Ontario will join California and Quebec in a cap and trade system to reduce greenhouse gas emissions
Kathleen Wynne, the Premier of Ontario, announced that the province will be joining Quebec and California as part of a cap and trade system to reduce greenhouse gas emissions. Ontario will be joining as a participating member of the Western Climate Initiative, which also includes California, Oregon, Washington, British Columbia, Manitoba and Quebec, among others.
No dollar amount has been attached to the deal, but BNN estimates the number will reach $1 to $2 billion a year. By linking with Quebec and California, this announcement will create a carbon market of 61 million people and cover more than 60% of Canada’s population. The announcement did not specify what the ceiling for emissions would be for each sector of the economy.
Wynne said the government plans to “reinvest the money raised through cap and trade in a transparent way back into projects that reduce greenhouse gas pollution and help businesses remain competitive.” Background documents from the University of California Berkeley estimated that cap and trade “will add $0.026 per liter to the price of gasoline.” This price increase is expected to be offset by lower fuel usage due to improved fuel efficiency and other measures to reduce fuel use.
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