of the intensity target of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis for year 2020
IC 2020 j = R × min[(0.95)IC min j; (0.90)IC av j]
Where:
IC 2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j;
j = Type of activity;
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equations 2-4 and 2-5 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions;
IC min j = Minimum annual intensity of combustion emissions attributable to type of activity j at the establishment for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of combustion emissions;
IC av j = Average intensity of combustion emissions attributable to type of activity j at the establishment for the years 2007 to 2010, calculated using equation 2-6, in metric tonnes CO2 equivalent per reference unit.
Equation 2-8.3 Calculation of the intensity target of other emissions by type of activity at an establishment that is not considered on a sectoral basis for the year 2020
IO 2020 j = min[(0.95)IO min j; (0.90)IO av j]
Where:
IO 2020 j = Intensity of other emissions calculated for the year 2020 for type of activity j;
j = Type of activity;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of other emissions;
IO min j = Minimum annual intensity of other emissions attributable to type of activity j at the establishment for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of other emissions;
IO av j = Average intensity of other emissions attributable to type of activity j at the establishment for the years 2007 to 2010, calculated using equation 2-7, in metric tonnes CO2 equivalent per reference unit.
(2.2) Calculation method for the years 2015-2020
Equation 2-9 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2015-2020

Ai j = (6 - x) I2013j + xI2020j
_________________________ × PRi j
6

Where:
Ai j= Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
j = Type of activity;
6 = 6 years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the year 2020, calculated using equation 2-8, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j for year i.
3. Covered establishment as of 2013 that is considered on a sectoral basis
(3.1) Calculation method for the years 2013 and 2014
Equation 3-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is considered on a sectoral basis for the years 2013 and 2014
Ai j = max(I2013j;I2020s j) × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
max = Maximum value, representing the greater of the values I2013j and I2020s j;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used for type of activity j at the establishment for year i.
Equation 3-2 Calculation of the intensity target of GHG emissions by type of activity at an establishment that is considered on a sectoral basis for the year 2020
I2020s j = IFPav(S) j + Rs × min[(0.95)ICmin(S) j;(0.90)ICav(S)j]+min[(0.95)IOmin(S) j;(0.90)IO av(S) j]
Where:
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPav(S) j = Average intensity of GHG fixed process emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-3, in metric tonnes CO2 equivalent per reference unit;
Rs = Sectoral multiplication factor for the intensity of GHG combustion emissions calculated using equations 3-4 and 3-5;
min = Minimum value, representing the lesser of the 2 elements calculated;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions or of the minimum intensity of other GHG emissions;
ICmin(S) j = Minimum annual average intensity of GHG combustion emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, calculated using equation 3-6, in metric tonnes CO2 equivalent per reference unit;
0.90 = Proportion corresponding to 90% of the average intensity of combustion emissions or the average intensity of other GHG emissions;
ICav(S)j = Average intensity of GHG combustion emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-7, in metric tonnes CO2 equivalent per reference unit;
IOmin(S) j = Minimum annual average intensity of other GHG emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, calculated using equation 3-8, in metric tonnes CO2 equivalent per reference unit;
IO av(S) j = Average intensity of other GHG emissions attributable to type of activity j in the sector for the period 2007-2010, calculated using equation 3-9, in metric tonnes CO2 equivalent per reference unit.
Equation 3-3 Average intensity of GHG fixed process emissions attributable to the type of activity in the sector for the period 2007-2010
Where:
IFPav(S) j = Average intensity of GHG fixed process emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG FPi jk = GHG fixed process emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRi jk = Total quantity of reference units produced or used at establishment k for type of activity j for year i.
Equation 3-4 Calculation of the combustion intensity multiplication factor at an establishment that is considered on a sectoral basis
Rs = 0.80 X GFRs + (1 - GFRs)
Where:
Rs = Sectoral multiplication factor for the intensity of GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFRs ratio;
GFRs = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at establishments in the sector, calculated using equation 3-5.
Equation 3-5 Calculation of the GFRs ratio for an establishment that is considered on a sectoral basis
Where:
GFRs = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at establishments in the sector;
i = Each year included in the period 2007-2010;
l = Number of establishments in the sector covered as of 2013;
k = Establishment in the sector covered as of 2013 in the sector;
GHG GFRsi k = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment k during year i, in metric tonnes CO2 equivalent;
GHG Csi k = Total GHG combustion emissions attributable to the use of fuel at establishment k for year i, in metric tonnes CO2 equivalent.
Equation 3-6 Calculation of the minimum average annual intensity of GHG combustion emissions attributable to the type of activity in the sector for 2007 to 2010
Where:
ICmin(s)j = Minimum average annual intensity of GHG combustion emissions attributable to type of activity j in the sector for the years 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
min = Minimum value, representing the lesser of the intensity values for the years 2007, 2008, 2009 and 2010;
l = Number of establishments covered as of 2013 in the sector;
GHG Ci jk = GHG combustion emissions attributable to type of activity j at establishment k during the years i corresponding to 2007, 2008, 2009 and 2010, in metric tonnes CO2 equivalent;
k = Establishment in the sector covered as of 2013;
Pi jk = Total quantity of reference units produced or used at establishment k for type of activity j during the years i corresponding to 2007, 2008, 2009 and 2010.
Equation 3-7 Average intensity of GHG combustion emissions attributable to a type of activity in the sector for the period 2007-2010
Where:
ICav(S) j = Average intensity of GHG combustion emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG Ci jk = GHG combustion emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRi jk = Total quantity of reference units produced or used at establishment k for type of activity j for year i.
Equation 3-8 Calculation of the minimum average annual intensity of other GHG emissions attributable to a type of activity in the sector for 2007 to 2010
Where:
IOmin(s) j = Minimum average annual intensity of other GHG emissions attributable to type of activity j in the sector for 2007 to 2010 inclusively, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
min = Minimum value, representing the lesser of the intensity values for the years 2007, 2008, 2009 and 2010;
l = Number of establishments covered as of 2013 in the sector;
GHG Oi jk = Other GHG emissions attributable to type of activity j at establishment k for the years i corresponding to 2007, 2008, 2009 and 2010, in metric tonnes CO2 equivalent;
k = Establishment covered in the sector beginning in 2013;
Pi jk = Total quantity of reference units produced or used at establishment k for type of activity j during the years i corresponding to 2007, 2008, 2009 and 2010.
Equation 3-9 Average intensity of other GHG emissions attributable to a type of activity in the sector for the period 2007-2010
Where:
IO av(S) j = Average intensity of other GHG emissions attributable to type of activity j in the sector for the period 2007-2010, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2007-2010;
l = Number of covered establishments as of 2013 in the sector;
GHG Oi jk = GHG other emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent;
k = Covered establishment as of 2013 in the sector;
PRijk = Total quantity of reference units produced or used by establishment k for to type of activity j for year i.
(3.2) Calculation methods for the years 2015 to 2020
Equation 3-10 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is considered on a sectoral basis for the years 2015 to 2020

_ _
|(6 - x) I2013j + xI2020s j |
Ai j = max|_________________________;I2020s j| × PRi j
|_ 6 _|
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018,2019 and 2020;
j = Type of activity;
max = Maximum value, representing the greater of the 2 intensity values calculated;
6 = 6 years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to type of activity j at the establishment for the years 2013 and 2014 calculated using equation 2-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
4. Covered establishment as of 2013 that does not possess GHG emissions data for 2007-2010, covered establishment after 2013, covered establishment as of 2018 and covered establishment referred to in section 2.1 that is not considered on a sectoral basis
(4.1) Calculation method for the years 2013 and 2014
Equation 4-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 that is not considered on a sectoral basis for the years 2013 and 2014
Ai j = Idepj × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity;
Idep j = Intensity target of GHG emissions attributable to type of activity j at an establishment, calculated using equation 4-2, in metric tonnes CO2 equivalent per reference unit;
PRi j= Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-2 Calculation of the intensity target of GHG emissions for the years 2013 and 2014 by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013
Idepj = IFPdep j + (R × ICdep j) + IOdep j
Where:
Idepj= Intensity target of GHG emissions attributable to type of activity j at an establishment, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFPdep j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-3, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
R = Multiplication factor for GHG combustion emissions at the establishment calculated using equations 4-6 and 4-7 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
ICdep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-4, in metric tonnes CO2 equivalent per reference unit;
IOdep j= Average intensity of other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-5, in metric tonnes CO2 equivalent per reference unit.
Equation 4-3 Average intensity of GHG fixed process emissions by type of activity at a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
IFPdep j = Average intensity of GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG FPi j = GHG fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-4 Average intensity of GHG combustion emissions by type of activity for a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
ICdep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG Ci j = GHG combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-5 Average intensity of other GHG emissions by type of activity for a covered establishment covered as of 2013 and without data for 2007-2010 or after 2013 for the reference years d-2 to d+1
Where:
IOdep j = Average intensity of other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHG Oi j = GHG other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-6 Calculation of the intensity multiplication factor for combustion emissions at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis
R = 0.80 × GFR + (1 - GFR)
Where:
R = Intensity multiplication factor for GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment, calculated using equation 4-7.
Equation 4-7 Calculation of the GFR ratio for an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis
Where:
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total GHG combustion emissions at the establishment;
i = Years d-2, d-1, d and d+1, when available, excluding the year in which the establishment is brought into service;
GHG GFRi = GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total GHG combustion emissions attributable to the use of fuel at the establishment for year i, in metric tonnes CO2 equivalent.
(4.2) Calculation method for the years 2015 to 2020 for covered establishments as of 2013 and for covered establishments after 2013
Equation 4-8 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is not considered on a sectoral basis for the years 2015 to 2020
Ai j = [IFPdep j + (R)(0.99)n ICdep j + (0.99)n IOdep j] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for an establishment for year i;
j = Type of activity;
i = Each year in the period 2015-2020 for which the emitter is required to cover GHG emissions;
IFPdep j = Average intensity of the GHG fixed process emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-3, in metric tonnes CO2 equivalent per reference unit;
R = Multiplication factor for GHG combustion emissions at the establishment calculated using equations 4-6 and 4-7 or, in the case of an establishment producing pulp and paper described by NAICS code 3221 or 321216, a value of 1;
0.99 = Proportion corresponding to an annual improvement of 1% in the intensity factor;
n = i - (d + 2);
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
ICdep j = Average intensity of the GHG combustion emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-4, in metric tonnes CO2 equivalent per reference unit;
IOdep j = Average intensity of the other GHG emissions attributable to type of activity j at the establishment for the years d-2 to d+1, when available, excluding the year in which the establishment is brought into service, calculated using equation 4-5, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.3) Calculation method for the years 2018 to 2020 for covered establishments as of 2018
(4.3.1) Covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that possesses all the GHG emissions data for years d-2 to d
Equation 4-9 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that possesses GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + R × IC dep j × ac,i + IO dep j × aO,i] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-10, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold; in the case of a dismembering establishment covered as of 2018, d corresponds to the year 2016;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equation 4-11 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-13, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year -i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 4-14, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-10 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
I FP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-11 Calculation of the intensity multiplication factor for combustion emissions at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-12.
Equation 4-12 Calculation of the GFR ratio for a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-13 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-14 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses GHG emissions data for years d-2 to d
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d-2, d-1 and d;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.3.2) Covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 4-15;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 4-21.
Equation 4-15 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + R ×IC dep j × ac,i + IO dep j × aO,i ] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-16, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-17 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-19, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-20, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-16
- Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
- Calculation of the intensity of fixed process emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-17 Calculation of the intensity multiplication factor for combustion emissions at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-18.
Equation 4-18 Calculation of the GFR ratio for a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-19
- Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
- Calculation of the intensity of combustion emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-20
- Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Calculation of the intensity of other emissions by type of activity, for years 2021 to 2023, at a covered establishment as of 2013, that does not possess data for years 2007-2010 and does not possess data for at least 3 of years d-2 to d+1, or at a covered establishment after year 2013 that does not possess data for at least 3 of years d-2 to d+1
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-21 Calculation of the number of GHG emission units allocated without charge for a covered establishment as of 2018 that is not considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = (ECTOTA L i × EF × ac,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
ECTOTAL i = Energy consumption in year i, calculated using equation 4-22, in GJ;
EF= Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGO i = other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 4-21.1 Calculation of the emission factor for natural gas
EF = ((EFCO2 × 1,000) + (EFCH4 × GWPCH4) + (EFN2O × GWPN2O)) × 0.000001
Where:
EFCO2 = Emission factor of CO2 for natural gas taken from Table 1-4 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in kilograms of CO2 per GJ;
1,000 = Conversion factor, kilograms to grams;
EFCH4 = Emission factor of CH4 for natural gas, for industrial uses, taken from Table 1-7 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in grams of CH4 per GJ;
GWPCH4 = Global warming potential of CH4 taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
EFN2O = Global warming potential of N2O taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
GWPN2O = Global warming potential of N2O taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15);
0.000001 = Conversion factor, grams to metric tonnes;
Equation 4-22 Calculation of energy consumption for year i at a covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d to d+2
Where:
ECTOTAL i = Energy consumption in year i, in GJ;
i = Each year of the period 2018-2020 for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.3.3) Covered establishment as of 2018 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 4-23;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 4-21.
Equation 4-23 Calculation of the number of GHG emission units allocated without charge for the years 2018 to 2020 for a covered establishment as of 2018 that does not possess a determined reference unit and that possesses all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = [(ECTOTAL,av × EF × ac,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)]
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 4-24, in GJ;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGFPav = Average fixed process emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGO,av = Average other emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 4-24 Calculation of average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, at a covered establishment as of 2018 that possesses all the GHG emissions data for those years
Where:
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in GJ;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.4) Calculation method for the years 2018 to 2020 for the covered establishments referred to in section 2.1.
(4.4.1) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Equation 4-25 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-3 to e-1 are all available
Aij = [IFPdep j × aFP,i + R × Ic dep j × ac,i + IO dep j × aO,i] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-26, in metric tonnes CO2 equivalent per reference unit;
e = Year of application for registration for the system;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-27 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-29, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 4-30, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-26 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-27 Calculation of the intensity multiplication factor for combustion emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for GHG combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-28.
Equation 4-28 Calculation of the GFR ratio for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
e = Year of registration for the system;
i = Years e-3, e-2 and e-1;
GHG GFRi = combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-29 Calculation of the intensity of combustion emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-30 Calculation of the intensity of other emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-3, e-2 and e-1;
GHG Oij = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4.4.2) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 4-31;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 4-37.
Equation 4-31 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-3 to e-1 are not all available
Aij = [IFP dep j × aFP,i + R × IC dep j × aC,i + IO dep j × aO,i ] × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-32, in metric tonnes CO2 equivalent per reference unit;
e = Year of application for registration for the system;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
R = Intensity multiplication factor for combustion emissions at the establishment calculated using equation 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-35, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-36, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-32 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-33 Calculation of the intensity multiplication factor for combustion emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
R = 0.80 × GFR + (1 – GFR)
Where:
R = Intensity multiplication factor for combustion emissions at the establishment;
0.80 = Proportion corresponding to 80% of the GFR ratio;
GFR = Ratio between the total GHG combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment, calculated using equation 4-34.
Equation 4-34 Calculation of the GFR ratio for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
GFR = Ratio between the total combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, and total combustion emissions at the establishment;
e = Year of registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG GFRi = Combustion emissions attributable to the use of natural gas, gasoline, diesel, heating oil, propane, petroleum coke and coal, excluding refinery fuel gas, at the establishment during year i, in metric tonnes CO2 equivalent;
GHG Ci = Total combustion emissions attributable to the use of fuel at the establishment during year i, in metric tonnes CO2 equivalent.
Equation 4-35 Calculation of the intensity of combustion emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-36 Calculation of the intensity of other emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year of application for registration for the system;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 4-37 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020 and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
Ai = (ECTOTAL i × EF × ac,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
ECTOTAL i = Average energy consumption for year i, calculated using equation 4-38, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGO i = Average other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1).
Equation 4-38 Calculation of average energy consumption for years e and e+1 of an establishment for the years 2018 to 2020 that is not considered on a sectoral basis and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
Where:
ECTOTAL i = Energy consumption for year i, in GJ;
i = Each year of the 2018-2020 period for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k, excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k, including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(4.4.3) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 4-39;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 4-37.
Equation 4-39 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2018 to 2020, that does not possess a determined reference unit and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Ai = [(ECTOTAL,av × EF × ac,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)]
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2018-2020 for which the emitter is required to cover its GHG emissions;
ECTOTAL,av = Average energy consumption for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 4-40, in GJ;
e = Year of application for registration for the system;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGFP,av = Average fixed process emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1);
GHGO,av = Average other emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, where n=i-(e+1).
Equation 4-40 Calculation of average energy consumption for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Where:
ECTOTAL,av = Average energy consumption for years e-1 to e+1 or for years e to e+2 where e-1 is the year in which the establishment became operational, in GJ;
e = Year of application for registration for the system;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
n = Total number of types of fuel used;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
5. Covered establishment as of 2013 that does not possess GHG emissions data for 2007-2010 and covered establishment after 2013 that is considered on a sectoral basis
(5.1) Calculation method for the years 2013 and 2014
Equation 5-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is considered on a sectoral basis for the years 2013 and 2014
Ai j = max(Idep j;I2020s j) × PRi j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for the establishment for year i;
i = Each year in the first compliance period, namely 2013 and 2014;
j = Type of activity;
max = Maximum value, representing the greater of the intensity values Idep j and I2020s j;
Idep j = Intensity target of the GHG emissions attributable to type of activity j at an establishment, calculated using equation 4-2, in metric tonnes CO2 equivalent per reference unit;
I2020s j = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(5.2) Calculation method for the years 2015 to 2020
(5.2.1) Establishment considered on a sectoral basis for the years 2015 to 2017 and establishment considered on a sectoral basis that possesses all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational for the years 2018 to 2020
Equation 5-2 Calculation of the number of GHG emission units allocated without charge by type of activity for an establishment covered as of 2013 and without data for 2007-2010 or covered after 2013 that is considered on a sectoral basis for the years 2015 to 2020
_ _
|m Idep j + (n - m)I2020S j |
Ai j = max |__________________________;I2020S j| × PRi j
|_ n _|
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j for the establishment for year i;
i = Each year in the period 2015-2020 for which the emitter is required to cover GHG emissions;
j = Type of activity;
max = Maximum value, representing the greater of the intensity values calculated;
m = 2020 – i;
n = Minimum, representing the lesser of 6 and (2020 – (d+1));
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold.
Idep j = Intensity target of the GHG emissions attributable to type of activity j at an establishment, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
I2020Sj = Intensity target of GHG emissions attributable to type of activity j in the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(5.2.2) Establishment considered on a sectoral basis that does not possess all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational for the years 2018 to 2020
Equation 5-3 Calculation of the total quantity of GHG emission units allocated free of charge by type of activity at an establishment covered from 2018 that is considered on a sectoral basis for the years 2018 to 2020 and that does not possess all the GHG emissions data for the years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Where:
Ai = Total number of GHG emission units allocated free of charge for an establishment for year i;
i = Each year of the period 2018-2020 for which the emitter is required to cover GHG emissions;
max = Maximum value between the 2 calculated values;
j = Type of activity;
m = Total number of type of activities of the establishment;
I2020S = Target intensity for GHG emissions attributable to type of activity j of the sector for the year 2020, calculated using equation 3-2, in metric tonnes CO2 equivalent per reference unit;
PRi j = Total quantity of reference units produced or used by the establishment for the type of activity j during year i;
p = 2020-i;
q = Maximum value between 1 and p;
ECTOTAL i = Energy consumption of year i, calculated using equation 4-22, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2/GJ equivalent, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2);
d = First year for which the establishment’s GHG emissions are equal to or exceed the emissions threshold;
GHGFP i = Fixed process emissions of the establishment for year i, in metric tonnes equivalent CO2;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishment covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2);
GHGO i = other emissions of the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2018 and 2020, as defined in Table 4 of this Appendix, with n=i-(d+2).
