Showing posts with label canadian carbon credits. Show all posts
Showing posts with label canadian carbon credits. Show all posts
Thursday, June 13, 2013
Brown wants California's carbon market to link with Quebec's
Brown wants California's carbon market to link with Quebec's
By Dale Kasler
dkasler@sacbee.com
Published: Wednesday, Apr. 10, 2013 - 12:00 am | Page 6B
Starting next January, California's cap-and-trade carbon market probably won't be operating on its own anymore.
Gov. Jerry Brown on Monday gave state regulators the green light to link California's carbon market with a similar market in the Canadian province of Quebec. The California Air Resources Board is expected to vote April 19 on whether to link with Quebec.
If the two become linked, California companies could buy carbon credits from Quebec and vice versa. "The allowances will be completely fungible," said David Clegern, spokesman for the Air Resources Board.
In addition, "this obviously is a way to have an impact (on climate change) beyond what happens in California," he said.
California regulators had hoped that their carbon market would be part of a Western states consortium. But while California's market debuted last fall, no other state has committed to running a market yet; Quebec is the only Canadian province to join in.
The market is the centerpiece of AB 32, the state's 7-year-old global warming law.
Several hundred big industrial polluters are required to reduce their carbon emissions below a certain level – the "cap." If they don't, they have to buy emissions allowances to compensate.
The total cap shrinks slightly each year, which is supposed to result in a gradual reduction in emissions.
If the two become linked, California companies could buy carbon credits from Quebec and vice versa. "The allowances will be completely fungible," said David Clegern, spokesman for the Air Resources Board.
In addition, "this obviously is a way to have an impact (on climate change) beyond what happens in California," he said.
California regulators had hoped that their carbon market would be part of a Western states consortium. But while California's market debuted last fall, no other state has committed to running a market yet; Quebec is the only Canadian province to join in.
The market is the centerpiece of AB 32, the state's 7-year-old global warming law.
Several hundred big industrial polluters are required to reduce their carbon emissions below a certain level – the "cap." If they don't, they have to buy emissions allowances to compensate.
The total cap shrinks slightly each year, which is supposed to result in a gradual reduction in emissions.
Carbon Markey with Quebec
carbon market with Quebec
- Stikeman Elliott LLP
- Canada, USA
- April 17 2013
Last week, California Governor Jerry Brown approved the link of the state’s carbon market with Quebec. The next step is for California’s Air Resources Board to consider changes to its cap-and-trade program that will allow it to link with Quebec. The Board is scheduled to meet on April 19th. A spokesman has stated that the Board intends to continue to work on all necessary additional steps to ensure California’s efforts to link with Quebec are successful.
If approved by the Board, California and Quebec intend to implement the link between their carbon markets on January 1, 2014. Once linked, they will hold joint auctions of carbon emission allowances which can be used for compliance in either jurisdiction. In the interim, the two jurisdictions will test their auction platforms and trading systems for compatibility.
Both governments are hopeful that linking the carbon markets will improve liquidity for carbon allowances by increasing the pool of permits and companies trading them, as well as encourage expanded investments in low-carbon technologies.
If approved by the Board, California and Quebec intend to implement the link between their carbon markets on January 1, 2014. Once linked, they will hold joint auctions of carbon emission allowances which can be used for compliance in either jurisdiction. In the interim, the two jurisdictions will test their auction platforms and trading systems for compatibility.
Both governments are hopeful that linking the carbon markets will improve liquidity for carbon allowances by increasing the pool of permits and companies trading them, as well as encourage expanded investments in low-carbon technologies.
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