Sep 22, 2017
By Michael Kramer
Ontario has signed an agreement to become part of Quebec and California’s cap-and-trade system – as of next January 1st.
The province has been operating its own system this year – targeting lower greenhouse gas emissions – and has seen three sell-out auctions in a row.
The system caps the amount of pollution that companies in certain industries can emit – and if they go over those limits they have to buy allowances at auction – or from other companies that come in under their limits.
Ontario Premier Kathleen Wynne says it’s hugely important for Canada’s two largest provinces – and America’s largest state – to play a leadership role in reducing emissions.
And California Governor Jerry Brown noted that the administration of U.S. President Donald Trump may not have an agenda of fighting climate change – but that’s exactly why it’s important for subnational governments to move forward.
The Quebec-California market has seen an average of three-quarters of available credits selling at auction, since 2014.