California Launches Cap And Trade – Will Other WCI Jurisdictions Follow?

On October 20, 2011, the California Air Resources Board ("CARB") adopted regulations to implement a state-wide cap and trade program to regulate greenhouse gas ("GHG") emissions commencing January 1, 2013. California and five other U.S. states are members of the Western Climate Initiative ("WCI"), together with the provinces of Ontario, Quebec, British Columbia and Manitoba. On July 7, 2011, Quebec published for comment draft regulations to implement its own provincial cap and trade program, also expected to commence on January 1, 2013. British Columbia and Ontario continue to support the WCI, but have not made a decision on their respective start dates. The California program is designed to link in the future with similar programs in other WCI jurisdictions, so the features of the California program should be of interest to GHG emitters in Canada.