6. Special cases
(6.1) Establishment producing aluminum using Söderberg anode technology after 2014
Equation 6-1 Calculation of the intensity target of GHG emissions for year 2020 at an establishment producing aluminum using Söderberg anode technology after 2014
I2020 sod = I 2020s electrolysis + (I2020s baked anode × 0.55)
Where:
I2020 sod = Intensity target of GHG emissions for year 2020 at an establishment producing aluminum using Söderberg anode technology after 2014, in metric tonnes CO2 equivalent per metric tonne of liquid aluminum;
I2020s electrolysis = Intensity target of GHG emissions for year 2020 in the aluminum sector for the type of activity “aluminum production”, calculated using equation 3-2 based on data from establishments using prebaked anode technology, in metric tonnes CO2 equivalent per metric tonne of liquid aluminum;
I2020s baked anode = Intensity target of GHG emissions for year 2020 in the aluminum sector for the type of activity “baked anode production”, calculated using equation 3-2 based on data from establishments using prebaked anode technology, in metric tonnes CO2 equivalent per metric tonne of baked anodes;
0.55 = Ratio between consumed baked anode production and aluminum production, in metric tonnes of baked anodes per metric tonne of liquid aluminum.
(6.2) Establishment producing alumina from bauxite
Equation 6-2 Calculation of the total quantity of GHG emission units allocated without charge for an establishment producing alumina from bauxite for 2013 to 2020
Ai = 0.40 × PRi
Where:
Ai = Total quantity of GHG emission units allocated without charge for an establishment producing alumina from bauxite for year i;
i = Each year included in the period 2013-2020;
0.40 = Intensity target of GHG emissions attributable to the production of alumina from bauxite for 2013 to 2020, in metric tonnes CO2 equivalent per metric tonne of aluminum hydrate (AI2O3 × 3 H2O) expressed as alumina (AI2O3) equivalent, 1 metric tonne of aluminum hydrate in alumina equivalent corresponding to 0.6536 metric tonnes aluminum hydrate;
PRi = Total quantity of aluminum hydrate expressed as alumina (Al2O3) equivalent produced at the establishment in year i, in metric tonnes.
(6.3) Establishment producing rigid foamed insulation
The total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation is calculated, for 2013 and 2014, using equation 2-1, where “I2013” is calculated using equations 6-3 to 6-6 and, for 2015 to 2020, using equation 6-7:
Equation 6-3 Calculation of the intensity target of GHG emissions attributable to an establishment producing rigid foamed insulation for 2013 and 2014
I 2013 = IFP + (R × IC) + IO
Where:
I 2013 = Intensity target of GHG emissions at the establishment for 2013 and 2014, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, calculated using equation 6-4, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
R = Multiplication factor for GHG combustion emissions intensity at the establishment, calculated using equations 4-6 and 4-7;
IC = Intensity of GHG combustion emissions at the establishment for year 2010, calculated using equation 6-5, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IO = Intensity of other GHG emissions at the establishment for year 2010, calculated using equation 6-6, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-4 Intensity of GHG fixed process emissions at an establishment producing rigid foamed insulation for year 2010
GHG FP2010
IFP = __________
PR2010
Where:
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG FP2010 = GHG fixed process emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-4.1 Average intensity of GHG fixed process emissions at an establishment producing rigid foamed insulation for years 2010 to 2012
Where:
IFP = Average intensity of GHG fixed process emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
i = Each year included in the period 2010-2012;
GHG FPi = GHG fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, in board feet of rigid foamed insulation.
Equation 6-5 Intensity of GHG combustion emissions at an establishment producing rigid foamed insulation for year 2010
GHG C 2010
IC = __________
PR 2010
Where:
IC = Intensity of GHG combustion emissions at theestablishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG C 2010 = GHG combustion emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR 2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-5.1 Average intensity of GHG combustion emissions at an establishment producing rigid foamed insulation for years 2010 to 2012
Where:
IC = Average intensity of GHG combustion emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
i = Each year included in the period 2010-2012;
GHG Ci = GHG combustion emissions at the establishment in year i, in metric tonnes CO2 equivalent;
PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, in board feet of rigid foamed insulation.
Equation 6-6 Intensity of other GHG emissions at an establishment producing rigid foamed insulation for year 2010
GHG O 2010
IO = __________
PR 2010
Where:
IO = Intensity of other GHG emissions at the establishment for year 2010, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
GHG O2010 = Other GHG emissions at the establishment for year 2010, in metric tonnes CO2 equivalent;
PR 2010 = Total quantity of rigid foamed insulation produced at the establishment in year 2010, in board feet of rigid foamed insulation.
Equation 6-6.1 Average intensity of other GHG emissions at an establishment producing rigid foamed insulation for years 2010 to 2012
Where:
IO = Average intensity of other GHG emissions at the establishment for years 2010 to 2012, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
i = Each year included in the period 2010-2012;
GHG Oi = Other GHG emissions at the establishment for year i, in metric tonnes CO2 equivalent;
PR i = Total quantity of rigid foamed insulation produced at the establishment in year i, in board feet of rigid foamed insulation.
Equation 6-7 Calculation of the total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation for 2015 to 2020
Ai [IFP + R(0.99)n IC + (0.99)n IO] × PRi
Where:
Ai = Total quantity of GHG emission units allocated without charge for an establishment producing rigid foamed insulation for year i;
i = Each year included in the period 2015-2020 for which the emitter is required to cover its GHG emissions;
IFP = Intensity of GHG fixed process emissions at the establishment for year 2010, calculated using equation 6-4, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
R = Multiplication factor for GHG combustion emissions intensity at the establishment, calculated using equations 4-6 and 4-7;
0.99 = Proportion corresponding to an annual improvement of 1% of the intensity factor;
n = i – 2015+1;
IC = Intensity of GHG combustion emissions at the establishment for year 2010, calculated using equation 6-5, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
IO = Intensity of other GHG emissions at the establishment for year 2010, calculated using equation 6-6, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation;
PRi = Total quantity of rigid foamed insulation produced at the establishment in year i, in board feet of rigid foamed insulation.
Equation 6-7.1 Calculation of the intensity target of fixed process emissions at an establishment fabricating rigid foamed insulation
IFP2020j = IFP
Where:
IFP2020j = Intensity of fixed process emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
IFP = Average intensity of GHG fixed process emissions at the establishment for years 2010 to 2012, calculated using equation 6-4.1, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-7.2 Calculation of the intensity target for combustion emissions at an establishment fabricating rigid foamed insulation
IC2020j = R × 0.9415 × I C
Where:
IC2020j = Intensity of combustion emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equations 4-6 and 4-7;
0.9415 = Proportion corresponding to an annual improvement of 1% in the intensity factor during years 2015 to 2020;
IC = Average intensity of GHG combustion emissions at the establishment for years 2010 to 2012, calculated using equation 6-5.1, in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
Equation 6-7.3 Calculation of the intensity target of other emissions at an establishment fabricating rigid foamed insulation
IO2020j = 0.9415 × IO
Where:
IO2020j = Intensity of other emissions calculated for year 2020 for type of activity j;
j = Type of activity, namely the fabrication of rigid foamed insulation;
0.9415 = Proportion corresponding to an annual improvement of 1% in the intensity factor during years 2015 to 2020;
IO = Average intensity of other GHG emissions at the establishment for years 2010 to 2012, calculated using equation 6-6.1 in metric tonnes CO2 equivalent per board foot of rigid foamed insulation.
(6.4) Establishment producing catalytic zinc and using hydrogen as a fuel to supply its furnaces
The total quantity of GHG emission units allocated without charge for an establishment producing zinc and using hydrogen as a fuel to supply its furnaces is calculated using equation 6-8 for 2013 and 2014, using Equation 6-9 for 2015 to 2020 and using equation 6-10.1 for 2021 to 2023:
Equation 6-8 Calculation of the total quantity of GHG emission units allocated without charge to an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for 2013 and 2014
Ai j = (I2013j + FH i) × PRi j
Where:
Ai j = Total quantity of GHG emission units allocated without charge for cathodic zinc production at the establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
j = Type of activity, namely cathodic zinc production;
I2013j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i, calculated using equation 6-10;
PRi j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc.
Equation 6-9 Calculation of the total quantity of GHG emission units allocated without charge to an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for 2015 to 2020
Where:
Ai j = Total quantity of GHG emission units allocated without charge for cathodic zinc production at the establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
j = Type of activity, namely cathodic zinc production;
6 = Six years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
I2020j = Intensity target of GHG emissions attributable to the production of cathodic zinc at the establishment for year 2020, calculated using equation 2-8, in metric tonnes CO2 equivalent per metric tonne of cathodic zinc;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i calculated using equation 6-10;
PRi j = Total quantity of cathodic zinc produced at the establishment for year i, in metric tonnes of cathodic zinc.
Equation 6-10 Calculation of the adjustment factor for the partial or total loss of hydrogen supply
>
Where:
FHi = Adjustment factor for the partial or total loss of hydrogen supply for year i;
i = Each year included in the period 2013-2020 for which the emitter is required to cover its GHG emissions;
0.060 = Minimum ratio between the annual consumption of hydrogen and the annual production from 2007 to 2010, in cubic kilometres of hydrogen per metric tonne of cathodic zinc;
H2,i = Hydrogen consumption for year i, in cubic kilometres;
PRi j = Total quantity of cathodic zinc produced at the establishment for year i, in metric tonnes of cathodic zinc;
0.3325 = Volume equivalency factor for hydrogen and natural gas, in cubic kilometres of natural gas per cubic kilometre of hydrogen;
1.889 = Emission factor for natural gas, in metric tonnes CO2 equivalent par cubic kilometre of natural gas;
0.80 = Proportion corresponding to 80% combustion emission intensity;
0.99 = Proportion corresponding to an annual improvement of 1% of the intensity factor;
n = Value of 0 for 2013 and 2014, or (i-2015 +1) for 2015 to 2020.
Equation 6-10.1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment producing cathodic zinc and using hydrogen as a fuel to supply its furnaces for the years 2021 to 2023
Ai j = [( IC stan j × aC,i + IO stan j × aO,i + FHi) × PRi,j + max(GHGFP i,j; IFP stan j × PR i,j) × aFP,i] × AFi,j
Where:
Ai j = Total quantity of GHG emission units allocated without charge for the production of cathodic zinc at the establishment for year i;
i = Each year included in the period 2021 to 2023;
j = Type of activity, namely the production of cathodic zinc;
IC stan j = Standard intensity of combustion emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i, calculated using equation 6-10.2;
max = Maximum value between GHGFP i,j and IFP stan j × PRi,j;
GHGFP I,j = Fixed process emissions attributable to the type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
IFP stan j = Standard intensity of fixed process emissions attributable to the production of cathodic zinc at the establishment for the years 2021 to 2023, calculated using equation 8-26, in metric tonnes CO2 equivalent per reference unit;
PR i j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AFi,j = Assistance factor for the production of cathodic zinc for year i, as defined in Table 7 of this Appendix.
Equation 6-10.2 Calculation of adjustment factor for the partial or total loss of hydrogen supply
Where:
FH i = Adjustment factor for the partial or total loss of hydrogen supply for year i;
i = Each year included in the period 2021 to 2023;
0.065 = Ratio between the annual consumption of hydrogen and the annual production during the year used to calculate the minimum annual intensity of combustion emissions, in cubic kilometres of hydrogen per metric tonne of cathodic zinc;
H2,i = Hydrogen consumption for year i, in cubic kilometres;
PRi j = Total quantity of cathodic zinc produced at the establishment in year i, in metric tonnes of cathodic zinc;
0.3325 = Volume equivalency factor for hydrogen and natural gas, in cubic kilometres of natural gas per cubic kilometre of hydrogen;
1.889 = Emission factor for natural gas, in metric tonnes CO2 equivalent per cubic kilometre of natural gas;
0.95 = Proportion corresponding to 95% of the minimum intensity of combustion emissions;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix.
6.5 New facility or production of a new reference unit
An emitter must, as soon as possible, notify the Minister of any new facility on the site of one of the emitter’s covered establishments or of the production of any new reference unit by submitting the following information:
(1) the name and contact information of the enterprise and of the establishment where the new facility is located or where the new reference unit is produced;
(2) the business number assigned to the emitter pursuant to the Act respecting the legal publicity of enterprises (chapter P-44.1), along with the identification number assigned under the National Pollutant Release Inventory of the Government of Canada, if any;
(3) where production at the new facility replaces all or some production at one of the emitter’s establishments or facilities in Québec that closed after 1 January 2008, the name and contact information of the establishment or facility that closed;
(4) the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure.
(6.5.1) New facility at which production does not replace production at another establishment or facility
(1) Until 31 December 2017, the quantity of GHG emission units allocated without charge to an emitter to take into account a new facility located on the site of one of the emitter’s covered establishments at which production does not replace production at another establishment or facility is calculated
(a) in the case of a facility that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of a facility that is considered on a sectoral basis, using equations 5-1 and 5-2.
(2) For the years 2018 to 2020, the quantity of GHG emission units allocated without charge to an emitter for a new facility located on the site of one of the emitter’s covered establishments at which production does not replace production at another establishment or facility must be calculated using Equation 6.10-3 for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available.
Equation 6-10.3 Calculation of the number of GHG emission units allocated without charge for a new facility at a covered establishment for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available
ANF i = ((ECNF TOTAL i× EF × aC,i) + (GHGNF FP i × aFP,i) + (GHGNF O i × aO,i))
Where:
ANF i = Total number of GHG emission units allocated without charge for a new facility for year i;
i = Each year in the period for which the emitter is required to cover GHG emissions;
ECNF TOTAL i = Energy consumption of the new facility in year i, calculated using equation 6-10.4, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2);
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGNF FP i = Fixed process emissions of the new facility for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2);
GHGNF O i = Other emissions of the new facility for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 4 of this Appendix, where n=i-(d+2).
Equation 6-10.4 Calculation of the energy consumption for year i of a new facility at a covered establishment for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available
Where:
ECNF TOTAL i = Energy consumption of the new facility in year i, in GJ;
i = Each year of the period for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned, expressed
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(3) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for a new facility situated on the site of a covered establishment that is not considered on a sectoral basis must be calculated
(a) for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available, using equation 6-10.3;
(b) for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available, using equations 6-10.5 and 7-1.
Equation 6-10.5 Calculation of the number of GHG emission units allocated without charge by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the years 2021 to 2023 during the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
ANF i j = ( IFP stan NF j × aFP,i + IC stan NF j × aC,i + IO stan NF j +× aO,i) × PR i,j × AFi,j
Where:
ANF i j = Total number of GHG emission units allocated without charge by type of activity j at a new facility for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP stan NF j = Standard intensity of fixed process emissions attributable to type of activity j of the new facility using equation 6-10.7, in metric tonnes CO2 equivalent per reference unit;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
IC stan NF j = Standard intensity of GHG combustion emissions attributable to type of activity j at the new facility using equation 6-10.7, in metric tonnes CO2 equivalent per reference unit;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
IO stan NF j = Standard intensity of other emissions attributable to type of activity j at the new facility calculated using equation 6-10.8, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix for a new facility covered prior to 2021 and in Table 6 of this Appendix for a new facility covered as of 2021, where n=i-(d+2);
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 6-10.6 Calculation of the standard intensity of fixed process emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period in which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IFP stan NF j = Standard intensity of fixed process emissions attributable to the type of activity j of the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGFP NF i j = Fixed process emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 6-10.7 Calculation of the standard intensity of combustion emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IC stan NF j = Standard intensity of GHG combustion emissions attributable to type of activity j at the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGC NF i j = Combustion emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 6-10.8 Calculation of the standard intensity of other emissions by type of activity at a new facility of a covered establishment that is not considered on a sectoral basis for the period where the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available
Or
Where:
IO stan NF j = Standard intensity of other emissions attributable to type of activity j at the new facility for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational;
j = Type of activity;
d = First year for which the GHG emissions of the new facility are equal to or exceed the emissions threshold;
GHGO NF i j = Other emissions attributable to type of activity j at the new facility for year i, in metric tonnes CO2 equivalent;
PR,ij = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(4) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for a new facility situated on the site of a covered establishment that is considered on a sectoral basis must be calculated
(a) for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are not all available, using equation 6-10.3;
(b) for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the new facility became operational, are all available, using equations 6-10.9 and 7.1.
Equation 6-10.9 Calculation of the number of GHG emission units allocated without charge by type of activity at a new facility at a covered establishment that is considered on a sectoral basis for the years 2021 to 2023
ANF i j = I(S NF)i,j × PR i,j × AFi,j
Where:
ANF i j = Total number of GHG emission units allocated without charge by type of activity j at a new facility for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
I(S NF) i,j = Intensity of GHG emissions attributable to type of activity j at new facilities in the sector for year i, determined in accordance with Tables 1 to 2 of this Appendix, in metric tonnes CO2 equivalent per reference unit;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
(6.5.2) New facility of an emitter at which production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008
The quantity of GHG emission units allocated without charge to an emitter to take into account a new facility located on the site of one of the emitter’s covered establishments at which production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008 is calculated.
(1) for any annual quantity of reference units produced or used by the new facility not exceeding the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of a facility that is not considered on a sectoral basis, using equations 1-1 and 2-1 to 2-9 and applying equations 2-2 to 2-8 based on data from the closed establishment or facility;
(b) in the case of a facility considered on a sectoral basis, using equations 1-1 and 3-1 to 3-10 and applying equations 3-2 to 3-9 based on data from the closed establishment or facility;
(2) for any annual quantity of reference units produced or used by the new facility that exceeds the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of a facility that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of a facility considered on a sectoral basis, using equations 5-1 and 5-2.
(6.5.3) Production of a new reference unit
(1) until 2020, the quantity of GHG emission units allocated without charge to an emitter for the production of a new reference unit by one of its covered establishments must be calculated using equation 4-21 for the period during which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available;
(2) for the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for the production of a new reference unit by a covered establishment must be calculated
(a) in the case of an establishment that is not considered on a sectoral basis, for the period during which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available, using equation 11-5;
(b) in the case of an establishment that is not considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are all available, using equations 11-1 to 11-4, which apply from 2018;
(c) in the case of an establishment that is considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are not all available, using equation 11-5;
(d) in the case of an establishment that is considered on a sectoral basis, for the period during which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the first year of production of the new reference unit, are all available, using equation 9-1.
(6.6) Establishment covered after 2013, but prior to 2021, at which production replaces all or some production at one of the emitter’s establishments or facilities in Québec that closed after 1 January 2008
Every emitter, at one of whose establishments covered after 2013 production replaces all or some production at another of the emitter’s establishments or facilities in Québec that closed after 1 January 2008, must, as soon as possible, notify the Minister by submitting the following information:
(1) the name and contact information of the enterprise and the establishment;
(2) the business number assigned to the emitter pursuant to the Act respecting the legal publicity of enterprises (chapter P-44.1), along with the identification number assigned under the National Pollutant Release Inventory of the Government of Canada, if any;
(3) the name and contact information of the replaced establishment or facility;
(4) the quantity, by type of activity, of reference units produced or used at the closed establishment or facility.
