On Monday April 13th, the Canadian province of Ontario will join Quebec and participate in a cap-and-trade scheme designed to use market forces to reduce climate change causing greenhouse gas emissions. Ontario’s involvement will put a price on carbon emissions that exceed current government-set limits. Under the cap-and-trade deal companies can either limit their greenhouse gas emissions or buy credits from companies who have come in under the cap.
Ontario will join Quebec’s cap-and-trade system which functions in consort with California. If Ontario signs an agreement with California, the three jurisdictions could trade emissions.
Quebec implemented its cap-and-trade system in January 2015 and as of February the province had already auctioned off $190 million worth of carbon credits.
Ontario premiere Kathleen Wynne is expected to make the announcement this morning and they go to Quebec where she will sign the deal with Quebec Premiere Philippe Couillard. The move follows public consultations in Ontario on how to reduce carbon emissions in the province.
The deal between Quebec and Ontario takes place the day before Canadian Premieres and territorial leaders will convene for a summit in Quebec city.