The California Air Resources Board (ARB) and the Government of Quebec yesterday announced a new agreement that will serve as the blueprint for integrating their cap and trade programs. The agreement is another step to link each program that was begun more than five years ago. It will allow carbon allowances and offset credits to be exchanged between participants in the two jurisdictions’ programs.
The linked programs may serve as a blueprint for other states and provinces to use in the future. For example, the USEPA recently announced new limits on greenhouse gas emissions from power plants that could lead to state-by-state caps and emission offset trades with other programs. Even industries in the Bakersfield and San Joaquin Valley may be able to utilize such trades for their operations.
Published in both French and English, the agreement was signed for California by ARB Chairman Mary D. Nichols. Signing for Quebec were the Minister of International Relations, La Francophonie and External Trade, Jean-François Lisée and the Minister of Sustainable Development, Environment,
Wildlife and Parks, Yves-François Blanchet.
“For more than five years, California and Quebec, along with other states of the United States and provinces of Canada, have worked together to address the risks of man-made climate change,” said Nichols. “We have created and are now implementing the most advanced and comprehensive programs to reduce the pollution that threatens our global environment.”
"The collaboration between Quebec and California in the development of a carbon market on a continental scale is an excellent example of North American regional cooperation that is beneficial to all partners, both from an economic and an environmental perspective. As leaders in the fight against
climate change, California and Quebec advantageously position their businesses involved in the research and development of new clean technologies on the world stage. We seek nothing less than
to become an international reference on this issue," said Minister Lisée.
“Through this agreement, we continue our positive working relationship and the process of integrating our programs,” said Secretary of the California Environmental Protection Agency Matthew Rodriquez. “In doing so, we enhance the benefits to each of our peoples and our history of effective cooperation to achieve a shared goal will provide a model for others to emulate, not only in North America, but throughout the world.”
"The sale of emission allowances will generate at least $2.5 billion in revenue by 2020 in Quebec. These funds will be fully reinvested in initiatives to fight climate change, including facilitating the conversion to renewable energy, promoting energy efficiency, improving industrial processes, and preparing Quebec society to adapt to the impacts of climate change. The electrification of transportation is another major project on which our government will labor over the coming months," said Minister Blanchet.