The quantity of GHG emission units allocated without charge to the emitter for the establishment is calculated
(1) for any annual quantity of reference units produced or used at the establishment not exceeding the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of an establishment that is not considered on a sectoral basis, using equations 1-1 and 2-1 to 2-9 and applying equations 2-2 to 2-8 based on data from the closed establishment or facility;
(b) in the case of an establishment that is considered on a sectoral basis, using equations 1-1 and 3-1 to 3-10 and applying equations 3-2 to 3-9 based on data from the closed establishment or facility;
(2) for any annual quantity of reference units produced or used at the establishment that exceeds the average annual quantity of reference units produced or used, by type of activity, at the closed establishment or facility during the 3 complete years preceding its closure:
(a) in the case of an establishment that is not considered on a sectoral basis, using equations 4-1 to 4-8;
(b) in the case of an establishment that is considered on a sectoral basis, using equations 5-1 and 5-2.
(6.7) Enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity
(1) Until 2020, the quantity of GHG emission units allocated without charge to an emitter for an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in another Canadian province or territory or in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity must be calculated using equation 6-11.
(2) For the years 2021 to 2023, the quantity of GHG emission units allocated without charge to an emitter for an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity must be calculated using equation 6-11.1.
Equation 6-11 Calculation of the total GHG emission units allocated free of charge to an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity

PiNon-WCI
Ai = ________ × EiNon-WCI
PiWCI
Where:
Ai = Number of emission units allocated free of charge for year i;
PiNon-WCI = Weighted average sale price of emission allowances of year i at an auction held during year i by other Canadian provinces or territories or by US states where a system covering electricity production in particular has been established by an entity that is not a partner entity, in US dollars;
PiWCI = Weighted average sale price of emission allowances of year i at an auction held during year i by Québec or other Canadian provinces or territories or by US states where a system covering electricity production in particular has been established by a partner entity, in US dollars;
EiNon-WCI = Annual GHG emissions for year i relating to the production of electricity acquired from another Canadian province or territory or from a US state where producers are subject to a system established by an entity that is not a partner entity, in metric tonnes CO2 equivalent;
i = Each year of the 2013-2020 period for which the emitter is required to cover its emissions.
For the purposes of this equation, where the sale price of the emission allowances that is used for calculation is only available in Canadian dollars, the price must be converted in US dollars at the official conversion rate of the Bank of Canada at noon on the date of the auction.
Equation 6-11.1 Calculation of the total quantity of GHG emission units allocated without charge to an enterprise that acquires, for consumption of the enterprise or for sale in Québec, power generated in a US state where a system covering electricity production in particular has been established by an entity that is not a partner entity
Where:
Ai = Total quantity of GHG emission units allocated without charge for year i;
PiNon-WCI = Weighted average sale price of emission allowances of year i at an auction held during year i by US states where a system covering electricity production has been established by an entity that is not a partner entity, in US dollars;
PiWCI = Weighted average sale price of emission allowances of year i at an auction held during year i by Québec or US states where a system covering electricity production in particular has been established by a partner entity, in US dollars;
EiNon-WCI = Annual GHG emissions for year i relating to the production of electricity acquired from a US state where producers are subject to a system established by an entity that is not a partner entity, taking into account the new GWP values in metric tonnes CO2 equivalent;
i = Each year in the period 2021-2023 for which the emitter is required to cover its emissions.
(6.8) Copper foundry.
The total quantity of GHG emission units allocated free of charge to a copper foundry is calculated using equation 6-12 for years 2013 and 2014, using equation 6-13 for the years 2015 to 2020, and using equation 6-14 for the years 2021 to 2023:
Equation 6-12 Calculation of the total quantity of GHG emission units allocated free of charge to a copper foundry for years 2013 and 2014
Ai = (I2013cu × PR cu,i) + (I2013 RMS × PR RSM,i) + Arecycl ,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
i = Each year included in the first compliance period, namely 2013 and 2014;
I2013cu = Intensity target of GHG emissions attributable to the production of copper anodes at the establishment for years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
PRi,cu = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
I2013RSM = Intensity target for GHG emissions attributable to the treatment of gas from the recycling of secondary materials at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced into the process materials for year i, in metric tonnes CO2 equivalent;
Equation 6-13 Calculation of the total quantity of GHG emission units allocated free of charge to a copper foundry for years 2015 to 2020
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
i = Each year included in the second and third compliance periods, namely 2015, 2016, 2017, 2018, 2019 and 2020;
6 = Six years in the linear regression, namely 2015, 2016, 2017, 2018, 2019 and 2020;
x = (i – 2015) + 1;
I2013cu = Intensity target of GHG emissions attributable to the production of copper anodes at the establishment for years 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
I2020cu = Intensity target of GHG emissions attributable to the production of copper anodes, calculated using equation 2-8, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
PRi,cu, i = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
I2013RSM = Intensity target for GHG emissions attributable to gas from the recycling of secondary materials at the establishment for 2013 and 2014, calculated using equation 2-2, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
I2020RSM = Intensity target for GHG emissions attributable to the treatment of gas from the recycling of secondary materials, calculated using equation 2-8, in metric tonnes CO2 per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced in the process materials for year i, in metric tonnes CO2 equivalent.
For the application of equations 6-12 and 6-13, recycled secondary materials used in a process at a copper foundry are deemed to be all materials used in the process other than fuel, ore, reducing agents, materials used for slag purification, carbonated reactants and carbon electrodes.
Equation 6-14 Calculation of the total quantity of GHG emission units allocated free of charge for a copper foundry for the years 2021 to 2023
Ai = [( IC stan cu × aC,i × Pcu,i) + [max (GHGFP cu,i; IFP stan cu × P R cu,i)] × aFP,i] × AFcu,i + [( IC stan RSM × aC,i × PRSM,i) + Arecycl,i] × AFRSM,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper anodes at the establishment for year i;
IC stan cu = Standard intensity of combustion emissions attributable to the production of copper anodes at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
PR cu,i = Total quantity of copper anodes produced by the establishment during year i, in metric tonnes of copper anodes;
max = Maximum value between GHGFP cu,i and IFP stan cu x Pcu,i;
GHGFP CU,i = Fixed process emissions attributable to the production of copper anodes at the establishment for year I, in metric tonnes CO2 equivalent;
IFP stan cu = Standard intensity of fixed process emissions attributable to the production of copper anodes at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AFcu,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
IC stan RSM = Standard intensity of combustion emissions attributable to the treatment of gas from the recycling of secondary materials at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
PR RSM,i = Total quantity of secondary materials recycled at the establishment in year i, in metric tonnes of recycled secondary materials;
Arecycl,i = GHG emissions attributable to the carbon content of recycled secondary materials introduced into the process for year i, in metric tonnes CO2 equivalent;
AFRSM,i = Assistance factor for the treatment of gas from the recycling of secondary materials in year i, as defined in Table 7 of this Appendix.
For the application of Equation 6-14, recycled secondary materials used in a process at a copper foundry are deemed to be all materials used in the process other than fuel, ore, reducing agents, materials used for slag purification, carbonated reactants and carbon electrodes.
Equation 6-15 Calculation of the total quantity of GHG emission units allocated free of charge for the production of steel (slabs, billets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2) for the years 2021 to 2023
Ai,j = [( IC stan j × aC,i + IO stan j × aO,i) × PR i,j + max (GHGFP i,j; IFP stan j × PR i,j) × aFP,i] × AFi,j
Where:
A i,j = Total quantity of GHG emission units allocated free of charge by type of activity j for year i;
i = Each year included in the period from 2021 to 2023 for which the emitter is required to cover GHG emissions;
j = Type of activity, namely the production of steel (slabs, billets or ingots) or the production of metallic silicon or the production of ferrosilicon, reduced iron pellets or titanium dioxide (TiO2);
IC stan j = Standard intensity of combustion emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
PRi,j = Total quantity of reference units produced or used by the establishment for the type of activity j during year i;
max = Maximum value between GHGFPi,j and IFP stan j × PR i,j;
GHGFPi,j = Fixed process emissions attributable to the type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
IFP stan j = Standard intensity of fixed process emissions attributable to the type of activity j at the establishment for the years 2021 to 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per reference unit;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
AF i,j = Assistance factor for the type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 6-16 Calculation of the total quantity of GHG emission units allocated free of charge to a copper refinery for the years 2021 to 2023
Ai = [( IC stan cath × aC,i ) + ( IFP stan cath × aFP,i)] × PR cath,i × AFcath,i + [( GHGC,i RSM × aC,i)] × AFRSM,i
Where:
Ai = Total quantity of GHG emission units allocated free of charge for the production of copper cathodes at the establishment for year i;
IC stan cath = Standard intensity of combustion emissions attributable to the production of copper cathodes at the establishment for the years 2021 to 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per metric tonne of copper cathodes;
ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IFP stan cath = Standard intensity of fixed process emissions attributable to the production of copper cathodes at the establishment for the years 2021 to 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per metric tonne of copper cathodes;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
PR cath,i = Total quantity of copper cathodes produced at the establishment for year i, in metric tonnes of copper cathodes;
AFcath,i = Assistance factor for the production of copper cathodes for year i, as defined in Table 7 of this Appendix;
GHGC,i RSM = GHG combustion emissions attributable to the treatment of recycled secondary materials for year i, in metric tonnes CO2 equivalent;
AFRSM,i = Assistance factor for the treatment of recycled secondary materials for year i, as defined in Table 7 of this Appendix.
(7) Calculation of the total quantity of GHG emission units allocated without charge to an establishment for the years 2021 to 2023
Equation 7-1 Calculation of the total quantity of GHG emission units allocated without charge to an establishment for the years 2021 to 2023
  m 
Aestablishment i=Ai,j
  j=1  
Where:
Aestablishment i = Total quantity of GHG emission units allocated without charge to an establishment for year i for all types of activity j of the establishment listed in Table B of this Appendix;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
m = Total number of types of activity at the establishment;
j = Each type of activity at the establishment;
Ai, j = Number of GHG emission units allocated without charge by type of activity j for year i, calculated using equations 8-1, 8-1.1, 9-1, 10-1, 11-1, 11-5, 12-1, 13-1, 14-1, 14-5, 15-1, 6-10.1, 6-10.5, 6-10.9, 6-11.1, 6-14, 6-15 or 6-16.
(8) Establishment covered prior to 2021 that is not considered on a sectoral basis or establishment producing liquid aluminum using a side-worked prebaked anode technology
Equation 8-1 Calculation of the number of GHG emission units allocated without charge by type of activity for the years 2021 to 2023 at an establishment covered prior to 2021 that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology
Ai j= ( IFP stan j × aFP,i + IC stan j × aC,i + IO stan j × aO,i) × PR i,j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
j = Type of activity;
IFP stan j = Standard intensity of fixed process emissions attributable to type of activity j at the establishment for the years 2021 to 2023 using equation 8-2, 8-8 or equation 8-11, in metric tonnes CO2 equivalent per reference unit;
Ac,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
IC stan j = Standard intensity of GHG combustion emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using, as the case may be, equation 8-4, 8-9 or 8-13, or, in the case of an establishment producing alumina from bauxite, having a value of 0.4, in metric tonnes CO2 equivalent per reference unit;
AFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity of other emissions attributable to type of activity j at the establishment for the years 2021 to 2023 using equation 8-6, 8-10 or 8-17, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
P Ri,j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 8-1.1 Calculation of the number of GHG emission units allocated free of charge per type of activity for the years 2021 to 2023 at an establishment covered prior to 2021 that is not considered on a sectoral basis and does not possess a determined reference unit
Ai = [(ECTOTAL,av × EF × aC,i) + (GHGFP,av × aFP,i) + (GHGO,av × aA,i)] × AFi,j
Where:
Ai = Total number of GHG emission units allocated free of charge for year i;
i = Each year included in the period 2021 to 2023 for which the emitter is required to cover GHG emissions;
ECTOTAL,av = Average energy consumption for the reference years, calculated, as the case may be, using equation 4-24 or 4-40, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2/GJ equivalent, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i, as defined in Table 5 of this Appendix;
GHGFP,av = Average fixed process emissions at the establishment for the reference years, in metric tonnes CO2 equivalent, calculated using the new GWP values;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i, as defined in Table 5 of this Appendix;
GHGO,av = Average other emissions at the establishment for the reference years, in metric tonnes CO2 equivalent, calculated using the new GWP values;
ao,i = Cap adjustment factor for the allocation of other emissions for year i, as defined in Table 5 of this Appendix;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
j = Type of activity.
(8.1) Calculation method for standard intensities for an establishment using GHG emissions data for the years 2007 to 2010
Equation 8-2 Calculation of the standard intensity of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology for the years 2021 to 2023 and using GHG emissions data for the years 2007 to 2010
IFP stan j = CFP j × IFP2020 j
Where:
IFP stan j = Standard intensity of fixed process emissions for the period 2021-2023 for type of activity j;
j = Type of activity;
CFP j = Correction factor for the intensity of fixed process emissions for type of activity j, calculated using equation 8-3;
IFP2020 j = Intensity of fixed process emissions calculated for year 2020 for type of activity j, using equation 2-8.1, or using equation 6-7.1 in the case of the fabrication of rigid foamed insulation, using the old GWP values.
Equation 8-3 Calculation of correction factor for fixed process emissions to take into account the new GWP values
CFP j = av[GHGFP j2013 (new GWP) ;GHGFP j2014 (new GWP) ;GHGFP j2015 (new GWP) ]
GHGFP j2013 (old GWP) GHGFP j2014 (old GWP) GHGFP j2015 (old GWP)
Where:
CFP j = Correction factor for the intensity of fixed process emissions for type of activity j;
j = Type of activity;
av = Average fixed process emissions for the years 2013, 2014 and 2015;
GHGFP j = Fixed process emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values or the new GWP values, in metric tonnes CO2 equivalent, excluding unusable years;
Equation 8-4 Calculation of the standard intensity of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology and using GHG emissions data for the years 2007 to 2010
IC stan j = CC j × IC2020 j × CcR
Where:
IC stan j = Standard intensity of combustion emissions for the period 2021-2023 for type of activity j;
j = Type of activity;
CC j = Correction factor for the intensity of combustion emissions for type of activity j, calculated using equation 8-5;
IC2020 j = Intensity of combustion emissions calculated for year 2020 for type of activity j, using equation 2-8.2, or using equation 6-7.2 in the case of the fabrication of rigid foamed insulation, using the old GWP values;
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment, calculated using equation 8-4.1.
Equation 8-4.1 Calculation of the correction factor of the multiplication factor of combustion emissions at the establishment
CcR = max[1; 0.85/R]
Where:
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment;
max = Maximum value between 1 and 0.85/R;
R = Intensity multiplication factor for GHG emissions, calculated using equation 2-4, 4-6, 4-11, 4-17, 4-27 or 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1.
Equation 8-5 Calculation of correction factor for combustion emissions by type of activity to take into account the new GWP values
Ccj = av[GHGcj2013 (new GWP) ;GHGcj2014 (new GWP) ;GHGcj2015 (new GWP) ]
GHGcj2013 (old GWP) GHGcj2014 (old GWP) GHGcj2015 (old GWP)
Where:
Ccj = Correction factor for the intensity of combustion emissions for type of activity j;
j = Type of activity;
av = Average combustion emissions for the years 2013, 2014 and 2015;
GHGcj = Combustion emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values or the new GWP values in metric tonnes CO2 equivalent, excluding unusable years.
Equation 8-6 Calculation of the standard intensity of other emissions by type of activity at an establishment that is not considered on a sectoral basis or an establishment producing liquid aluminum using a side-worked prebaked anode technology for the years 2021 to 2023 using GHG emissions data for the years 2007 to 2010
IO stan j = CO j × IO2020 j
Where:
IO stan j = Standard intensity of other emissions for the period 2021-2023 for type of activity j;
j = Type of activity;
CO j = Correction factor for the intensity of other emissions for type of activity j, calculated using equation 8-7;
IO2020 j = Intensity of other emissions calculated for year 2020 for type of activity j, using equation 2-8.3, or using equation 6-7.3 For the fabrication of rigid foamed insulation, using the old GWP values.
Equation 8-7 Calculation of the correction factor for other emissions by type of activity to take into account the new GWP values
CO j = av[GHGO j2013 (new GWP) ;GHGO j2014 (new GWP) ;GHGO j2015 (new GWP) ]
GHGO j2013 (old GWP) GHGO j2014 (old GWP) GHGO j2015 (old GWP)
Where:
CO j = Correction factor for the intensity of other emissions for type of activity j;
j = Type of activity;
av = Average of other emissions for the years 2013, 2014 and 2015;
GHGO j = Other emissions for type of activity j at the establishment for the years 2013, 2014 and 2015, calculated using the old GWP values or the new GWP values, in metric tonnes CO2 equivalent, excluding unusable years.
(8.2) Calculation method for standard intensities for an establishment using no GHG emissions data for the years 2007 to 2010
Equation 8-8 Calculation of the standard intensity of fixed process emissions by type of activity at an establishment that is not considered on a sectoral basis for the years 2021 to 2023 and using no emissions data for the years 2007 to 2010
IFP stan j = IFP dep j
Where:
IFP stan j = Average standard intensity of fixed process emissions attributable to type of activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
IFP dep j = average intensity of fixed process emissions attributable to type of activity j at the establishment for the reference years, calculated using equation 4-3 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-10, 4-16, 4-26 or 4-32, in metric tonnes CO2 per reference unit, using the new GWP values.
Equation 8-9 Calculation of the standard intensity of combustion emissions by type of activity at an establishment that is not considered on a sectoral basis and using no GHG emissions data for the years 2007 to 2010
IC stan j = R × 0.99n × IC dep j × CcR
Where:
IC stan j = Average standard intensity of combustion emissions attributable to activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
R = Intensity multiplication factor for combustion emissions at the establishment, calculated using equation 4-6, 4-11, 4-17, 4-27 or 4-33 or, in the case of an establishment producing pulp and paper described by NAICS code 3221, having a value of 1;
n = i – (d+2) or n = i - (e+1), as the case may be;
d = First year for which the GHG emissions at the establishment are equal to or exceed the emissions threshold;
e = Year of application for registration for the system;
i = Year 2020;
Ic dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for the reference years, calculated using equation 4-4 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-13, 4-19, 4-29 or 4-35, in metric tonnes CO2 per reference unit, using the new GWP values.
CcR = Correction factor of the multiplication factor of the intensity of combustion emissions at the establishment, calculated using equation 8-4.1.
Equation 8-10 Calculation of standard intensity of other emissions by type of activity at an establishment that is not considered on a sectoral basis and using no emissions data for the years 2007 to 2010 for the years 2021 to 2023
IO stan j = 0.99n × IO dep j
Where:
Io stan j = Average standard intensity of other emissions attributable to type of activity j at the establishment for the reference years, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
n = i – (d+2) or n = i - (e+1), as the case may be;
d = First year for which GHG emissions of the establishment are equal to or exceed emissions threshold;
e = Year of application for registration for the system;
i = Year 2020;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for the reference years, calculated using equation 4-5 where the establishment possesses emissions data for at least 3 of years d-2 to d+1, or using equation 4-14, 4-20, 4-30 or 4-36, in metric tonnes CO2 per reference unit, using the new GWP values.
