Quebec-California carbon market joint auction

November 26, 2025

The Montréal Times delivers a data-driven update on the Quebec-California carbon market joint auction November 26, 2025, detailing what happened last week, what the results signal for policy and markets, and what comes next for participants across both jurisdictions. This latest joint auction, held on November 19, 2025, is part of the linked cap-and-trade framework that underpins emissions reductions in Québec and California. On November 26, 2025, the authorities published the official results and bidder participation data, adding another data point to a years-long trend of cross-border carbon market cooperation under the Western Climate Initiative. The implications extend beyond the two markets, informing corporate strategies, regional policy debates, and the broader conversation about how carbon markets can scale alongside technology deployment and investment in low-carbon solutions. The event matters because it demonstrates how linked markets operate in practice, how price and volume signals influence compliance planning, and how public funds generated from auction proceeds are reinvested to accelerate climate action. The November 26, 2025 disclosure marks a quarterly cadence of transparency that market participants depend on to calibrate expectations and budgeting across North America. (quebec.ca)

Section 1: What Happened

Auction parameters and scope The November 2025 joint auction represented the fifty-fifth year of collaboration between Québec and California on cap-and-trade emissions units, a program that has evolved through multiple market cycles since its inception. The November 19, 2025 joint auction window ran from 1:00 p.m. to 4:00 p.m. Eastern Time, consistent with the established practice for these cross-border sales. The publicly announced scope for this auction included a Current Auction tranche and an Advance Auction tranche (the latter consisting of 2028 vintage allowances). The unit counts were visible in the official notices and subsequent press materials: a total of 51,253,305 emission units were offered in the Current Auction and 6,847,750 emission units were offered in the Advance Auction (2028 vintage). The minimum bid price for the sale was set at CAD 36.21 per emission unit, reflecting a typical floor that aligns with recent auction practice and cross-border currency considerations. These figures are consistent with the joint-auction framework and the Western Climate Initiative’s governance of linked markets. The results notice also emphasizes that the auction is designed to help participants meet compliance obligations under their respective cap-and-trade systems. (quebec.ca)

Participation and bid mechanics As in prior cycles, the joint auction enables bidders from Québec and California to submit sealed bids through a shared platform within the designated window. The design of the joint auction—combining Québec’s MELCCFP administration with the California Air Resources Board (CARB) in a synchronized sale—serves multiple goals: it preserves market liquidity, broadens access for regulated entities, and creates price transparency across the linked markets. The public-facing notices for Joint Auction #45 (the November 2025 edition) outline the process, eligibility criteria, and bid guarantees, mirroring the procedural detail that participants rely on for risk management and portfolio optimization. The auction notices and related materials are archived and publicly accessible, underscoring the commitment to accountability within the cross-border framework. (quebec.ca)

Disclosures and early observations In line with the normal course, the auction’s formal results—specifically the quantity of emission units sold and the final clearing prices—were not released immediately at the close of bidding. Instead, the authorities noted that a results posting would occur on the ministry’s website on November 26, 2025. This staged release schedule aligns with prior practice, which balances the need for rapid public disclosure with the administrative steps required to finalize cross-border settlements and publish a comprehensive summary. The November 26 results posting includes the sale totals, as well as the identities (or at least the number) of participating bidders, providing a transparent view into market participation and liquidity. For analysts and market participants, this approach supports post-auction analysis, including cross-market price correlations, bid depth, and the impact on near-term emission compliance planning. The official notice confirms the “Results of the November 26, 2025” posting and serves as a critical data point for subsequent reporting and interpretation. (quebec.ca)

Historical context and ongoing evolution The 2025 edition of the joint auction continues a pattern of alternating, calendar-aligned sales that have characterized the Québec–California linkage since its early years. The linked system is part of the Western Climate Initiative, a broader framework for regional cooperation on carbon markets that seeks to align incentives for emission reductions and to mobilize investment in low-carbon technologies. The CARB auction information page, which tracks joint auctions and their outcomes, confirms the ongoing cadence and the shared governance structure that ties Québec’s MELCCFP and California’s CARB together. This structure matters for market participants who manage multi-jurisdictional compliance obligations, as it shapes hedging strategies, risk management, and capital allocation across North American markets. In short, the November 26, 2025 results are not just a snapshot of a single day’s activity; they reflect the cumulative effect of policy design, market depth, and cross-border coordination that have matured over more than a decade. (ww2.arb.ca.gov)

