Business & Real Estate

Canada’s Ontario province joins California carbon market

California’s market-oriented effort to curb greenhouse gas emissions got another partner Monday.

The Canadian province of Ontario announced that it will join the “cap-and-trade” market launched by California in late 2012. The program requires affected industries to purchase emissions credits at market prices; it reduces emissions by gradually reducing the volume of available credits each year.

Ontario becomes the second Canadian province to partner with California on the effort. Quebec joined last year. California and Quebec now run joint auctions; an emissions credit purchased in California can be used by a company in Quebec, and vice versa.

California has long urged other states to join its program, arguing that the program becomes a more effective tool to fight climate change if more jurisdictions get involved.

“This is a bold move from the province of Ontario – and the challenge we face demands further action from other states and provinces around the world,” said Gov. Jerry Brown in a prepared statement.

Ontario officials will release details later this year on their entry into the market.

Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.