(8.3) (Revoked).
(9) Establishment producing cement, lime, prebaked anodes or aluminum by using a prebaked anode technology other than the side-worked technology, covered prior to 2021 that is considered on a sectoral basis for the years 2021 to 2023
Equation 9-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment producing cement, lime, prebaked anodes or aluminum using a prebaked anode technology other than the side-worked technology, covered prior to 2021 that is considered on a sectoral basis for the years 2021 to 2023
Ai j = I(S)i,j × PR i,j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year included in the period 2021 to 2023;
j = Type of activity;
I(S) i,j = Intensity of GHG emissions attributable to type of activity j in the sector for year i, determined in accordance with Tables 1 and 2 of this Appendix, in metric tonnes CO2 equivalent per reference unit;
PR i,j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
(9.1) Sectoral intensities in the aluminum sector
Table 1: Sectoral intensities in the aluminum sector
YearIntensity of GHG emissions for liquid aluminum production using a prebaked anode technology other than the side-worked technology (leaving the potroom) and for the aluminum production referred to in paragraphs 5 to 7 of Division C of this PartIntensity of GHG emissions for the production of baked anodes removed from furnace
20211.8130.3129
20221.7960.3102
20231.7790.3074
(9.2) Sectoral intensities in the cement sector
Table 2: Sectoral intensities in the cement sector
YearIntensity of GHG emissions for the production of clinker and the mineral additives added to the clinker produced
20210.7814
20220.7767
20230.7721
(9.3) Sectoral intensities in the lime sector
Table 3: Sectoral intensities in the lime sector
YearIntensity of GHG emissions for calcic lime productionIntensity of GHG emissions for dolomitic lime production
20211.1001.376
20221.0911.364
20231.0821.352
(10) Covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d
Equation 10-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 and that possesses GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i] × PRi j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-2, in metric tonnes CO2 equivalent per reference unit;
d = Year in which the coverage requirement begins;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
IC dep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-3, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-4, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 10-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis
Where:
I FP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d-2, d-1 and d;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 10-3 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d-2, d-1 and d;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 10-4 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d-2, d-1 and d;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(11) Covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 11-1;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 11-5.
Equation 11-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 and that does not possess all the GHG emissions data for years d-2 to d
Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i] × PRi j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-2, in metric tonnes CO2 equivalent per reference unit;
d = Year in which the coverage requirement begins;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-3, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-4, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 11-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 11-3 Calculation of the intensity of combustion emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IC dep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 11-4 Calculation of the intensity of other emissions by type of activity at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d
Or
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
d = Year in which the coverage requirement begins;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 11-5 Calculation of the number of GHG emission units allocated without charge for a covered establishment as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023 and that does not possess all the GHG emissions data for the years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = ((ECTOTAL i × EF × aC,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i)) × AFi,j
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
ECTOTAL i = Energy consumption in year i, calculated using equation 11-6, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
GHGO i = Other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
d = Year in which the coverage requirement begins;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 11-6 Calculation of energy consumption for a year at a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Where:
ECTOTAL i = Energy consumption in year i, in GJ;
i = Each year of the 2021-2023 period for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(12) Covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equation 12-1;
(2) in the case of an establishment for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equation 11-5.
Equation 12-1 Calculation of the number of GHG emission units allocated without charge for an establishment covered as of 2021 that is not considered on a sectoral basis for the years 2021 to 2023, that does not possess a determined reference unit and that possesses all the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational
Ai = [(ECTOTAL,av × EF × aC,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)] × AFij
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
d = Year in which the coverage requirement begins;
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 12-2 in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
GHGFP,av = Average fixed process emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
GHGO,av = Average other emissions at the establishment for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-d;
AFij = Maximum of assistance factors for each type of activity j at the establishment for year i, as defined in Table 7 of this Appendix.
Equation 12-2 Calculation of average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, at a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for those years
Where:
ECTOTAL,av = Average energy consumption for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, in GJ;
d = Year in which the coverage requirement begins;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
n = Total number of types of fuel used;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(13) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis for which the GHG emissions data for years e-3 to e-1 are all available
Equation 13-1 Calculation of the number of GHG emission units allocated without charge by type of activity for year 2021 to 2023 at an establishment that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i ] × PRi j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 13-2, in metric tonnes CO2 equivalent per reference unit;
e = Year preceding the year in which the coverage requirement begins;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 13-3, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 13-4, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 13-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
I FP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-3, e-2 and e-1;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 13-3 Calculation of the intensity of combustion emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-3, e-2 and e-1;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 13-4 Calculation of the intensity of other emissions for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e-1, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-3, e-2 and e-1;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
(14) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 14-1;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 14-5.
Equation 14-1 Calculation of the number of GHG emission units allocated without charge by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2021 to 2023 and for which the GHG emissions data for years e-3 to e-1 are not all available
Aij = [IFP dep j × aFP,i + IC dep j × aC,i + IO dep j × aO,i ] × PRi j × AFi,j
Where:
Ai j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 14-2, in metric tonnes CO2 equivalent per reference unit;
e = Year preceding the year in which the coverage requirement begins;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n =i-(e+1);
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 14-3, in metric tonnes CO2 equivalent per reference unit;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 14-4, in metric tonnes CO2 equivalent per reference unit;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i;
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 14-2 Calculation of the intensity of fixed process emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG FPi j = Fixed process emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 14-3 Calculation of the intensity of combustion emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IC dep j = Average intensity of GHG combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Ci j = Combustion emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 14-4 Calculation of the intensity of other emissions by type of activity at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available
Or
Where:
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
e = Year preceding the year in which the coverage requirement begins;
i = Years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational;
GHG Oi j = Other emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi j = Total quantity of reference units produced or used at the establishment for type of activity j during year i.
Equation 14-5 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2021 to 2023 and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
Ai = ( (ECTOTAL i × EF × aC,i) + (GHGFP i × aFP,i) + (GHGO i × aO,i) ) × AFi,j
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
ECTOTAL i = Energy consumption in year i, calculated using equation 14‐6, in GJ;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
e = Year preceding the year in which the coverage requirement begins;
GHGFP i = Fixed process emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
GHGO i = Other emissions at the establishment for year i, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
AFi,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix.
Equation 14-6 Calculation of the energy consumption for year i at a covered establishment referred to in section 2.1 that is not considered on a sectoral basis and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available
Where:
ECTOTAL i = Energy consumption in year i, in GJ;
i = Each year of the 2021-2023 period for which the emitter is required to cover GHG emissions;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(15) Covered establishment referred to in section 2.1 that is not considered on a sectoral basis and that does not possess a determined reference unit
The total quantity of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 15-1;
(2) in the case of an establishment for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 14-5.
Equation 15-1 Calculation of the number of GHG emission units allocated without charge for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis for the years 2021 to 2023, that does not possess a determined reference unit and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Ai = [(ECTOTAL,av× EF × aC,i) + (GHGFP,av × aFP,i) + (GHGO,av × aO,i)]× AFi,j
Where:
Ai = Total number of GHG emission units allocated without charge for year i;
i = Each year in the period 2021-2023 for which the emitter is required to cover its GHG emissions;
ECTOTAL,av = Average energy consumption for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 15-2, in GJ;
e = Year preceding the year in which the coverage requirement begins;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, calculated using equation 4-21.1;
aC,i = Cap adjustment factor for the allocation of combustion emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
GHGFP,av = Average fixed process emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aFP,i = Cap adjustment factor for the allocation of fixed process emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
GHGOav = Average other emissions at the establishment for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in metric tonnes CO2 equivalent;
aO,i = Cap adjustment factor for the allocation of other emissions for year i for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=i-(e+1);
AFi,j = Maximum of assistance factors for each type of activity j at the establishment for year i, as defined in Table 7 of this Appendix.
Equation 15-2 Calculation of average energy consumption for a covered establishment referred to in section 2.1 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which the GHG emissions data for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, are all available
Where:
ECTOTAL,av = Average energy consumption for years e-1 to e+1, or e to e+2 where e-1 is the year in which the establishment became operational, in GJ;
e = Year preceding the year in which the coverage requirement begins;
n = Total number of types of fuel used;
k = Type of fuel;
GHGnon bio k = Greenhouse gas emissions attributable to the use of fuel k excluding CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
GHGtotal k = Greenhouse gas emissions attributable to the use of fuel k including CO2 emissions attributable to the combustion of biomass or biofuels, in metric tonnes CO2 equivalent;
Fuelk = Mass or volume of fuel burned:
(a) in dry metric tonnes, when the quantity is expressed as a mass;
(b) in thousands of cubic metres at standard conditions, where the quantity is expressed as a volume of gas;
(c) in kilolitres, where the quantity is expressed as a volume of liquid;
HHVk = High heat value for measurement period i, expressed
(a) in GJ per dry metric ton, in the case of fuels whose quantity is expressed as a mass;
(b) in GJ per thousand cubic metres, in the case of fuels whose quantity is expressed as a volume of gas;
(c) in GJ per kilolitre, in the case of fuels whose quantity is expressed as a volume of liquid.
(16) Allocation cap adjustment factors
(16.1) Covered establishment as of 2018 for the period 2018-2020
Table 4: Allocation cap adjustment factors for a covered establishment as of 2018 for the period 2018-2020
Year iAFP,iAC,iaO,i
20181.00(0.99)n(0.99)n
20191.00(0.99)n(0.99)n
20201.00(0.99)n(0.99)n
(16.2) Establishment covered prior to 2021 for the period 2021-2023
Table 5: Allocation cap adjustment factors for an establishment covered prior to 2021 for the period 2021-2023
Year iaPF,iaC,iaO,i1
20210.9950.9850.970
20220.9900.9700.940
20230.9850.9550.910
1 For the activities “Ferrosilicon production” and “Silicon metal production”, the value of parameter “a O,I” is 1.000 for years 2021, 2022 and 2023.
(16.3) Covered establishment as of 2021 for the period 2021-2023
Table 6: Allocation cap adjustment factors for a covered establishment as of 2021 for the period 2021-2023
Year iAFP,iAC,iaO,i
20211-(0.005*n)1-(0.015*n)1-(0.03*n)
20221-(0.005*n)1-(0.015*n)1-(0.03*n)
20231-(0.005*n)1-(0.015*n)1-(0.03*n)
(17) Assistance factors
Table 7: Assistance factor and risk level for a reference unit by compliance period
SectorReference unitAssistance factor 2021-2030Risk level
AgrifoodHectolitre of beer0.90Level 1
Kilolitre of alcohol0.90Level 1
Metric tonne of sugar1.00Level 1
Metric tonne of processed oilseed1.00Level 1
Kilolitre of whole unpasteurized milk0.90Level 1
Metric tonne of milk powder with 5% or less moisture content0.90Level 1
Metric tonne of cleaned flour0.90Level 1
Metric tonne of unpasteurized raw milk solids and lactoserum received0.90Level 1
Metric tonne of pork products finished at the slaughterhouse after cutting and boning0.90Level 1
Metric tonne of processed poultry products0.90Level 1
AluminumMetric tonne of baked cathodes removed from furnace1.00Level 5
Metric tonne of liquid aluminum (leaving potroom)1.00Level 5
Metric tonne of baked anodes removed from furnace1.00Level 5
Metric tonne of aluminum hydroxide hydrate expressed as AI2O3 equivalent calculated at the precipitation stage1.00Level 3
Metric tonne of calcinated coke1.00Level 5
Metric tonne of remelted aluminum1.00Level 1
OtherMetric tonne of treated matter0.90Level 1
Cubic metre of gypsum panel1.00Level 3
Metric tonne of glass1.00Level 3
Square metre of silicon substrate associated with deep reactive ion etching0.90Level 1
Square metre of silicon substrate associated with an etching process other than deep reactive ion etching0.90Level 1
Square metre of silicon substrate associated with plasma enhanced chemical vapour deposition0.90Level 1
Metric tonne of carbon dioxide1.00Level 2
Number of aircraft delivered0.90Level 1
Number of aerospace parts delivered0.90Level 1
Number of aircraft with internal fittings manufactured on site0.90Level 1
Number of aircraft painted at the paint shop on site0.90Level 1
Number of aircraft tested prior to delivery0.90Level 1
Number of laminate sheet equivalents leaving press (typical sheet: minimum surface of 4 feet by 8 feet, 0.67 mm thickness)0.95Level 1
Square metre of asphalt shingles (membrane base)1.00Level 2
LimeMetric tonne of calcic lime and metric tonne of calcic lime kiln dust sold1.00Level 7
Metric tonne of dolomitic lime and metric tonne of dolomitic lime kiln dust sold1.00Level 7
ChemicalKilolitre of ethanol1.00Level 2
Metric tonne of tires0.90Level 1
Board foot of rigid insulation0.95Level 1
Metric tonne of titanium (TiO2) pigment equivalent (raw material)1.00Level 4
Metric tonne of LAB1.00Level 2
Metric tonne of catalyzer (including additives)1.00Level 1
Metric tonne of hydrogen1.00Level 2
Metric tonne of PTA1.00Level 2
Metric tonne of xylene and toluene1.00Level 7
Metric tonne of steam sold to a third person1.00Level 7
Metric tonne of sodium silicate1.00Level 2
Metric tonne of sulphur1.00Level 2
Metric tonne of polyethylene therephthalate (PET)0.95Level 1
CementMetric tonne of clinker produced and metric tonne of mineral additives (gypsum and limestone) added to the clinker produced1.00Level 7
ElectricityMegawatt-hour (MWh)0.60Level 1
Metric tonne of steam0.60Level 1
MetallurgyMetric tonne of steel (slabs, pellets or ingots)1.00Level 6
Metric tonne of wrought steel1.00Level 3
Metric tonne of rolled steel1.00Level 1
Metric tonne of copper anodes1.00Level 1
Metric tonne of recycled secondary materials1.00Level 1
Metric tonne of reduced iron pellets1.00Level 6
Metric tonne of copper cathodes1.00Level 1
Metric tonne of ferrosilicon (50% and 75% concentration)1.00Level 7
Metric tonne of lead1.00Level 1
Metric tonne of saleable iron powder and steel powder1.00Level 5
Metric tonne of TiO2 slag cast at the reduction furnaces1.00Level 5
Metric tonne of metallic silicon1.00Level 7
Metric tonne of iron load0.95Level 1
Metric tonne of cathodic zinc0.95Level 1
Metric tonne of steel forging stock0.95Level 1
Metric tonne of copper drawing stock0.95Level 1
Metric tonne of primary magnesium entering the foundry1.00Level 1
Metric tonne of magnesium produced1.00Level 1
Mining and pelletizationMetric tonne of flux pellets1.00Level 7
Metric tonne of standard pellets1.00Level 1
Metric tonne of low silica flux pellets1.00Level 7
Metric tonne of low silica pellets1.00Level 7
Metric tonne of blast furnace pellets1.00Level 7
Metric tonne of intermediate pellets1.00Level 7
Metric tonne of iron concentrate1.00Level 1
Metric tonne of nickel produced1.00Level 1
Metric tonne of nickel and copper produced1.00Level 1
Metric tonne of kimberlite processed0.90Level 1
Metric tonne of auriferous ore processed0.90Level 1
Pulp and paperMetric tonne of various air-dried saleable products1.00Level 1
Metric tonne of various saleable air-dried products of each of the establishments common to a steam network1.00Level 1
Metric tonne of saleable commercial pulp air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable newsprint air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable fine paper (from kraft pulp or deinked kraft pulp) air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable semi-fine uncoated paper (from mechanical pulp) air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable semi-fine coated paper air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable sanitary tissue air-dried to 10% moisture content1.00Level 2
Metric tonne of saleable uncoated cardboard air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable coated cardboard air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable corrugated board and linerboard air-dried to 10% moisture content1.00Level 1
Metric tonne of saleable cellulosic filament air-dried to 10% moisture content1.00Level 1
Thousand board feet (MFBM) (dry)0.90Level 1
RefiningKilolitre of total crude oil refinery load1.00Level 3
All sectorsReference unit not determined elsewhere in the table0.90Level 1
(18) Calculation methods for the total quantity of GHG emission units allocated for an establishment for the years 2024-2030
Equation 18-1 Calculation of the total quantity of GHG emission units allocated without charge for an establishment
Where:
Aestablishment i = Total quantity of GHG emission units allocated without charge for an establishment for year i for all types of activities j in Table B of Part I of this Appendix at that establishment;
i = Each year included in the period 2024 to 2030;
j = Each type of activity at the establishment;
m = Total number of types of activity at the establishment;
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i, calculated using equations 19-1, 20-1, 21-1, 22-1, 23-1, 24-1 and 24-7.
Equation 18-2 Calculation of the total quantity of GHG emission units allocated without charge paid to the emitter for an establishment
Where:
AE establishment i = Total quantity of GHG emission units allocated without charge paid to the emitter for an establishment for year i for all types of activities j in Table B of Part I of this Appendix at that establishment;
i = Each year included in the period 2024 to 2030;
j = Each type of activity at the establishment;
m = Total number of types of activity at the establishment;
AE i,j = Total number of GHG emission units allocated without charge paid to the emitter by type of activity j at an establishment for year i, calculated using equations 19-5, 20-4, 21-3, 22-3, 23-3, 24-4 and 24-8.
Equation 18-3 Calculation of the total quantity of GHG emission units allocated without charge to be auctioned for an establishment
AV establishment i = Aestablishment i – AE establishment i
Where:
AV establishment i = Total quantity of GHG emission units allocated without charge to be auctioned for an establishment for year i for all types of activities j in Table B of Part I of this Appendix at that establishment;
i = Each year included in the period 2024 to 2030;
j = Each type of activity at the establishment;
Aestablishment i = Total quantity of GHG emission units allocated without charge for an establishment for year i for all types of activities j in Table B of Part I of this Appendix at that establishment, calculated using equation 18-1;
AE establishment i = Total quantity of GHG emission units allocated without charge and paid to the emitter for an establishment for year i for all types of activities j in Table B of Part I of this Appendix at that establishment, calculated using equation 18-2.
(19) Calculation methods for the number of GHG emission units allocated without charge for an establishment covered prior to 2024 that is not considered on a sectoral basis for the years 2024-2030
(19.1) Calculation methods for the allocation
Equation 19-1 Calculation of the number of GHG emission units allocated without charge by type of activity for an establishment other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030
Ai,j = PR i,j × Ii,j × (AFi,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Ii,j = Target intensity for GHG emissions attributable to type of activity j at the establishment for year i, calculated using equation 19-2, in metric tonnes CO2 equivalent per reference unit;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
MEEi = Minimal expected effort for year i, calculated using equation 19-4 or, in the case of a covered establishment as of 2024 that is not a newly operational establishment, a value of 0 for year d or e+1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 19-2 Target intensity by type of activity for an establishment other than a newly operational establishment that is not considered on a sectoral basis for the years 2024 to 2030
Ii,j = 0.9 × Ii–1,j + 0.1 × IA,j
Where:
Ii,j = Target intensity for GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent per reference unit;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
0.9 = Proportion corresponding to 90% of the target intensity for the previous year;
Ii-1,j = Target intensity for GHG emissions attributable to type of activity j at the establishment for year i-1, in metric tonnes CO2 equivalent per reference unit, calculated using equations 19-8 to 19-18 for year 2023 or using equation 19-2 for subsequent years;
0.1 = Proportion corresponding to 10% of the average actual intensity at the establishment;
IA,j = Average actual intensity of GHG emissions attributable to type of activity j at the establishment calculated using equation 19-3 if the data for the period 2017-2019 are all available and if operations did not start during that period, or using equations 19-3.1 or 19-3.2 in other cases, in metric tonnes CO2 equivalent per reference unit.
