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
