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

Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kelowna residents got creative in celebrating Halloween amid COVID-19, taking a haunted house on the road for nearby residents to enjoy. (Phil McLachlan - Capital News)
Gallery: Kelowna residents take haunted house on the road

Grenfell Road Haunted House didn’t open this year, instead found creative way to celebrate the season

(Photo courtesy of David Ogilvie)
Update: No injuries after van fire in West Kelowna

Two fire engines raced to the scene, on Dobbin Road near Scotiabank

Hiawatha RV Park will be demolished starting in February, to make room for a new condo development. Residents have four months to leave. (Phil McLachlan - Capital News)
‘I don’t know what to do’; Another Hiawatha resident pleas for eviction extension

Hiawatha RV Park residents have four months to leave the neighbourhood

Kalamalka Lake which connects Lake Country to Vernon and feeds into Okanagan Lake. (File photo)
Response sought to Okanagan Lake level management shortfalls

Water board adds support to Peachland council’s call to change how lake level is managed

In record numbers, Central Okanagan parents were turning to remote learning for their kids this school year. (File photo)
COVID-19 fuels Central Okanagan remote learning expansion

Enrolment for K-9 in eSchool program climbs from 40-50 to 700

Physical distancing signs are a common sight in B.C. stores and businesses. THE CANADIAN PRESS
272 more COVID-19 cases for B.C., outbreak at oil sands project

Three new health care outbreaks, three declared over

A rock slide is blocking one lane off the Trans-Canada Highway west of Sicamous. (Cindy Schedlosky/Facebook)
Rock slide near Sicamous cleared from highway

Single-lane alternating traffic had been in effect.

Vernon-North Okanagan police responded to a property dispute in the 11000 block of Westside Road Thursday, Oct. 29, 2020. (Google Maps)
Property dispute leads to police presence near Vernon

An altercation between two individuals prompted a police response to the Westside Road area

Titled “Dutch Underground - Laren 1944,” Mineke Spencer’s parents Johanna and Albert Jan Koeslag (centre) sit with their 13 children, who ranged in age from seven (Minike) to 28. Mineke is the little girl with the big white bow in the front, left, beside sister Marie, also with a white bow. (Contributed)
Fearless allies: Shuswap woman reflects on childhood in Dutch Resistance

Mineke Spencer was three-years-old when Germany invaded her home in the Netherlands

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie “The Name of the Rose” at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

Oscar-winner was knighted by Queen Elizabeth II in 2000

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Several police vehicles were seen at the Sagmoen farm on Salmon River Road in Silver Creek on Thursday night, Oct. 29, 2020. (Martha Wickett-Salmon Arm Observer)
UPDATE: One person arrested, released following police presence at Sagmoen farm

RCMP were at Silver Creek property where remains of Vernon woman were found in 2017

Most Read