Equation 19-3 Calculation of actual intensity by type of activity at an establishment other than a newly operational establishment that is not considered on a sectoral basis, for which the data for the period 2017-2019 are all available and that did not start operations during that period
Where:
IA,j = Average actual intensity of GHG emissions attributable to type of activity j at the establishment for the years 2017 to 2019, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Each year included in the period 2017 to 2019;
GHG i,j = GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent, using the new GWP values for the calculation;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 19-3.1 Calculation of actual intensity by type of activity for an establishment other than a newly operational establishment, that is not considered on a sectoral basis and for which the data for years d-2 to d or e-3 to e-1 are all available
Where:
IA dep,j = Initial average actual intensity of GHG emissions attributable to type of activity j at the establishment for the years 2017 to 2019, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2 to d or e-3 to e-1;
GHG I,j = GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent, calculated using the new GWP values;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 19-3.2 Calculation of actual intensity by type of activity for an establishment other than a newly operational establishment, that is not considered on a sectoral basis and for which the data for years d-2 to d or e-3 to e-1 are not all available
Where:
IA dep,j = Initial average actual intensity of GHG emissions attributable to type of activity j at the establishment for the years 2017 to 2019, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d to d+2 or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational;
GHG i,j = GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent, calculated using the new GWP values;
PR I,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 19-4 Calculation of the minimal expected effort for the years 2024 to 2030
MEEi = 0.01 × (i – n)
Where:
MEEi = Minimal expected effort for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.01 = Minimal expected effort;
n = Year 2023 or, in the case of a covered establishment as of 2024, year d or e+1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 19-5 Calculation of the number of GHG emission units allocated paid to the emitter by type of activity for an establishment other than a newly operational establishment, that is not considered on a sectoral basis for the years 2024 to 2030
AE i,j = PR i,j × min [Ii,j × (AF i,j – CDFi – EEEi,j – TMFi); Imax j × AF i,j]
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
min = Minimum value, representing the lesser of the 2 elements calculated;
Ii,j = Target intensity for GHG emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent per reference unit, calculated using equation 19-2;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 19-6 or, in the case of a covered establishment as of 2024 that is not a newly operational establishment, a value of 0 for year d or e+1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 19-7 or, in the case of a covered establishment as of 2024 that is not a newly operational establishment, a value of 0 for year d or e+1;
TMF i = Trajectory modulation factor for year i, as defined in Table 9 or, in the case of a covered establishment as of 2024 that is not a newly operational establishment, a value of 0 for year d or e+1;
Imax j = Intensity of the maximal allowance for type of activity j at the establishment calculated using equations 19-8 to 19-18.
Equation 19-6 Calculation of the cap decline factor for the years 2024 to 2030
CDFi = 0.0234 × (i – n)
Where:
CDFi,j = Cap decline factor for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.0234 = Value corresponding to the annual decrease in emission unit caps during the period 2024-2030;
n = Year 2023 or, in the case of a covered establishment as of 2024, year d or e+1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 19-7 Calculation of the extra effort expected by type of activity for the years 2024 to 2030
EEEi,j = EEEi – 1,j + Additional reductioni,j – FFPi,j
Where:
EEEi,j = Extra effort expected for type of activity j for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
EEEi-1,j = Extra effort expected for type of activity j for year i-1, or, for year 2024 in the case of an establishment covered prior to the year 2024 that is not a newly operational establishment, a value of 0;
Additional reductioni,j = Additional reduction for type of activity j for year i, as defined in Table 8 and according to the risk level defined;
FFPi,j = Proportion factor of fixed process emissions for type of activity j for year i, a value of 0.00272 if the fixed process emissions in the emissions report for year i for activity j represent 50% or more of emissions, or 0 in other cases.
(19.2) Calculation methods for the intensity of the maximal allowance
The intensity of the maximal allowance is calculated in accordance with the following methods:
(1) in the case of an establishment covered prior to the year 2021 that is not considered on a sectoral basis or an establishment that produces liquid aluminum using a side-worked prebaked anode technology, using equation 19-8;
(2) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equation 19-9;
(3) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d, using equation 19-10;
(4) in the case of an establishment referred to in section 2.1 covered prior to the year 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available, using equation 19-11;
(5) in the case of an establishment referred to in section 2.1 covered prior to the year 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available, using equation 19-12;
(6) in the case of an establishment that produces cathodic zinc using hydrogen as a fuel to supply its furnaces, using equation 19-13;
(7) in the case of an establishment that produces copper anodes, using equation 19-14;
(8) in the case of an establishment that processes gas from the recycling of secondary materials from a copper foundry, using equation 19-15;
(9) in the case of an establishment that produces steel (slabs, pellets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2), using equation 19-16;
(10) in the case of an establishment that produces copper cathodes, using equation 19-17;
(11) in the case of an establishment that processes secondary materials from a copper refinery, using equation 19-18.
Equation 19-8 Intensity of the maximal allowance by type of activity for an establishment covered prior to 2021 that is not considered on a sectoral basis or an establishment that produces liquid aluminum using a side-worked prebaked anode technology for the years 2024 to 2030
Imax j = IFP stan j × aFP, 2023 + Ic stan j × ac,2023 + IO stan j × aO,2023
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IFP stan j = Standard intensity for fixed process emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equations 8-2, 8-8 and 8-11, in metric tonnes CO2 equivalent per reference unit;
aFP, 2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023, as defined in Table 5 of this Appendix;
IC stan j = Standard intensity for combustion emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equations 8-4, 8-9 and 8-13 or, in the case of an establishment producing alumina from bauxite, a value of 0.4, in metric tonnes CO2 equivalent per reference unit;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity for other emissions attributable to type of activity j at the establishment for the years 2021 to 2023, calculated using equations 8-6, 8-10 and 8-17, in metric tonnes CO2 equivalent per reference unit;
aO, 2023 = Cap adjustment factor for the allocation of other emissions for year 2023, as defined in Table 5 of this Appendix.
Equation 19-9 Intensity of the maximal allowance by type of activity for a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d for the years 2024 to 2030
Imax j = IFP dep j × aFP,2023 + IC dep j × aC,2023 + IO dep j × aO,2023
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IFP dep = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-3, in metric tonnes CO2 equivalent per reference unit;
aC,2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d-2 to d, calculated using equation 10-4, in metric tonnes CO2 equivalent per reference unit;
aO,2023 = Cap adjustment factor for the allocation of other emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d.
Equation 19-10 Intensity of the maximal allowance by type of activity for a covered establishment as of 2021 that is not considered on a sectoral basis and that does not possess all the GHG emissions data for years d-2 to d for the years 2024 to 2030
Imax j = IFP dep j × aFP,2023 + IC dep j × aC,2023 + IO dep j × aO,2023
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years d to d+2 or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d;
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years d to d+2 or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-3, in metric tonnes CO2 equivalent per reference unit;
aC,2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d;
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years d to d+2 or d+1 to d+3 where d is the year in which the establishment became operational, calculated using equation 11-4, in metric tonnes CO2 equivalent per reference unit;
aO,2023 = Cap adjustment factor for the allocation of other emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-d.
Equation 19-11 Intensity of the maximal allowance by type of activity for an establishment referred to in section 2.1 covered prior to the year 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are all available for the years 2024 to 2030
Imax j = IFP dep j × aFP,2023 + IC dep j × aC,2023 + IO dep j × aO,2023
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 13-2, in metric tonnes CO2 equivalent per reference unit;
e = Year preceding the year in which the coverage requirement begins;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1);
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-3 to e-1, calculated using equation 13-3, in metric tonnes CO2 equivalent per reference unit;
aC,2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-3 to e+1, calculated using equation 13-4, in metric tonnes CO2 equivalent per reference unit;
aO,2023 = Cap adjustment factor for the allocation of other emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1).
Equation 19-12 Intensity of the maximal allowance by type of activity for an establishment referred to in section 2.1 covered prior to the year 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years e-3 to e-1 are not all available for the years 2024 to 2030
Imax j = IFP dep j × aFP,2023 + IC dep j × aC,2023 + IO dep j × aO,2023
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IFP dep j = Average intensity of fixed process emissions attributable to type of activity j at the establishment for years e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 11-2, in metric tonnes CO2 equivalent per reference unit;
e = Year preceding the year in which the coverage requirement begins;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1);
IC dep j = Average intensity of combustion emissions attributable to type of activity j at the establishment for years e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 11-3, in metric tonnes CO2 equivalent per reference unit;
aC,2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1);
IO dep j = Average intensity of other emissions attributable to type of activity j at the establishment for years e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, calculated using equation 11-4, in metric tonnes CO2 equivalent per reference unit;
aO,2023 = Cap adjustment factor for the allocation of other emissions for year 2023 for establishments covered between 2021 and 2023, as defined in Table 6 of this Appendix, where n=2023-(e+1).
Equation 19-13 Intensity of the maximal allowance of an establishment that produces cathodic zinc using hydrogen as a fuel to supply its furnaces
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IC stan j = Standard intensity for combustion emissions attributable to cathodic zinc production at the establishment for year 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity for other emissions attributable to cathodic zinc production at the establishment for year 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO, 2023 = Cap adjustment factor for the allocation of other emissions for year 2023, as defined in Table 5 of this Appendix;
FH 2023 = Adjustment factor for the partial or total loss of hydrogen supply for year 2023, calculated using equation 6-10.2;
max = Maximum value, representing the greater of GHGFP 2023,j /× PR 2023,j and IFP stan j;
GHGFP 2023, j = Fixed process emissions attributable to type of activity j at the establishment for year 2023, in metric tonnes CO2 equivalent;
PR 2023, j = Total quantity of cathodic zinc produced by the establishment for year 2023, in metric tonnes of cathodic zinc;
IFP stan, j = Standard intensity for fixed process emissions attributable to cathodic zinc production at the establishment for year 2023, calculated using equation 8-26, in metric tonnes CO2 equivalent per reference unit;
aFP, 2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023, as defined in Table 5 of this Appendix.
Equation 19-14 Intensity of the maximal allowance for producing copper anodes from a copper foundry
Where:
Imax = Intensity of the maximal allowance for the production of copper anodes at the establishment;
IC stan cu = Standard intensity for combustion emissions attributable to copper anode production at the establishment for year 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
max = Maximum value, representing the greater of GHGFP cu,2023 / PR cu,2023 and IFP stan cu;
GHGFP cu,2023 = Fixed process emissions attributable to copper anode production at the establishment for year 2023, in metric tonnes CO2 equivalent;
PR cu, 2023j = Total quantity of copper anodes produced by the establishment for year 2023, in metric tonnes of copper;
IFP stan cu = Standard intensity for fixed process emissions attributable to copper anode production at the establishment for year 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023, as defined in Table 5 of this Appendix.
Equation 19-15 Intensity of the maximal allowance attributable to the processing of gas from the recycling of secondary materials from a copper foundry
 Imax = IC stan RSM × aC,2023 +Arecycl,2023 
 PR RSM,2023 
Where:
Imax = Intensity of the maximal allowance attributable to the processing of gas from the recycling of secondary materials at the establishment;
IC stan RSM = Standard intensity for combustion emissions attributable to the processing of gas from the recycling of secondary materials at the establishment for year 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per metric tonne of recycled secondary materials;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
Arecycl,2023 = GHG emissions attributable to the carbon content of recycled secondary materials used in the process for year 2023, in metric tonnes CO2 equivalent;
PR RSM,2023 = Total quantity of secondary materials recycled at the establishment for year 2023, in metric tonnes of recycled secondary materials.
For the purposes of equation 19-15, all materials used in the process other than fuel, ore, reducing agents, materials used for slag purification, carbonated reactants and carbon electrodes are considered to be recycled secondary materials used in a process at a copper foundry.
Equation 19-16 Intensity of the maximal allowance for the production of steel (slabs, pellets or ingots), metallic silicon, ferrosilicon, reduced iron pellets or titanium dioxide (TiO2)
Where:
Imax j = Intensity of the maximal allowance for type of activity j;
j = Type of activity;
IC stan j = Standard intensity for combustion emissions attributable to type of activity j at the establishment for year 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC,2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
IO stan j = Standard intensity for other emissions attributable to type of activity j at the establishment for year 2023, calculated using equation 8-6, in metric tonnes CO2 equivalent per reference unit;
aO,2023 = Cap adjustment factor for the allocation of other emissions for year 2023, as defined in Table 5 of this Appendix;
max = Maximum value, representing the greater of GHGFP2023,j / PR 2023,j and IFP stan j;
GHGFP 2023,j = Fixed process emissions attributable to type of activity j at the establishment for year 2023, in metric tonnes CO2 equivalent;
PR 2023,j = Total quantity of reference units produced or used by the establishment for type of activity j during year 2023;
IFP stan j = Standard intensity for fixed process emissions attributable to type of activity j at the establishment for year 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per reference unit;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023, as defined in Table 5 of this Appendix.
Equation 19-17 Intensity of the maximal allowance for the production of copper cathodes at a copper refinery
Imax = IC stan cath × ac,2023 + IFP stan cath × aFP,2023
Where:
Imax = Intensity of the maximal allowance for the production of copper cathodes at the establishment;
IC stan cath = Standard intensity for combustion emissions attributable to copper cathode production at the establishment for year 2023, calculated using equation 8-4, in metric tonnes CO2 equivalent per reference unit;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix;
IFP stan cath = Standard intensity for fixed process emissions attributable to copper cathode production at the establishment for year 2023, calculated using equation 8-2, in metric tonnes CO2 equivalent per metric tonne of copper anodes;
aFP,2023 = Cap adjustment factor for the allocation of fixed process emissions for year 2023, as defined in Table 5 of this Appendix.
Equation 19-18 Intensity of the maximal allowance attributable to the treatment of recycled secondary materials at a copper refinery
 Imax = GHGC,2023 RSM× aC,2023 
PR RSM,2023
Where:
Imax = Intensity of the maximal allowance attributable to the treatment of the recycled secondary materials at the establishment;
GHGC,2023 RSM = GHG combustion emissions attributable to the treatment of recycled secondary materials for year 2023, in metric tonnes CO2 equivalent;
PR RSM, 2023 = Total quantity of secondary materials recycled at the establishment for year 2023, in metric tonnes of recycled secondary materials;
aC, 2023 = Cap adjustment factor for the allocation of combustion emissions for year 2023, as defined in Table 5 of this Appendix.
(20) Calculation methods for the total quantity of GHG emission units allocated without charge for an establishment that is considered on a sectoral basis for the years 2024-2030
Equation 20-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is considered on a sectoral basis for the years 2024 to 2030
Ai,j = PR i,j × IS i,j × (AFi,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
IS i,j = Target intensity for GHG emissions attributable to type of activity j in the sector for year i, calculated using equation 20-2, in metric tonnes CO2 equivalent per reference unit;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
MEEi = Minimal expected effort for year i, calculated using equation 19-4 or, for year d or e+1, a value of 0.
Equation 20-2 Target intensity by type of activity at an establishment that is considered on a sectoral basis for the years 2024 to 2030
IS i,j = 0.9 × IS i – 1,j + 0.1 × IAS j
Where:
IS i,j = Target intensity for GHG emissions attributable to type of activity j in the sector for year i, in metric tonnes CO2 equivalent per reference unit;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
0.9 = Proportion corresponding to 90% of the target intensity for the previous year;
Isi-1,j = Target intensity for GHG emissions attributable to type of activity j at the establishment for year i-1, in metric tonnes CO2 equivalent per reference unit determined using Tables 1, 2 and 3 in subdivisions 9.1, 9.2 and 9.3 of this Part for year 2023;
0.1 = Proportion corresponding to 10% of the average actual intensity in the sector;
IAS j = Average actual intensity of GHG emissions attributable to type of activity j in the sector for the period 2017-2019, in metric tonnes CO2 equivalent per reference unit, calculated using equation 20-3.
Equation 20-3 Calculation of the average intensity of GHG emissions attributable to type of activity j in the sector
Where:
IAS j = Average actual intensity of GHG emissions attributable to type of activity j in the sector for the period 2017-2019, in metric tonnes CO2 equivalent per reference unit;
i = Each year in the period 2017-2019;
j = Type of activity;
k = Establishment in the sector required to cover GHG emissions during year 2021;
l = Number of covered establishments during year i in the sector;
GHGi,j,k = GHG emissions attributable to type of activity j at establishment k for year i, in metric tonnes CO2 equivalent, calculated using the new GWP values and excluding emissions for the year in which the establishment became operational;
PRi,j,k = Total quantity of reference units produced or used by establishment k for type of activity j during year i, excluding reference units produced or used by the establishment during the year in which the establishment became operational;
Equation 20-4 Calculation of the number of GHG emission units allocated and paid to the emitter by type of activity at an establishment that is considered on a sectoral basis for the years 2024 to 2030
AE i,j = PR i,j × min [IS i,j × (AFi,j – CDFi – EEEi,j – TMFi); IS 2023,j × AFi,j]
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
min = Minimum value, representing the lesser of the 2 elements calculated;
IS i,j = Target intensity for GHG emissions attributable to type of activity j in the sector for year i, in metric tonnes CO2 equivalent per reference unit, calculated using equation 20-2;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 19-6 or, for year d or e+1, a value of 0;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 19-7 or, for year d or e+1, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for year d or e+1, a value of 0;
IS 2023, j = Intensity of GHG emissions attributable to type of activity j in the sector for year 2023, determined using Tables 1, 2 and 3 of this Appendix, in metric tonnes CO2 equivalent per reference unit.
(21) Calculation methods for the total number of GHG emission units allocated without charge for a newly operational establishment that is not considered on a sectoral basis, for the years 2024 to 2030, and for which the GHG emissions data for years d to d+2 or e+1 to e+3 or d+1 to d+3 or e+2 to e+4, where d or e+1 is the year in which the establishment became operational, are all available
Equation 21-1 Calculation of the total number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2024 to 2030
Ai,j = PR i,j × Idep,j × (AF i,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Initial average intensity for GHG emissions attributable to type of activity j at the establishment, calculated using equation 21-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix or, for years d to d+4 or e+1 to e+5, a value of 1;
MEEi = Minimal expected effort for year i, calculated using equation 19-4 or, for years d to d+4 or e+1 to e+5, a value of 0.
Equation 21-2 Initial average intensity by type of activity at an establishment that is not considered on a sectoral basis for year d+2 or e+3 or year d+3 or e+4, where year d or e+1 is the year in which the establishment became operational
Where:
Idep,j = Initial average intensity of GHG emissions attributable to type of activity j at the establishment, in metric tonnes CO2 equivalent per reference unit;
i = Years d to d+2, or e+1 to e+3, or years d+1 to d+3, or e+2 to e+4 where year d or e+1 is the year in which the establishment became operational;
j = Type of activity;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
GHGi,j = Total emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PRi,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 21-3 Calculation of the number of allocated GHG emission units paid to the emitter by type of activity at an establishment that is not considered on a sectoral basis for the years 2024 to 2030
AE i,j = PR i,j × Idep,j × (AF i,j – CDFi – EEEi,j – TMFi)
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Initial average intensity for GHG emissions attributable to type of activity j at the establishment, calculated using equation 21-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 19-6 or, for years d to d+1 or e+1 to e+2, a value of 0;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 19-7 or, for years d to d+1 or e+1 to e+2, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for years d to d+1 or e+1 to e+2, a value of 0.
