Canadian Premiers May Embrace Cap-And-Trade Schemes

Several Canadian provinces, like an increasing number of U.S. states, are actively contemplating adopting cap-and-trade schemes as one of the principal mechanisms to help reduce local greenhouse gas emissions – in some cases in coordination with other provinces and states but independent of the federal government's climate change efforts. This approach seems motivated by disagreements with the federal government over what targets and means should be used to combat climate change, as well as differences of opinion over the economic opportunities that may come with participation in North American regional carbon markets. This bulletin outlines some of the latest developments.