Ontario And Québec Collaborate To Reduce Carbon Emissions

Yesterday, Ontario announced that it will impose a cap-and-trade system under the Western Climate Initiative, which it joined in 2008. The "cap" will set a maximum limit on the amount of greenhouse gas emissions that industry can produce in Ontario. Over time, this emissions cap will be lowered, reducing emissions. The "trade" will create a market for carbon credits distributed or auctioned by the government. Companies that do not use all their credits can sell to emitters that exceed the cap. Over the next six months, the public will be consulted on the details for the "made-in-Ontario" cap-and-trade system.

Ontario and Québec also announced yesterday a statement of intent to reduce carbon emissions through a linked cap-and-trade system. Québec's cap-and-trade system took effect in 2013 and was linked with California's system in 2014. Québec's system currently applies to large electricity generators, industrial facilities and distributors of transportation and