(22) Calculation methods for the total number of GHG emission units allocated without charge for a newly operational establishment that is not considered on a sectoral basis for the years 2024 to 2030 and for which the GHG emissions data for years d to d+2 or e+1 to e+3 or years d+1 to d+3 or e+2 to e+4, where d or e is the year in which the establishment became operational, are not all available
Equation 22-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment that is not considered on a sectoral basis for the years 2024 to 2030
Ai,j = (ECTOTAL i,j × EF + GHGFP i,j + GHGO i,j) × (AF i,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
ECTOTAL i,j = Energy consumption for type of activity j for year i, in GJ, calculated using equation 11-6 or equation 14-6;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, or in the case of an establishment not connected to the electrical grid, the emission factor for diesel, in metric tonnes CO2 equivalent/GJ, calculated using equation 22-1.1;
GHGFP i,j = Fixed process emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
GHGO i, j = Other emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix or, for years d to d+4 or e+1 to e+5, a value of 1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
MEEi = Minimal expected effort for year i, calculated using equation 22-2 or, for years d to d+4 or e+1 to e+5, a value of 0.
Equation 22-1.1 Calculation of the emission factor for natural gas or diesel
EF = ((EFCO2 × 1000) + (EFCH4 × GWPCH4) + (EFN2O × GWPN2O)) × 0.000001
Where:
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, or in the case of an establishment not connected to the electrical grid, the emission factor for diesel, in metric tonnes CO2 equivalent/GJ;
EFCO2 = CO2 emission factor for natural gas or diesel taken respectively from Table 1-4 or Table 1-3 in QC.1.7 of protocol QC.1 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in kilograms of CO2 per GJ;
1000 = Conversion factor, kilograms to grams;
EFCH4 = CH4 emission factor for natural gas, for industrial uses, or for diesel, taken respectively from Table 1-7 or Table 1-3 in QC.1.7 of protocol QC.1 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in grams of CH4 per GJ;
GWPCH4 = Global warming potential of CH4, taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere;
EFN2O = N2O emission factor for natural gas, for industrial uses, or for diesel, taken respectively from Table 1-7 or Table 1-3 in QC.1.7 of protocol QC.1 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in grams of N2O per GJ;
GWPN2O = Global warming potential for N2O, taken from Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere;
0.000001 = Conversion factor, grams to metric tonnes.
Equation 22-2 Calculation of the minimal expected effort for the years 2024 to 2030
MEEi = 0.01 × (i – n)
Where:
MEEi = Minimal expected effort for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.01 = Minimal expected effort;
n = Year d+1 or e+2;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 22-3 Calculation of the number of allocated GHG emission units paid to the emitter by type of activity at an establishment that is not considered on a sectoral basis for the years 2024 to 2030
AE i,j = (ECTOTAL i,j × EF + GHGFP i,j + GHGO i,j) × (AF i,j – CDFi – EEEi,j – TMFi)
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
ECTOTAL i,j = Energy consumption for type of activity j for year i, in GJ, calculated using equation 11-6 or equation 14-6;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, or in the case of an establishment not connected to the electrical grid, the emission factor for diesel, in metric tonnes CO2 equivalent/GJ, calculated using equation 22-1.1;
GHGFP i,j = Fixed process emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
GHGO i, j = Other emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 22-4 or, for years d to d+1 or e+1 to e+2, a value of 0;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 22-5 or, for years d to d+1 or e+1 to e+2, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for years d to d+1 or e+1 to e+2, a value of 0.
Equation 22-4 Calculation of the cap decline factor for the years 2024 to 2030
CDFi = 0.0234 × (i – n)
Where:
CDFi,j = Cap decline factor for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.0234 = Value corresponding to the annual decrease in emission unit caps during the period 2024-2030;
n = Year d or e+1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 22-5 Calculation of the extra effort expected by type of activity for the years 2024 to 2030
EEEi,j = EEEi – 1,j + Additional reductioni,j – FFPi,j
Where:
EEEi,j = Extra effort expected for type of activity j for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
EEEi-1,j = Extra effort expected for type of activity j for year i-1;
Additional reductioni,j = Additional reduction for type of activity j for year i, as defined in Table 8 and according to the risk level defined;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
FFPi,j = Proportion factor of fixed process emissions for type of activity j for year i, a value of 0.00272 if the fixed process emissions in the verified emissions report for year i for activity j represent 50% or more of emissions, or a value of 0 in other cases.
(23) Establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are all available
Equation 23-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis for the years 2024 to 2030
Ai,j = PR i,j × Idep,j × (AF i,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Initial average intensity for GHG emissions attributable to type of activity j at the establishment, calculated using equation 23-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
MEEi = Minimal expected effort for year i, calculated using equation 19-4 or, for year d or e+1, a value of 0.
Equation 23-2 Initial intensity by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are all available
Where:
Idep j = Initial intensity of GHG emissions attributable to type of activity j at the establishment, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d-2 to d, or e-3 to e-1;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
GHGi,j = Total emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 23-3 Calculation of the number of allocated GHG emission units paid to the emitter by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis for the years 2024 to 2030
AE i,j = PR i,j × Idep,i × (AFi,j – CDFi – EEEi,j – TMFi)
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Initial average intensity for GHG emissions attributable to type of activity j calculated using equation 23-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 19-6 or, for year d or e+1, a value of 0;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 19-7 or, for year d or e+1, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for year d or e+1, a value of 0.
(24) Establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available
The total number of GHG emission units allocated without charge to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2, where e-1 is the year in which the establishment became operational, are all available, using equation 24-1;
(2) in the case of an establishment for which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 24-7.
The total number of GHG emission units allocated without charge and paid to an emitter is calculated in accordance with the following methods:
(1) in the case of an establishment for which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, are all available, using equation 24-4;
(2) in the case of an establishment for which GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational, are not all available, using equation 24-8.
Equation 24-1 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024, that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available
Ai,j = PR i,j × Idep,j × (AFi,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Initial average intensity for GHG emissions attributable to type of activity j at the establishment, calculated using equation 24-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
MEEi = Minimal expected effort for year i, calculated using equation 24-3 or, in the case of a covered establishment as of 2024 that is not a newly operational establishment, a value of 0 for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational.
Equation 24-2 Initial average intensity by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available
Where:
Idep, j = Initial average intensity of GHG emissions attributable to type of activity j at the establishment, in metric tonnes CO2 equivalent per reference unit;
j = Type of activity;
i = Years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
GHGi,j = Total emissions attributable to type of activity j at the establishment for year i, in metric tonnes CO2 equivalent;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i.
Equation 24-3 Calculation of the minimal expected effort for the years 2024 to 2030
MEEi = 0.01 × (i – n)
Where:
MEEi = Minimal expected effort for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.01 = Minimal expected effort;
n = Year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 24-4 Calculation of the number of allocated GHG emission units paid to the emitter by type of activity at an establishment referred to in section 2 or section 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d-2 to d or e-3 to e-1 are not all available
AE i,j = PR i,j × Idep,j × (AF i,j – CDFi – EEEi,j – TMFi)
Where:
AE i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
PR i,j = Total quantity of reference units produced or used by the establishment for type of activity j during year i;
Idep,j = Target intensity for GHG emissions attributable to type of activity j at the establishment, calculated using equation 24-2, in metric tonnes CO2 equivalent per reference unit;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 24-5 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 24-6 or, for year d or e-1, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0.
Equation 24-5 Calculation of the cap decline factor for the years 2024 to 2030
CDFi = 0.0234 × (i – n)
Where:
CDFi = Cap decline factor for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
0.0234 = Value corresponding to the annual decrease in emission unit caps during the period 2024-2030;
n= Year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins.
Equation 24-6 Calculation of the extra effort expected by type of activity for the years 2024 to 2030
EEEi,j = EEEi – 1,j + Additional reductioni,j – FFPi,j
Where:
EEEi,j = Extra effort expected for type of activity j for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
EEEi – 1,j = Extra effort expected for type of activity j for year i-1;
Additional reductioni,j = Additional reduction for type of activity j for year i, as defined in Table 8 and according to the risk level defined;
FFPi j = Proportion factor of fixed process emissions for type of activity j for year i, a value of 0.00272 if the fixed process emissions in the emissions report for year i for activity j represent 50% or more of emissions, or a value of 0 in other cases.
Equation 24-7 Calculation of the number of GHG emission units allocated without charge by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational are not all available
Ai,j = (ECTOTAL i,j × EF + GHGFP i,j + GHGO i,j) × (AF i,j – MEEi)
Where:
Ai,j = Total number of GHG emission units allocated without charge by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
ECTOTAL i,j = Energy consumption for type of activity j for year i, in GJ, calculated using equation 11-6 or equation 14-6;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, or in the case of an establishment not connected to the electrical grid, the emission factor for diesel, in metric tonnes CO2 equivalent/GJ, calculated using equation 22-1.1;
GHGFP i,j = Fixed process emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
GHGO i, j = Other emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
MEEi = Minimal expected effort for year i, calculated using equation 24-3 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0.
Equation 24-8 Calculation of the number of allocated GHG emission units paid to the emitter by type of activity at an establishment referred to in section 2 or 2.1, covered as of 2024 that is not considered on a sectoral basis and for which the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, or e-1 to e+1 or e to e+2 where e-1 is the year in which the establishment became operational are not all available
AE i,j = (ECTOTAL i,j × EF + GHGFP i,j + GHGO i,j) × (AF i,j – CDFi – EEEi,j – TMFi)
Where:
A E i,j = Total number of GHG emission units paid directly to the emitter by type of activity j at an establishment for year i;
i = Each year of the period 2024-2030 for which the emitter is required to cover GHG emissions;
j = Type of activity;
ECTOTAL i,j = Energy consumption for type of activity j for year i, in GJ, calculated using equation 11-6 or equation 14-6;
EF = Emission factor for natural gas, in metric tonnes CO2 equivalent/GJ, or in the case of an establishment not connected to the electrical grid, the emission factor for diesel, in metric tonnes CO2 equivalent/GJ, calculated using equation 22-1.1;
GHGFP i,j = Fixed process emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
GHGO i, j = Other emissions at the establishment for type of activity j for year i, in metric tonnes CO2 equivalent;
AF i,j = Assistance factor for type of activity j for year i, as defined in Table 7 of this Appendix;
CDFi = Cap decline factor for year i, calculated using equation 24-5 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0;
d = First year for which the GHG emissions of the establishment are equal to or exceed the emissions threshold;
e = Year preceding the year in which the coverage requirement begins;
EEEi,j = Extra effort expected for type of activity j for year i, calculated using equation 24-6 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0;
TMFi = Trajectory modulation factor for year i, as defined in Table 9 or, for year d or d+1 where d is the year in which the establishment became operational, or e-1 or e where e-1 is the year in which the establishment became operational, a value of 0.
(25) Calculation methods for GHG emissions attributable to the production of electricity by cogeneration in the pulp and paper sector beginning in the year 2023
Equation 25-1 Calculation of GHG emissions attributable to the production of electricity by cogeneration
GHGPEC i = GHGQC.16 i – GHGPPP i
Where:
GHGPEC i = GHG emissions attributable to the production of electricity by cogeneration, in metric tonnes CO2 equivalent;
i = Each year, beginning in 2023, for which the emitter is required to cover GHG emissions;
GHGQC.16 i = GHG emissions reported in accordance with protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15), in metric tonnes CO2 equivalent;
GHGPPP i = GHG emissions attributable to the pulp and paper manufacturing process, in metric tonnes CO2 equivalent, calculated using equation 25-2.
If the total quantity of reference units attributable to the pulp and paper manufacturing process at the establishment is zero, all the GHG emissions reported in accordance with protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere must be considered, for the purposes of equation 25-1, to be attributable to the production of electricity by cogeneration.
Equation 25-2 Calculation of GHG emissions attributable to the pulp and paper manufacturing process
Where:
GHGPPP i = GHG emissions attributable to the pulp and paper manufacturing process, in metric tonnes CO2 equivalent;
i = Each year, beginning in 2023, for which the emitter is required to cover GHG emissions;
QPPP i = Energy attributable to the pulp and paper manufacturing process, in GJ, calculated using equation 25-5;
QPEC i = Energy attributable to the production of electricity by cogeneration, in GJ, calculated using equation 25-3;
GHGQC.16 i = GHG emissions reported in accordance with protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in metric tonnes CO2 equivalent.
Equation 25-3 Calculation of the energy attributable to the production of electricity by cogeneration
QPEC i = Pelectricity i × Reff × 3.6
Where:
QPEC i = Energy attributable to the production of electricity by cogeneration, in GJ;
i = Each year, beginning in 2023, for which the emitter is required to cover GHG emissions;
Pelectricity i = Annual electricity production reported in accordance with subparagraph 6 of the first paragraph of QC 16.2 of protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in MWh;
Reff = Ratio between the efficiency of heat production and the efficiency of electricity production, calculated using equation 25-4;
3.6 = Conversion factor, MWh to GJ.
Equation 25-4 Calculation of the ratio between the efficiency of heat production and the efficiency of electricity production
 Reff = eC 
eP
Where:
Reff = Ratio between the efficiency of heat production and the efficiency of electricity production;
eC = Efficiency of heat production of 0.8;
eP = Efficiency of electricity production of 0.35.
Equation 25-5 Calculation of the energy attributable to the pulp and paper manufacturing process
QPPP i = QQC.16 (produced)i – QPEC i
Where:
QPPP i = Energy attributable to the pulp and paper manufacturing process, in GJ;
i = Each year, beginning in 2023, for which the emitter is required to cover GHG emissions;
QQC.16 (produced) i = Energy produced on the basis of energy consumed as reported in accordance with QC 16.2 of protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in GJ, calculated using equation 25-6;
QPEC i = Energy attributable to the production of electricity by cogeneration, in GJ, calculated using equation 25-3.
Equation 25-6 Calculation of energy produced on the basis of energy consumed as reported in QC 16.2 of protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere
QQC.16 (produced)i = QQC.16 (consumed)i × eC
Where:
QQC.16 (produced) i = Energy produced on the basis of energy consumed as reported in accordance with QC 16.2 of protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in GJ;
i = Each year, beginning in 2023, for which the emitter is required to cover GHG emissions;
QQC.16 (consumed) i = Total energy consumed as reported in accordance with QC 16.2 of protocol QC.16 in Schedule A.2 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere, in GJ;
eC = Efficiency of heat production of 0.8.
(26) Additional reduction
Table 8: Additional reduction
Risk levelAdditional reduction
Level 7-0.00272
Level 60
Level 50.00272
Level 40.00544
Level 30.00816
Level 20.01088
Level 10.0136
(27) Trajectory modulation
Table 9: Trajectory modulation.
YearTrajectory modulation
2024-0.005
2025-0.01
2026-0.0125
2027-0.0125
2028-0.01
2029-0.005
20300
Part III
Greenhouse gas reduction projects and greenhouse gas research and development projects
(1) Object
This Part sets out the terms and conditions applicable to eligible projects, specifically the greenhouse gas reduction projects and greenhouse gas research and development projects referred to in subdivisions 3.1, 4.1 and 5.1 of this Part, for which an emitter may use the sums determined and reserved in the emitter’s name pursuant to section 54.1. It also sets out the terms and conditions governing the payment of such sums, which must be recorded in an agreement entered into by the emitter and the Minister in accordance with section 46.8.1 of the Environment Quality Act (chapter Q-2).
This Part also sets out the eligible expenses for which the sums may be used and the terms and condition for reporting on eligible projects.
(2) Definitions
In this Part, unless otherwise indicated by context,
administration costs means costs for the administrative support of project implementation, including office and accounting costs, payroll management costs, office rental costs, stationery purchase costs, postal costs and telephone costs; (frais d’administration)
bioenergy from residual biomass means one of the following fuels produced by pyrolysis from residual biomass:
(1) pyrolitic oil;
(2) biochar;
(3) biogas or renewable natural gas, if produced in conjunction with a fuel in paragraph 1 or 2; (bioénergies à partir de biomasse résiduelle)
classic equipment means equipment whose efficiency is equivalent to that prescribed by industry or generally recognized standards. The GHG emission levels are equivalent to current best practices and to the efficiency of the types of new equipment available in the marketplace; (équipement classique)
external consultant means a person or group of persons, not employed by the emitter and not forming part of the same group within the meaning of section 9; (consultant externe)
first-generation renewable natural gas means natural gas from an engineered landfill or agricultural and urban biomethanization site; (gaz naturel renouvelable de première génération)
generally accepted accounting principles means all the general principles and conventions of general application as well as the rules and procedures that determine recognized accounting practices at a given point in time. The principles define the rules for accounting and information presentation that apply to financial statements, as well as explanations and indications about most of the operations and events that occur in an entity. Financial statements must convey relevant, reliable, comparable, understandable and clearly presented information in a way that facilitates its use; (principes comptables généralement reconnus)
GHG emissions verification means an evaluation of the impact of a project implementation on the GHG emissions reduction reported by an emitter, performed after the project is implemented and based on ISO Standard 14064-3; (vérification des émissions de GES)
green hydrogen means hydrogen produced by the electrolysis of water using renewable electricity; (hydrogène vert)
renewable electricity means electricity produced from a wind, solar, geothermal, wave, tidal or hydro-electric source; (électricité renouvelable)
residual biomass means organic material of plant or animal origin mainly sourced from the forest, agricultural, industrial or urban sector in Québec that belongs to one of the following categories:
(1) forest-sourced biomass from harvesting or primary or secondary processing activities as well as sludge, pulp and paper liquor, granules and compressed wood logs. Forest-sourced biomass includes uncontaminated additive-free wood from the construction sector, when the wood is not covered by a measure targeting reduction at source, reuse, recycling or reclamation, and excludes standing timber;
(2) agriculture-sourced biomass resulting from livestock-raising activities and the harvesting of various crops, comprising residue from the processing of plants and energy crops harvested on land that is not suitable for the production of food crops for human or animal use;
(3) residual biomass from industrial or urban sources that can be reclaimed using the hierarchy of reclamation models defined in the residual materials management policy; (biomasse résiduelle)
site means a physical or geographic location where the emitter’s activities take place. A site includes all buildings and accessory immovable equipment; (site)
technology testing means the use of an existing product or process in an actual application for a period sufficiently long and representative of various operating conditions to objectively establish the performance of the technology; (mise à l’essai d’une technologie)
third person means a person or group of persons that are not participants in, are not employed by and are not part of the same controlling group as those who helped prepare the elements to be validated or verified; (tierce partie)
third person qualified to quantify GHG emissions means a third person that can show that it has qualifications for quantifying GHG emissions, that is impartial within the meaning of ISO Standard 14064:2019 and that, at minimum,
(1) has completed training on one of the 3 parts of ISO Standard 14064 on GHG emissions, has performed quantifications as part of its duties and can provide evidence of that fact; or
(2) holds accreditation under ISO Standard 14065, a requirement for organizations that provide GHG emission validations and verifications for accreditation or other forms of recognition, has performed quantifications as part of its duties and can provide evidence of that fact; (tierce partie compétente en quantification)
validation of GHG emissions reduction means an evaluation of the probability that the implementation of a project will generate the GHG emissions reduction reported by an emitter, based on ISO Standard 14064-3. (validation des réductions d’émissions de GES)
(3) Production or updating of a study of the technical and economic potential for GHG emissions reduction
(3.1) Description
An eligible project within the meaning of this Part is a study of the technical and economic potential for GHG emissions reduction that
(1) involves the production or updating of a study of the technical and economic potential for GHG emissions reduction at each establishment operated by an emitter referred to in the first paragraph of section 2, subparagraph 3 of the second paragraph of section 2 or section 2.1;
(2) identifies and estimates all potential emissions reduction projects in each such establishment using current technologies, along with their implementation costs;
(3) evaluates the potential for GHG emissions reduction in each of the following categories:
(a) improved energy efficiency;
(b) energy conversion;
(c) a reduction in fixed process emissions and other emissions within the meaning of Division B of Part II of Appendix C;
(4) is drafted by the emitter or an external consultant; and
(5) is revised by an external consultant who is a member of the Ordre des ingénieurs du Québec who must certify, with a reasonable level of assurance, that
(a) the elements presented in the study are credible;
(b) a process has been undertaken to identify projects for GHG emissions reduction that are technically viable;
(c) all categories of GHG emissions reduction projects have been evaluated; and
(d) the GHG emissions reductions were estimated using the principles of ISO Standard 14064-2.
