California tables new cap-and-trade plan that jumps ahead of Quebec and Ontario

California jumps over Quebec with carbon plan

MONTREAL — California’s Senate proposed a new and more ambitious carbon credit cap-and-trade system this week, challenging Ontario and Quebec to do the same or get left behind.

Quebec and California have a linked carbon credit market that expires at the end of 2020. Ontario held its first carbon credit auction in March and intends to link to the California-Quebec system in 2018.

Both provinces, however, will need to adapt to California’s proposed reforms if they want to continue working with the state after 2020, said Jessica Green, professor of environmental studies at New York University.

“It’s a big change,” she said Wednesday in an interview about California’s new bill. “It’s a decisive statement that’s saying: ‘If you want to play with us, you have to play by our rules and those rules are getting stronger all the time.'”

The new California plan provides for an increase in the minimum price for one ton of carbon dioxide or equivalent greenhouse gas to US$20 and creates a ceiling of US$30. Every year the minimum price would increase by US$5 and the ceiling by US$10.

The current market price for a ton of carbon equivalent is US$13.50.

Carbon offsets would no longer be permitted in the new bill and companies that emit greenhouse gases would need to purchase new credits every year.

Moreover, the new plan eliminates the possibility of acquiring free carbon credits.

A cap-and-trade system for carbon credits allows companies to purchase the right to emit greenhouse gasses.

In Quebec, all businesses that emit 25,000 metric tons a year of carbon dioxide or its equivalent have to comply with the system, except fossil fuel companies, which are only scheduled to comply starting in 2018.

Quebec currently holds joint auctions with California every quarter and the province has delegated the administration of them to California’s regulator.

“It’s an identical system right now,” said Danny Cullenward, an energy economist and lawyer who advised the California Senate on the bill.

He said Quebec and Ontario will still be allowed to link to California’s new plan, but the provinces will have to match the minimum carbon credit price floor.

“If somebody wants to link to this new market they have to have a comparable minimum carbon price,” he said in an interview. “It would be a terrible idea if we set up an ambitious climate plan and we linked to a partner that was not all that ambitious.”

Gary Wheeler, spokesman for the Ontario Ministry of the Environment and Climate Change, said in an email that the proposal is one of several early drafts put forward by different California state senators.

“None have gone through the legislative process and there are significant discussions that need to happen before anything is finalized,” Wheeler said.

He said Ontario is committed to partnering with Quebec and California “and we will all be working together to determine the most responsible, effective way to keep lowering emissions in the next period after 2020.”

Representatives from the Quebec government did not respond to a request for comment Thursday.

If passed by California legislators, the new system would begin in January 2021, but there is no guarantee it will be adopted, Cullenward said.

“It’s too soon to tell, and (passing the bill) will be a significant lift, but there are positive signs,” he said.

Giuseppe Valiante, The Canadian Press

Just Posted

Curling Club renovations – “if you take the roof off, you have to fix it” says Mayor

McCarrick said the districts only other option was “to take the building down.”

North Island schools struggling with lack of TTOCs

“We literally have days where positions are not being filled.”

$100,000 worth of helicopter parts stolen in Port Hardy

Anyone with information is asked to call Port Hardy RCMP at (250)-949-6335.

High winds cancel slew of BC Ferries sailings

Travel to and from Victoria and Vancouver as well as Northern Gulf Islands affected

10 tonnes of plastic cleared from North Coast beaches

Living Oceans Society spent three days sorting the marine debris

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

Capitals crunch Sparta in home opener

The game was a hard-hitting affair right from the drop of the puck.

Wet weather expected for much of coastal B.C.

The Weather Network is calling for up to 200mm of rain to fall in some areas of the South Coast and Vancouver Island

B.C. reporter reflects on covering Charles Manson

Charles Manson, leader of a murderous cult, died on Sunday at 83

ICBC overbilling for crash repairs not the problem, dealers say

Collision repair shops reject union claim of inflated costs

B.C. groups to address child sex abuse in sports

viaSport is organizing a full day of education in association with Canadian Centre for Child Protection and the Coaching Association of Canada.

Report sets exercise guidelines for young kids, including ‘tummy time’ for babies

Kids aged one to four should get at least three hours of physical activity throughout the day

Stampeders return to Grey Cup with 32-28 win over Edmonton Eskimos

The Stampeders will face the Toronto Argonauts next Sunday in Ottawa for the title

INTERACTIVE MAP: Follow the 2017 Tour de Rock

Follow the Tour de Rock, as they pedal more than 1,000 kilometres fundraising to combat paediatric cancer

Most Read