Section 2: Why It Matters

Market signals for policy and business strategy The Quebec-California linked market is designed to emit predictable price signals that guide corporate investment decisions in clean technologies, energy efficiency, and decarbonization projects. The 2025 auction cycle, including the November 19 sale and the November 26 results posting, contributes to a broader price discovery process that informs both regulatory planning and private-sector capital allocation. For businesses operating in Canada and the United States, the auction results—particularly the floor price and the scale of units on offer—provide a reference for budgeting emissions compliance costs, planning avoidance or mitigation strategies, and evaluating the economics of emissions reductions. The existence of the Advance Auction, featuring 2028 vintage allowances, also introduces a longer horizon for strategic planning, enabling firms to secure forward positions and hedge against near-term price volatility. These dynamics are central to the market’s role in driving decarbonization while providing a stable revenue stream for program administration and climate investments. The official notices and CARB’s auction documentation emphasize the ongoing relevance of these signals for market participants. (quebec.ca)

Public finance and climate investment implications Auction proceeds in Québec have historically funded a mix of electrification, climate resilience, and economic transition initiatives. The August 2025 auction results, for example, highlighted revenue flows directed into the Electrification and Climate Change Fund, underscoring how market operations translate into tangible policy finance. The November 2025 cycle continues this pattern, with the potential for substantial proceeds to be allocated to programs that support the province’s climate goals while fostering innovation and industrial modernization. For California, the joint auction proceeds feed into the California Air Resources Board’s program design and public reporting framework, reinforcing the link between market performance and environmental outcomes. Together, these dynamics illustrate a model in which market performance—not solely regulatory mandates—shapes the pace and direction of low-carbon investments across North America. The joint auction notices and related reporting materials provide the primary documentation of how proceeds are used and how they support policy objectives. (quebec.ca)

Cross-border liquidity and market confidence A key takeaway from the November 26, 2025 posting is the ongoing liquidity of the Québec–California market. Liquidity is essential for ensuring that emitters can meet compliance requirements without incurring excessive transaction costs, while also enabling more accurate price formation. The joint nature of the auctions—where bidders from both jurisdictions participate under a unified framework—helps reduce fragmentation and enhances investor confidence. This is particularly important as more companies pursue multi-jurisdictional decarbonization strategies, requiring consistent access to affordable compliance options. Industry observers have long noted that liquidity and predictability are the twin pillars of an effective carbon market, and the 2025 results tend to reinforce that assessment. The CARB auction information page and Québec’s MELCCFP notices collectively reinforce the view that the joint auction design remains a stabilizing feature for market participants. (ww2.arb.ca.gov)

Geopolitical and policy context In a broader policy sense, the Québec–California linkage is a practical demonstration of regional cooperation on climate policy that complements national and international decarbonization efforts. It aligns with a growing interest in market-based mechanisms as a complement to technology mandates and sectoral regulations. The Western Climate Initiative’s long-standing collaboration across jurisdictions provides institutional support for cross-border trading, price alignment, and cooperative administration. While the November 26, 2025 results are specific to Québec and California, the underlying lessons—about market design, cross-border governance, and transparent reporting—have resonance for other regions exploring cap-and-trade or linked-market concepts. The official auction notices, along with CARB’s repository of joint auction information, offer a transparent view into how these policy tools function in practice and how policymakers adapt them over time to balance environmental aims with economic considerations. (quebec.ca)