The GHG emissions reduction projects referred to in subparagraph 2 of the first paragraph must target a reduction in GHG emissions compared to the baseline scenarios in a manner consistent with the principles of ISO Standard 14064-2.
If the emitter uses the sums to finance technological innovation projects referred to in Division 5 of this Part, the study must also evaluate the possibilities for GHG emissions reductions using emerging technologies within a 10-year timeframe.
(3.2) Submission of a project
Before the Minister pays the sums in accordance with the terms and conditions of Division 11 of this Part to allow the emitter to complete a study of the technical and economic potential for GHG emissions reduction, the emitter must send the Minister a project submission form signed and dated by a duly authorized person. All applications must be submitted before 31 December 2030.
After receiving the project submission form, the Minister confirms in writing that the emitter may begin the production or updating of its study of the technical and economic potential for GHG emissions reduction and that expenses may be incurred.
(3.3) Reporting requirements
The payment of the sums in accordance with the terms and conditions of Division 11 is conditional on the receipt of the documents and information referred to in subdivisions 3.3.1 and 3.3.2, depending on whether the project is being implemented or has been completed.
(3.3.1) Annual report
If the production or updating of the study of the technical and economic potential for GHG emissions reduction has not been completed by the end of a year, the emitter must submit to the Minister between 31 January and 1 March each year, for expenses paid up to the preceding 31 December, an annual report including the following documents and information:
(1) a financial report compliant with Division 6 of this Part;
(2) the budget forecasts for the project for the period from 1 January to 31 March of the current year;
(3) the annual budget forecasts for the subsequent years;
(4) an updated timeline for the project;
(5) a progress report for the study, including in particular a description of the project, the progress made and the estimated completion date of the study.
The Minister may ask the emitter for an update of the financial plan for the project in November and June each year. The update must be sent to the Minister not later than 1 month after the Minister asks the emitter for the update.
(3.3.2) Final report
Once the production or updating of the study of the technical and economic potential for GHG emissions reduction has been completed, the emitter must file with the Minister, within 60 days of the end of the project and not later than 5 years after the date of filing of the project submission form referred to in subdivision 3.2, a final report including the following documents and information:
(1) a financial report compliant with Division 6 of this Part;
(2) a completed study of the technical and economic potential including, for each establishment,
(a) a description of the enterprise;
(b) a diagram of the general process and main equipment;
(c) the inputs and outputs;
(d) the identification and quantification of sources of GHG emissions and types of emissions within the meaning of Division B of Part II, in the form of representative averages;
(e) the identification, quantification and costs of fuel consumption points, by type, quantity used and emission factor, in the form of representative averages;
(f) optionally, electricity consumption and associated costs;
(g) the potential GHG emissions reduction projects and, where applicable, the technological innovation projects identified in the study; and
(h) the certification of the external consultant;
(3) for each potential project identified in the study of the technical and economic potential,
(a) the baseline scenario used;
(b) a description of the planned project;
(c) an annual estimate of the GHG emissions reductions planned compared to the baseline scenarios;
(d) energy consumption before and after the project;
(e) the technology readiness level and duration of the technological innovation project, if applicable;
(f) the supply source for alternative fuel in the case of an energy conversion; and
(g) the estimated economic parameters for the project identified, showing separately
i. the cost of the investment needed to implement the project;
ii. annual operating costs before and after the project, including the carbon cost;
iii. if known, existing subsidy programs for the type of project concerned;
iv. the return on investment period; and
v. the pricing hypotheses used for the carbon cost estimate.
(4) Implementation of a GHG emissions reduction project
(4.1) Description
An eligible project within the meaning of this Part is a GHG emissions reduction project that
(1) was identified in a study of the technical and economic potential for GHG emissions reduction in compliance with the requirements of subdivision 3.3.2 of this Part that was completed or updated not later than 5 years before the submission of the project;
(2) targets a GHG emissions reduction compared to the baseline scenario;
(3) is completed in an establishment belonging to the emitter, or off site if the project allows GHG emissions to be reduced at a covered establishment in accordance with section 19 or 19.0.1;
(4) has a return on investment period of more than 1 year; and
(5) targets, if it includes an energy conversion project, a replacement energy source from the following list:
(a) a fossil fuel producing fewer GHG emissions than the baseline scenario;
(b) renewable electricity;
(c) green hydrogen, excluding projects where direct electrification is possible;
(d) first-generation renewable natural gas;
(e) residual biomass, from supplies in Québec only;
(f) bioenergy produced by pyrolysis from residual forest biomass.
Despite subparagraph 1 of the first paragraph, a project implemented by an emitter in a newly operational establishment within the meaning of section 2 is also eligible within the meaning of this Part if it begins not later than 5 years after the start of operations.
(4.2) Submission of a project
Before the Minister pays the sums in accordance with the terms and conditions of Division 11 to allow the emitter to complete a GHG emissions reduction project, the emitter must send the Minister a project submission form signed and dated by a duly authorized person. All applications must be submitted before 31 December 2030.
The following information and documents must be submitted with the form referred to in the first paragraph:
(1) a project plan and surveillance plan drawn up by the emitter or an external consultant, including a quantification of the reductions in GHG emissions resulting from the project on the site at the establishment, validated by a third person qualified to quantify GHG emissions who is a member of the Ordre des ingénieurs du Québec and who certifies that the reduction in GHG emissions and the baseline scenario were quantified in accordance with ISO Standard 14064-2. A document showing the validation must be included;
(2) a financial plan for the project;
(3) in the case of an energy conversion project, a demonstration of the emitter’s intention to maintain the emissions reduction for 10 years, in the form of a supply contract, agreement with a supplier, proof of investment by the emitter or supplier, or another equivalent document;
(4) in the case of a renewable electricity conversion project, all the measures taken to optimize its energy efficiency;
(5) a project timeline;
(6) any other information considered necessary by the emitter.
After receiving the project submission form, the Minister confirms in writing that the emitter may begin the implementation of its GHG emissions reduction project and that expenses may be incurred.
(4.3) Reporting requirements for a project with capital investment
The payment of the sums in accordance with the terms and conditions of Division 11 is conditional on the receipt of the documents and information referred to in subdivisions 4.3.1 and 4.3.2, depending on whether the project is being implemented or has been completed.
(4.3.1) Annual report
If the project has not been completed by the end of a year, the emitter must file with the Minister between 31 January and 1 March each year, for expenses paid up to the preceding 31 December, an annual report including the following information and documents:
(1) a financial report compliant with Division 6 of this Part;
(2) the forecasts for project expenses for the period from 1 January to 31 March of the current year;
(3) the annual budget forecasts for the subsequent years;
(4) an updated timeline for the project;
(5) a progress report, including in particular a description of the project, the progress made and the activities scheduled up to the end of the project;
(6) an updated surveillance plan, if changes have been made since the filing of the last annual report;
(7) any other information considered necessary by the emitter.
The Minister may ask the emitter for an update of the financial plan for the project in November and June each year. The update must be sent to the Minister not later than 1 month after the Minister asks the emitter for the update.
(4.3.2) Final report and continuation of reduction measures
Once the project has been completed, the emitter must file with the Minister, within 12 months of the end of the project and not later than 5 years after the date of filing of the project submission form referred to in subdivision 4.2, a final report including the following documents and information:
(1) a financial report compliant with Division 6 of this Part;
(2) the following information:
(a) a description of the project;
(b) a description of the baseline scenario;
(c) the method used to quantify GHG emissions and implement the surveillance plan;
(d) a quantification of the representative GHG emissions reductions for the year following the implementation of the project, presented in the form of a GHG emissions report consistent with ISO Standard 14064-2 verified by a third person qualified to quantify GHG emissions.
Once the project has been completed, the emitter must undertake to maintain the GHG emissions reduction measures for a period of 10 years. During that period, the emitter must file with the Minister, on 1 March each year, a written attestation signed by one of its representatives confirming that the project equipment is functioning adequately.
(4.4) Reporting requirements for an energy conversion project involving supplementary operating costs
Before the Minister pays the sums in accordance with the terms and conditions of Division 11 for the implementation by the emitter of a project, involving supplementary operating costs, to convert to renewable electricity, green hydrogen, first-generation renewable natural gas, residual biomass or bioenergy from pyrolysis using residual forest biomass, the emitter must file with the Minister between 31 January and 1 March each year, for expenses paid up to the preceding 31 December, an annual report including the following information and document:
(1) a financial report compliant with Division 6 of this Part;
(2) a forecast of expenses for the period from 1 January to 31 March of the year during which the annual report is sent;
(3) a forecast of annual expenses for the following years;
(4) a GHG emissions reduction report, including in particular
(a) a quantification of GHG emissions reductions during the year, presented in the form of a GHG emissions report consistent with ISO Standard 14064-2 with respect to the conversion;
(b) the supplementary operating costs, detailing
i. the rate for the replaced energy and for the replacement energy;
ii. the carbon cost for the replaced energy and for the replacement energy;
iii. the quantity of replaced energy and replacement energy; and
iv. the calculation method for the replacement energy rate; and
(c) any other information considered necessary by the emitter.
The Minister may request that the emitter provide an update of the financial plan for the project in November and June each year. The update must be sent to the Minister not later than 1 month after the Minister’s request.
(5) Implementation of a technological innovation project for the reduction of GHG emissions
(5.1) Description
An eligible project within the meaning of this Part is a technological innovation project for GHG emissions reduction that
(1) was identified in a study of the technical and economic potential for GHG emissions reduction in compliance with the requirements of subdivision 3.3.2 of this Part that was completed or updated not later than 5 years before the submission of the project;
(2) targets
(a) a technological innovation in the field of GHG emissions reduction whose technology readiness level is 4 to 8 within the meaning of Table 1 of this Part; or
(b) the field testing of technology for GHG emissions reduction which, to the emitter’s best knowledge, has not been used in establishments subject to this Regulation or is used only marginally;
(3) has potential for GHG emissions reduction on the site of an establishment operated by an emitter referred to in the first paragraph of section 2, subparagraph 3 of the second paragraph of section 2 or section 2.1; and
(4) is implemented in Québec.
(5.2) Submission of a project
Before the Minister pays the sums in accordance with the terms and conditions of Division 11 for the implementation by the emitter of a technological innovation project in the field of GHG emissions reduction, the emitter must send the Minister a project submission form signed and dated by a duly authorized person. All applications must be submitted before 31 December 2030.
The following information and documents must be submitted with the form referred to in the first paragraph:
(1) a financial plan for the project;
(2) a project plan and surveillance plan drawn up by the emitter or an external consultant, including a quantification of the reductions in GHG emissions resulting from the project on the site at the establishment, validated by a third person qualified to quantify GHG emissions who is a member of the Ordre des ingénieurs du Québec and who certifies that the reduction in GHG emissions and the baseline scenario were quantified in accordance with ISO Standard 14064-2. The project plan and surveillance plan must include, in particular,
(a) a project description;
(b) a testing protocol;
(c) the methods to be used to collect data to quantify GHG emissions reductions;
(d) the place in Québec where the technological innovation will be implemented;
(e) the address of the covered establishment that could benefit from the GHG emissions reductions from the project;
(f) the commercial or technical advantages that the implementation of the project could create compared to existing solutions available in the marketplace for the sector of activity; and
(g) the technology readiness level, from 4 to 8, in the area of GHG emissions reductions, within the meaning of Table 1 of this Part;
(3) a document showing the validation of the quantification of the reductions in GHG emissions attributable to the project on the site at the establishment referred to in subparagraph 2;
(4) any other information considered necessary by the emitter.
After receiving the project submission form, the Minister confirms in writing that the emitter may begin the implementation of the project and that expenses may be incurred.
(5.3) Reporting requirements
The payment of the sums in accordance with the terms and conditions of Division 11 is conditional on the receipt of the documents and information referred to in subdivisions 5.3.1 and 5.3.2, depending on whether the project is being implemented or has been completed.
(5.3.1) Annual report
If the project has not been completed by the end of a year, the emitter must file with the Minister between 31 January and 1 March each year, for expenses paid up to the preceding 31 December, an annual report including the following information and documents:
(1) a financial report compliant with Division 6;
(2) the forecasts for project expenses for the period from 1 January to 31 March of the current year;
(3) the annual budget forecasts for the subsequent years;
(4) an updated timeline for the project;
(5) a progress report, including in particular a description of the project and the progress made;
(6) any other information considered necessary by the emitter.
The Minister may ask the emitter for an update of the financial plan for the project in November and June each year. The update must be sent to the Minister not later than 1 month after the Minister asks the emitter for the update.
(5.3.2) Final report
Once the project has been completed, the emitter must file with the Minister, within 60 days from the end of the project and not later than 5 years after the date of filing of the project submission form referred to in subdivision 5.2, a final report including the following information and documents:
(1) a financial report compliant with Division 6;
(2) the following information:
(a) a description of the project;
(b) a description of the results obtained and the prospects for implementation;
(c) a validation by a third person qualified to quantify GHG emissions who is a member of the Ordre des ingénieurs du Québec and who certifies that the reduction in GHG emissions and the baseline scenario were quantified in accordance with ISO Standard 14064-2;
(d) any other information considered necessary by the emitter.
(6) Financial report
Every financial report submitted pursuant to this Part must contain the following information:
(1) an indication of all financial assistance obtained directly or indirectly from public bodies within the meaning of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1) or mandataries of the state;
(2) the expenses paid since the last annual report or, in the case of the first financial report submitted for the project, since the filing of the project submission form. The expenses must be broken down in accordance with the specifications of the template available on the website of the Ministère du Développement durable, de l’Environnement et des Parcs, and in particular into eligible expenses and non-eligible expenses;
(3) all the expenses for the project, including those that are not eligible, pursuant to Division 9 of this Part;
(4) a justification for variation between the information in the financial plan filed with the project submission form and the project as implemented;
(5) any other element of a financial nature;
(6) an audit report, in the cases provided for in Division 7 of this Part.
(7) Audit
As part of the reporting requirement specified in subdivision 3.3, 4.3, 4.4 or 5.3, as the case may be, every financial report must be submitted with an audit report in compliance with this Division when the eligible expenses for the project amount to $100,000 or more.
In addition, the Minister may request that the emitter provide an audit report for a financial report showing eligible expenses of less than $100,000. The report must be submitted to the Minister within 90 days.
The emitter is responsible for making the necessary requests to the auditor and managing the audit for the project. All audits must be conducted by external, independent auditors in accordance with the audit standards in force in Canada.
The audit report must certify that
(1) the project under way or completed complies with this Part and the template for the financial forecasts filed with the project submission form;
(2) the project has been implemented. If applicable, the auditor must certify the cost and nature of the work completed for the project that began and was completed after confirmation was received from the Minister pursuant to subdivision 3.2, 4.2 or 5.2, as the case may be;
(3) the work carried out for the project was not completed in conjunction with other work for which financial assistance was received. In such a case, the auditor must ensure that no financial assistance was received for eligible expenses for which a request for reimbursement has been made pursuant to Division 11 of this Part.
(8) Verification
Payments of the sums to which this Part applies may be verified by the Minister or by any other person or body as part of their duties or under a mandate from the Minister.
(9) Eligible expenses and non-eligible expenses
(9.1) Eligible expenses
To be eligible, an expense must
(1) have been incurred after written confirmation was received from the Minister pursuant to subdivision 3.2, 4.2 or 5.2, as the case may be;
(2) have been incurred for the implementation of a project to which this Part applies; and
(3) be necessary, justifiable and directly attributable to the implementation of the project. An eligible expense does not necessarily need to be incurred on the site of one of the emitter’s industrial establishments provided it is directly and reasonably connected with the project.
The following expenses, in particular, are eligible expenses:
(1) supplementary costs for the purchase of electrified, off-road rolling stock for use on site, compared to the cost of the same equipment powered by fossil fuels;
(2) fees for professional services provided for the implementation of the project, calculated in accordance with the methods set out in the Tarif d’honoraires pour services professionnels fournis au gouvernement par des ingénieurs (chapter C-65.1, r. 12);
(3) wages and benefits, with no surcharge, for employees of the emitter working directly on the eligible project. Proof of such expenses may be requested by the Minister, including copies of pay stubs;
(4) fees for specialized services;
(5) services performed as subcontracts;
(6) equipment rental costs for a time period not exceeding the duration of the project;
(7) expenses for the purchase and installation of equipment;
(8) project management costs;
(9) travel and accommodation costs connected with the implementation of the project, based on the standards in force as set out in the Directive concernant les frais de déplacement des personnes engagées à honoraires par des organismes publics (C.T. 212379, 2013-03-26);
(10) expenses incurred to prepare a strategy for the protection of intellectual property, to obtain protection for intellectual property, and to acquire rights or licences for intellectual property, including the costs relating to applications for patents such as patent agent’s fees;
(11) the cost of quantifying, validating and verifying GHG emissions reductions;
(12) transportation costs for equipment and materials;
(13) the expenses associated with the accounting audits requested by the Minister pursuant to Division 7 of this Part;
(14) supplementary costs, for operating expenses, for an energy conversion to bioenergy produced from residual forest biomass, residual biomass, renewable electricity, first-generation renewable natural gas or green hydrogen, calculated using the following equation:
Equation 1
Supplementary costi = [R2i + CC2i – (R1i+ CCi× CF)] × Q2i
Where:
Supplementary costi = Supplementary operating cost for year i;
i = Each year in the period 2024-2030 for which the emitter has a supplementary cost;
R2i = Replacement energy rate for year i;
CC2i = Carbon cost of replacement energy for year i;
R1i = Replaced energy rate for year i, using either the actual invoiced cost, the last invoiced cost, indexed, or a representative published cost;
CC1i = Carbon cost of replaced energy for year i;
CF = Conversion factor for energy, calculated using equation 2;
Q2i = Quantity of replacement energy consumed for the project in year i;
Equation 2
 CF = Q1 
 Q2 
Where:
CF = Conversion factor for energy;
Q1 = Quantity of replaced energy using the baseline scenario;
Q2 = Quantity of replacement energy under the project scenario, adjusted to match actual efficiency once the project is implemented;
(15) administration costs incurred in Québec that are directly connected to the implementation of the project, up to a maximum of 10% of the sums paid.
