Premier Kathleen Wynne Officially Announces Ontario Cap-And-Trade Regime

As anticipated, Ontario Premier Kathleen Wynne formally announced plans Monday morning to join Quebec and California in building a cap-and-trade system for greenhouse gas emissions. Calling climate change "one of the greatest challenges mankind has faced", Ontario will soon impose sector-specific limits on emissions. Once the details are finalized over the next six months, the Province will sell or auction permits to companies that represent the right to emit a stated volume of pollution. Companies that pollute more than their limit must purchase permits from other companies that plan to emit less. As such, proponents of cap-and-trade argue that market forces incentivize businesses to adopt cleaner and more efficient practices. "The action we take today will help secure a healthier environment, a more competitive economy and a better future for our children and grandchildren," Wynne said.