California finalized a plan Friday to link its fledgling cap-and-trade carbon market with a similar market starting up in Quebec.
State officials said the move will strengthen the market, which aims to curtail greenhouse gas emissions.
The 6-month-old market is the centerpiece of AB 32, the state's answer to global warming. California originally hoped it would operate the market in conjunction with multiple Western states, but Quebec is the only other jurisdiction to sign on.
With linkage, California companies can now buy carbon credits from Quebec and vice versa. The agreement takes effect Jan. 1 and "broadens the environmental impact" of the market, said Air Resources Board chairwoman Mary Nichols in a press release.