Where a project includes the replacement of obsolete equipment or the addition of space for a new construction, a new factory section, a new operating site, a new establishment or an enlargement, only the supplementary costs compared to the baseline scenario may be considered as eligible expenses.
For the purposes of the third paragraph, equipment is considered to be obsolete if it cannot function without repairs for the entire 10-year period for which a commitment is made to maintain GHG emissions reductions pursuant to this Part, or if the cost of the major repairs required to allow the equipment to function optimally for that period exceeds the cost of classic equipment for that period.
Eligible expenses must be booked by the emitter in accordance with generally accepted accounting principles.
(9.2) Non-eligible expenses
The following expenses are non-eligible expenses:
(1) expenses incurred before the emitter receives written confirmation from the Minister pursuant to subdivision 3.2, 4.2 or 5.2, as the case may be, including an expense for which the organization has made a contractual commitment, debt service, the reimbursement of future borrowing, a capital loss or replacement of capital, a payment or an outlay of capital;
(2) expenses relating to production losses, waste or other losses caused by the activities required to implement the project;
(3) operating expenses for routine activities such as the wages paid to officers or managers;
(4) the cost of acquiring or laying out land;
(5) sales tax applicable in Québec;
(6) marketing expenses;
(7) the expenses for maintaining intellectual property;
(8) upgrading to comply with standards, laws or regulations;
(9) supplementary costs for operating expenses in connection with the use of fossil energy.
(9.3) Cumulative financial assistance
Sums paid pursuant to this Part may be used to finance up to 100% of the eligible expenses of an eligible project.
The sums paid may be used to finance the project even if it receives other governmental financial assistance, provided that the cumulative total of the sums paid and the other governmental financial assistance does not exceed 100% of eligible expenses. If the total exceeds 100% of eligible expenses, the total of the sums paid pursuant to this Part must be reduced to comply with that limit.
The total of the sums paid pursuant to this Part must not be considered in calculating the cumulative total of financial assistance from public bodies within the meaning of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1) or from mandataries of the state, obtained under an agreement between the emitter and, as the case may be, the public body or mandatary, when the cumulative total is limited by the agreement.
The second and third paragraphs apply despite any other clause in an agreement, signed before or after the coming into force of those paragraphs, between the emitter and the government or one of its ministers or a public body or state mandatary.
(10) Obligations of the emitter
Every emitter implementing an eligible project must
(1) report to the Minister all financial assistance applied for or received for the project, in writing and as soon as possible;
(2) reimburse any sum paid for the implementation of a GHG emissions reduction project referred to in Division 4 of this Part for which the GHG emissions reduction measures are not maintained for a 10-year period in proportion to the number of years for which the emitter fails to maintain the measures;
(3) ensure that all the information and documents provided pursuant to this Part are complete and accurate and that all the estimates and forecasts they contain are prepared to the best of the emitter’s abilities and judgment and in good faith;
(4) allow the Minister, with a 48-hour prior notice sent by the Minister, to examine, verify, make copies of and have access to any document or information and the site where the project is implemented allowing the Minister to verify that the project complies with the terms and conditions of this Part, for a period extending to 24 months after the end date of the project or, in the case of a GHG emissions reduction project referred to in Division 4 of this Part, for the entire 10-year period during which the emitter has undertaken to maintain the GHG emissions reduction measures;
(5) preserve all documents and information relating to financial assistance during a 10-year period following the end of the eligible project and providing the Minister, on request, with a copy of such documents and information within the time specified by the Minister;
(6) inform the Minister of any substantial change to the project and provide the Minister with all available information concerning the effects of the change on the implementation costs and concerning any other major impact on the project and its financing.
(11) Terms and conditions for the payment of the sums
When an emitter meets the requirements of this Part, the sums determined pursuant to section 54.1 are paid in accordance with the agreement between the Minister and the emitter and the following terms and conditions:
(1) the sums are paid as an annual reimbursement to the emitter once the Minister has received the annual report referred to in subdivision 3.3, 4.3, 4.4 or 5.3, as the case may be;
(2) the reimbursement referred to in subparagraph 1 is an amount equal to, at minimum, 85% of the eligible project expenses detailed in the financial report contained in the annual report or 85% of the sums determined for the emitter pursuant to section 54.1 and reserved, in the emitter’s name, pursuant to that section;
(3) an amount equal to the remainder of the eligible project expenses detailed in the financial reports contained in the annual reports filed by the emitter since the start of the project is paid to the emitter after the Minister receives the final report referred to in subdivision 3.3, 4.3 or 5.3, as the case may be, up to the sums determined for the emitter pursuant to section 54.1 and reserved, in the emitter’s name, pursuant to that section.
Despite subparagraphs 2 and 3 of the first paragraph, the reimbursement referred to in subparagraph 1 of that paragraph is equal to 100% of the eligible project expenses when they are expenses resulting from eligible supplementary operating costs relating to an energy conversion, up to the sums determined pursuant to section 54.1 and reserved, in the emitter’s name, pursuant to that section.
The agreement referred to in the first paragraph may, despite subparagraph 1 of that paragraph, provide for the reimbursement of any eligible expense, except an eligible expense connected to a supplementary operating cost, detailed in a financial report filed up to 10 years before the reimbursement, up to the sums determined pursuant to section 54.1 and reserved, in the emitter’s name, pursuant to that section.
(12) Use of sums
An emitter may use the sums paid under this Part to implement several eligible projects, up to the sums determined for that emitter and reserved in the emitter’s name pursuant to section 54.1.
The emitter may transfer some or all of the sums paid to it pursuant to Division 11 of this Part and pursuant to an agreement entered into with the Minister in accordance with section 46.8.1 of the Environment Quality Act (chapter Q-2) to a partner emitter that is part of the same group within the meaning of subparagraph 3 of the second paragraph of section 9 (“partner emitter”) and that implements an eligible project at one of its covered industrial establishment, on the following conditions:
(1) the emitter and the partner emitter have disclosed their corporate structure and business relationship in accordance with sections 7, 9 and 14.1 and the disclosure has been certified by one of their respective account representatives;
(2) before each transfer of some or all of the sums paid pursuant to Division 11 of this Part, the emitter’s account representative and the partner emitter’s account representative have certified that the updated information concerning their corporate structure and business relationship has been communicated to the Minister in accordance with section 14.1 and is up to date;
(3) the emitter and the partner emitter are part of the same group within the meaning of subparagraph 3 of the second paragraph of section 9;
(4) an emitter that transfers, to a partner emitter, some or all of the sums paid pursuant to Division 11 of this Part must, before each request for payment made to the Minister, certify that it agrees to transfer some of all of the sums;
(5) an agreement has been signed by the partner emitter and the Minister in accordance with section 46.8.1 of the Environment Quality Act;
(6) the emitter has entered into and submitted to the Minister an agreement with the partner emitter containing the following information at minimum:
(a) the names of the parties to the agreement;
(b) the amount of the sums transferred;
(c) the title and an outline description of the eligible project that the partner emitter intends to implement;
(d) the obligations of the emitter pursuant to this Part, including the reporting requirement, which are transferred to the partner emitter with respect to the sums transferred.
If the partner emitter fails to perform its obligations in accordance with the agreement filed with the Minister pursuant to subparagraph 6 of the second paragraph of this Division, the Minister may require the transferring emitter to perform an obligation under the agreement with respect to the amount of the sums transferred.
(13) Quantification and verification of GHG emissions
All data filed by the emitter pursuant to this Part must be expressed in units of the International System of Units, in which the unit for quantifying GHG emissions is the metric tonne CO2 equivalent (tCO2e).
The GHG emissions reduction for each project included in a study of the technical and economic potential must be estimated in accordance with ISO Standard 14064.
The GHG emissions reductions for GHG emissions reduction projects must be estimated in accordance with ISO Standard 14064.
For the purposes of this Part, the baseline scenario is the scenario presenting the fewest constraints at implementation, whether the constraints are functional, environmental, economic, social, legal or other. The baseline is a situation in which problems of upgrading to meet standards, compliance with established rules, and action to correct obsolescence or deficient maintenance have been dealt with. In addition, the baseline scenario may result from a detailed energy use simulation or a representative history.
Where data on a GHG emissions reduction have been filed with Minister pursuant to this Part, the data must meet the following requirements:
(1) the GHG emissions reduction for each measure in a project must exceed an emissions baseline based on a market standard or established trade practice or a rule that is mandatory pursuant to a law, regulation or standard. The measure must also have an impact beyond a natural seasonal variation, a standard process variation or a historical variation compared to the baseline scenario;
(2) the GHG emissions reduction must be evident and identifiable and result directly from the implementation of the project;
(3) the GHG emissions reduction must be measurable and quantifiable compared to the emissions baseline and must go beyond the normal variation in the baseline scenario. The emissions must be quantified in accordance with ISO Standard 14064-2;
(4) the GHG emissions reduction must have been verified using a precise, transparent and reproducible methodology, and the raw data needed to verify the calculation must be available.
A reduction in the GHG emissions attributable to a project must be quantified in accordance with the requirements of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15).
GHG emissions reductions must target verified GHG emissions, with the exception of electrified off-road rolling stock for use on the site, compared to emissions from the same equipment operated using fossil energy.
GHG emissions reductions must be evaluated compared to an emissions baseline using one of the 2 following methods:
(1) the use of a procedure specific to the project, when there is a lack of comparable data in the sector concerned or when the data is difficult to obtain. The baseline scenario must be identified through a structured analysis of project activities and possible options;
(2) in all other cases, the use of standardized performance when comparable data in the sector concerned are available, either in the form of statistical data from the sector, standardized performance data for equipment, established trade practice or standards imposed by a law or regulation.
(14) Public nature of documents and information
The Minister may publish, on the website of the Minister’s department,
(1) a list of the emitters that have signed an agreement pursuant to section 46.8.1 of the Environment Quality Act (chapter Q-2); and
(2) a list of the emitters that are implementing or have implemented projects under this Part and the cost of such projects, the sums determined pursuant to section 54.1 for the implementation of such projects, and an outline description of the projects, including
(a) the dates of completion;
(b) the type of project, a quantification of the GHG emissions reductions that are attributable to the projects or their GHG emission reduction potential; and
(c) in the case of a project that is completed, the information on the compliance with the emitter’s obligation to maintain the GHG emissions reduction measures.
Table 1 - Technology readiness levels
Technology readiness levels (TRL)Description
TRL 1 – Basic principles of concept are observed and reported (conceptual articulation)Lowest level of technology readiness. Scientific research begins to be translated into applied research and development (R&D).
TRL 2 – Technology concept and/or application formulated (technology and applications described)Invention begins. Once basic principles are observed, practical applications can be invented. Applications are speculative, and there may be no proof or detailed analysis to support the assumptions.
TRL 3 – Analytical and experimental critical function and/or characteristic proof of concept (laboratory studies and analytical studies)Active R&D is initiated. This includes analytical studies and laboratory studies to physically validate the analytical predictions of separate elements of the technology.
TRL 4 – Component and/or breadboard validation in laboratory environment (validation of a limited-capacity prototype in the laboratory [pre-alpha version])Basic technological components are integrated to establish that they will work together. This is relatively “low fidelity” compared with the eventual system.
TRL 5 – Component and/or breadboard validation in relevant environment (validation of the prototype to maximum capacity in the laboratory [alpha version])Fidelity of breadboard technology increases significantly. The basic technological components are integrated with reasonably realistic supporting elements so they can be tested in a simulated environment.
TRL 6 – System/subsystem model or prototype demonstration in a relevant environment (validation of the prototype in a relevant environment [pre-beta version])Representative model or prototype system, which is well beyond that of TRL 5, is tested in a relevant environment. Represents a major step up in a technology's demonstrated readiness.
TRL 7 – System prototype demonstration in an operational environment (validation of system in an operational environment [beta version])Prototype near or at planned operational system. Represents a major step up from TRL 6 by requiring demonstration of an actual system prototype in an operational environment.
TRL 8 – Actual system completed and qualified through test and demonstration (initial production and deployment)Technology has been proven to work in its final form and under expected conditions. In almost all cases, this TRL represents the end of true system development.
TRL 9 – Actual system proven through successful mission operations (full production mode)Actual application of the technology in its final form and under mission conditions, such as those encountered in operational test and evaluation (OT&E).
O.C. 1297-2011, Sch. C; O.C. 1184-2012, s. 51; O.C. 1138-2013, s. 28; O.C. 902-2014, s. 65; O.C. 1089-2015, s. 30; O.C. 1125-2017, s. 60 to 63; O.C. 1288-2020, ss. 18 to 20; O.C. 1462-2022, ss. 50 to 52.
APPENDIX C
(ss. 39, 40 and 41)
Part I
Table A Activities eligible for the allocation without charge of greenhouse gas emission units

_________________________________________________________________________________
| | |
| Activity | 6-digit NAICS* code beginning |
| | with |
|________________________________________|________________________________________|
| | |
| Mining and quarrying (except oil | 212 |
| and gas) | |
|________________________________________|________________________________________|
| | |
| Electric power generation sold under a | 2211 |
| contract signed prior to 1 January | |
| 2008, that has not been renewed or | |
| extended after that date, in which the | |
| sale price is fixed for the duration | |
| of the contract, with no possibility | |
| of adjusting the price to take into | |
| account the costs relating to the | |
| implementation of a cap-and-trade | |
| system for greenhouse gas emission | |
| allowances | |
| | |
| Until 2020, Acquisition, for the | |
| consumption of the enterprise or for | |
| sale in Québec,of power generated in | |
| another Canadian province or territory | |
| or in a state in which the government | |
| has established a cap-and-trade system | |
| for greenhouse gas emission allowances | |
| targeting power generation, but has | |
| not signed an agreement referred to in | |
| section 46.14 of the Environment | |
| Quality Act (chapter Q-2) | |
|________________________________________|________________________________________|
| | |
| Steam and air-conditioning supply | 22133 |
| for industrial purposes | |
|________________________________________|________________________________________|
| | |
| Manufacturing | 31, 32 or 33 |
|________________________________________|________________________________________|
| | |
| Beginning in 2021: Acquisition, for the| |
| consumption of the enterprise or for | |
| sale in Québec, of power generated in a| |
| state in which the government has | |
| established, within its territory, a | |
| cap-and-trade system for greenhouse | |
| gas emission allowances targeting | |
| power generation, but has not signed | |
| an agreement referred to in section | |
| 46.14 of the Environment Quality Act | |
|________________________________________|________________________________________|
Table B Reference units1
Part II
Calculation methods for the allocation of emission units without charge
(A) Definition
For the purposes of the calculation methods,
(0.1) old GWP values : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15) in force on 31 December 2020;
(1) covered establishment as of 2013 means an establishment for which the GHG reported emissions for 2009, 2010 or 2011 are equal to or exceed the emissions threshold;
(2) covered establishment after 2013 means an establishment for which the verified GHG emissions for 2012, 2013, 2014 or 2015 are equal to or exceed the emissions threshold;
(3) covered establishment as of 2018 means an establishment for which the verified GHG emissions for 2016, 2017 or 2018 are equal to or exceed the emissions threshold;
(4) establishment covered prior to 2021 means an establishment referred to in paragraph 1, 2 or 3, or an establishment referred to in section 2.1 before 2021 that is still targeted by the system in 2021;
(5) covered establishment as of 2021 means an establishment for which the verified GHG emissions for 2019 or for any of the subsequent years are equal to or exceed the emissions threshold;
(6) new GWP values : global warming potential values provided for in Schedule A.1 to the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere in force on 1 January 2021.
(B) Categories of GHG emissions by origin
GHG emissions are divided into 3 categories on the basis of their origin: fixed process emissions, combustion emissions and other emissions.
Fixed process emissions are the CO2 emissions resulting from a fixed chemical reaction process for production purposes that generates CO2, from chemically-bonded carbon in the raw material, or from the carbon used to remove an undesirable component from the raw material where there is no substitutable raw material.
Combustion emissions are the emissions resulting from the exothermic reaction of any fuel, except CO2 emissions attributable to the combustion of biomass or biomass fuels.
Other emissions are the emissions that do not meet the criteria for fixed process emissions or combustion emissions.
(C) Establishments and new facilities considered on a sectoral basis for the allocation of emission units without charge
For the purpose of calculating the number of emission units that may be allocated without charge to an emitter, establishments and new facilities pursuing the following activities are considered on a sectoral basis:
(1) lime production;
(2) cement production;
(3) prebaked anode production and aluminum production using prebaked anode technologies until 2020;
(4) prebaked anode production and aluminum production using prebaked anode technologies except a side-worked prebaked anode technology as of 2021.
(D) Calculation methods
For the application of the methods set out in this Part, the result of an intensity target of emissions calculation is rounded off to four significant figures and the result of an emission unit allocation calculation is rounded up to the nearest whole number.
For the application of the calculation methods set out in this Part, the GHG emissions data used are
(1) for the years 2007 to 2011, the data for reported emissions, minus the emissions referred to in the second paragraph of section 6.6 of the Regulation respecting mandatory reporting of certain emissions of contaminants into the atmosphere (chapter Q-2, r. 15)
(2) for the years 2012 and following, the verified emissions.
Subject to the fifth paragraph, the total quantity of GHG emission units allocated without charge to an emitter referred to in section 2 is calculated in accordance with the following methods:
(1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 2-1 to 2-9;
(1.1) in the case of an establishment covered as of 2013 that is not considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1 and 4-1 to 4-8;
(2) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that possesses GHG emissions data for 2007-2010, using equations 1-1 and 3-1 to 3-10;
(2.1) in the case of an establishment covered as of 2013 that is considered on a sectoral basis and that does not possess GHG emissions data for 2007-2010, using equations 1-1, 5-1 and 5-2;
(3) in the case of an establishment covered after 2013 that is not considered on a sectoral basis, using equations 1-1 and 4-1 to 4-8;
(4) in the case of an establishment covered after 2013 that is considered on a sectoral basis, using equations 1-1 and 5-1 for the years 2013 to 2014, using equation 5-2 for the years 2015 to 2017 and using equation 5-3 for the years 2018 to 2020;
(5) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 1-1 and 4-9 to 4-14;
(6) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-15 to 4-20;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until the data are all available;
(7) in the case of a covered establishment as of 2018 that is not considered on a sectoral basis, that does not possess a determined reference unit, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 1-1 and 4-23 and 4-24;
(b) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are not all available, using equations 1-1, 4-21 and 4-22, until those data are all available;
(8) in the case of an establishment covered prior to the year 2021 that is not considered on a sectoral basis, using equations 7-1 and 8-1 to 8- 10 for the years 2021 to 2023;
(9) in the case of an establishment covered prior to the year 2021 that produces cement, prebaked anodes or aluminum by using a prebaked anode technology other than the side-worked prebaked anode technology, using equations 7-1 and 9-1 for the years 2021 to 2023;
(10) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis and that possesses all the GHG emissions data for years d-2 to d, using equations 7-1 and 10-1 to 10-4;
(11) in the case of a covered establishment as of 2021 that is not considered on a sectoral basis, that does not possess all the GHG emissions data for years d-2 to d, and for which, as the case may be,
(a) the GHG emissions data for years d to d+2, or d+1 to d+3 where d is the year in which the establishment became operational, are all available, using equations 7-1 and 11-1 to 11-4;
(b) the GHG emissions data for years d to