In a significant milestone for “cap and trade” carbon markets, California and Quebec have announced that their first combined auction of greenhouse gas emission credits will be held Nov. 19.
Officials said the joint auction will strengthen efforts in both jurisdictions to rein in carbon emissions. Credits purchased in the auction can be used by industrial firms in either California or Quebec.
“This joint auction is a logical next step in our efforts to develop a cost-effective, inter-governmental model for reducing greenhouse gases,” said Matt Rodriquez, secretary of CalEPA, in a prepared statement.
California has been auctioning carbon emission credits since November 2012, Quebec since last December. Under the rules of cap and trade, hundreds of major industrial firms must buy credits, either from the government-run auctions or on the open market, in order to emit carbon into the atmosphere. The total amount of available credits - the cap - decreases slightly each year.