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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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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.