Who is affected and how The auction outcomes touch several stakeholder groups: regulated emitters needing to meet compliance obligations, financial institutions and traders providing liquidity, technology providers delivering decarbonization solutions, and public authorities funding climate programs. For large industrials and utilities, the availability of current and 2028 vintage allowances at a set minimum price informs long-horizon planning for emissions reductions and capital expenditure cycles. For small and mid-sized market participants, the transparency of the joint auction process and the publication of results on a fixed timetable enhances confidence and reduces information asymmetry. For policymakers, the auction remains a performance metric—demonstrating whether the linked market is delivering anticipated price signals and whether the proceeds align with climate finance goals. The November 26, 2025 posting functions as a critical data point in assessing the market’s effectiveness and informing subsequent policy adjustments. (quebec.ca)

Section 3: What’s Next

Upcoming timeline and next steps With the November 26, 2025 results now public, the next steps focus on post-auction reporting, market analysis, and ongoing program administration. The CARB and MELCCFP frameworks typically publish a comprehensive Post Joint Auction Proceeds Report and a Summary Results Report in subsequent weeks, capturing price outcomes, unit distribution, and the impact on compliance planning for market participants. These reports are essential for analysts looking to model price trajectories, evaluate the effectiveness of the floor price, and understand how forward-looking vintage auctions influence corporate investment decisions in low-carbon technologies. The CARB auction notices page and the Québec ministry’s auction notices remain the authoritative sources for the latest data and any updates to the auction calendar. Market participants and observers will closely monitor these posts to calibrate their strategies for the next auction cycle. (ww2.arb.ca.gov)

Implications for policy and market design going forward Looking ahead, the November 2025 results contribute to ongoing debates about the role of price floors, the distribution of revenue, and the pace of decarbonization in linked markets. The observed dynamics in Québec and California—such as the balance between Current and Advance Auction tranches and the reliance on a fixed minimum price—offer practical data for policymakers to assess whether adjustments are needed to sustain liquidity and ensure that market signals align with emissions reduction targets. The cross-border nature of the joint auction adds complexity but also resilience; it invites further collaboration on risk management tools, settlement processes, and the harmonization of regulatory requirements across jurisdictions. Analysts will be watching for any signals of price convergence or divergence between the two markets, as well as shifts in demand for advance vintages as corporate planning horizons lengthen. The official sources—auction notices and CARB’s auction information repository—will be the primary references for these evolving dynamics. (ww2.arb.ca.gov)

What participants should watch for in the near term

Post-auction disclosures: The November 26, 2025 posting is followed by a formal summary and public-proceeds reporting. Stakeholders should review these documents to understand how many units sold at which prices, and how proceeds will be allocated. (quebec.ca)
Feedback from market participants: Traders and emitters will assess bid-coverage, auction liquidity, and the practicality of using Advance Auction vintages for forward planning. These observations will feed into the market’s perceived stability and potentially influence bidding strategies in future cycles. (ww2.arb.ca.gov)
Policy signals and program funding: With revenue streams directed toward electrification, climate resilience, and related initiatives in Québec, and with California’s ongoing program design supported by CARB, stakeholders should monitor official statements and budgetary plans that tie auction outcomes to on-the-ground climate investments. (quebec.ca)
Calendar and notice updates: The joint auction calendar is published by MELCCFP and CARB, with notices detailing upcoming auctions, eligibility, and bid procedures. Keeping an eye on these notices helps market participants prepare for future cycles and stay compliant. (ww2.arb.ca.gov)

Closing

The Quebec-California carbon market joint auction November 26, 2025 results represent more than a quarterly data point. They reflect a mature cross-border mechanism that seeks to balance environmental objectives with market efficiency, providing a transparent, predictable pathway for emitters to meet compliance obligations while investing in low-carbon technologies. For readers of the Montréal Times, the news is both timely and informative: the auction continues to demonstrate how linked cap-and-trade systems can function in practice, fostering liquidity, clarifying price signals, and reinforcing renegotiated commitments to climate action across two major North American jurisdictions. As policymakers, business leaders, and investors interpret the November 26, 2025 results, the broader takeaway is clear: the Québec–California joint auction remains a central instrument in the region’s decarbonization toolkit, with real implications for industry strategy, public finance, and the pace of climate innovation. The ongoing collaboration between MELCCFP and CARB, the transparency of results, and the commitment to a shared governance framework will be watched closely as the markets prepare for future cycles. (quebec.ca)