[Hatem]

Very True Nikan,

In several energy cost analysis reports, it is noted that Quebec has fewer opportunities to generate low-cost CC1 credits, primarily due to its limited local oil and fuel production. Since many CC1 credits come from reducing emissions in fuel production and refining, and Quebec relies mostly on imported fuels, these options are limited. Also, Quebec’s clean energy system means there are fewer large fossil fuel projects to improve. As a result, Quebec tends to depend more on credits from cleaner fuels and advanced vehicle technologies, which are generally higher in cost.

Note:
Since Quebec has limited local oil production (fewer CC1 opportunities), it relies more on these CC2 and CC3 credits. However, these tend to be more expensive to produce or procure, which means overall compliance costs can be higher for Quebec compared to provinces with more CC1 credit opportunities.