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Law Times • November 19, 2012 Ontario lags as Quebec, California move ahead on climate deal FOCUS BY MARG. BRUINEMAN For Law Times and work on a regional reduction program is seeing some dramatic action this winter. It' A some dramatic inaction. The Western Climate Initia- n agreement between several provinces and states to reduce green- house gas emissions s also seeing tive was an effort to attack cli- mate change on a number of fronts through an agreement between seven states and four provinces. The goal was to cut emissions by 15 per cent from 2005 levels by 2020 through a cap-and-trade program. California and Quebec are speeding ahead with plans and an agreement with a target date of Jan. 1. But just where Ontario, Manitoba, British Columbia, and the other U.S. states stand isn't as clear. The idea of the regional effort allows for the release of one tonne of emissions. Companies get permits through the auctions as well as free allocations. They then trade them in to cover their emissions but they can also sell or trade permits under a shrink- ing cap. But there are some de- lays in California' eral lawsuits, for example, seek to challenge the eight-per-cent offsets. At the same time, there are challenges related to electric- ity generation regulations. California is waiting for a re- then it's got four provinces." s process. Sev- isn't a member of the Western Climate Initiative, as an example of a province with a system he thinks is effective. That province has essentially tied its emissions program to its gross domestic product and is focusing on the big emitters. Some movement at the fed- He points to Alberta, which eral level is also encouraging, says Taylor. But he' port before it can go ahead with its Quebec agreement. Califor- nia has also announced its intent to link with Australia, which, in turn, is connected to efforts in the European Union. "It' pan-Asian link with Quebec," says DeMarco. Meanwhile, DeMarco says the was to attack the climate issue head on. Through a co-operative approach, the thinking was that a group of provinces and states could effect change together more efficiently than if worked individually. In Canada, Quebec is mov- they ing aggressively in that direc- tion. The most populous state of California is as well. The two jurisdictions have developed an agreement to link their cap-and- trade programs for greenhouse gas emissions. The California-Quebec link would allow companies to use carbon permits issued as part of Quebec' gram to comply with California's s cap-and-trade pro- greenhouse gas regulations. The link would see larger volumes of emissions reductions and would strengthen the market for carbon permits, proponents say. "Two jurisdictions are mov- ing forward with some haste and paste, partner at Norton Rose Canada LLP with significant experience in the emissions trading area. California' " says Elisabeth DeMarco, a into effect Jan. 1 and was set to have its first auction of permits on Nov. 14. A carbon permit s legislation comes s really started to look like a other provinces — Ontario, Brit- ish Columbia, and Manitoba — "are in the proceeding-carefully" mode. As for the other states — New Mexico, Arizona, Washing- ton, Oregon, Montana, and Utah — there appears to be little action so far. DeMarco is involved in her firm's electricity subgroup and spends anywhere from 40 to 80 per cent of her time on related issues. "This file is like a pendulum," rapidly in the last decade. It has been 10 years to date since we started . . . using emission reduc- tions as a tool. of Quebec means little action on the file for Gray Taylor. But as co- leader of Bennett Jones LLP' mate change and emission trad- ing practice, Taylor keeps a finger on the pulse of activity in the envi- ronmental sphere in Canada. Ideally, he says, Canada and s cli- ORDER # 804528 $120 Hardcover approx. 425 pages March 2012 978-0-88804-528-7 the United States would have their own systems. Although there was some initial movement in that direction, neither country went ahead. Instead, some states and provinces pursued the Western Climate Initiative on their own. "It actually looked like it could be a really useful tool," says Taylor. The lack of movement outside " Besides Quebec, the other participating provinces 'are in the proceeding-carefully' mode, says Elisabeth DeMarco. sary stuff. You actually have to do something. From my perspective, you've got one state leſt in and "This is all absolutely neces- io's efforts. "One of the things you " says Taylor. "Ontario to- s still in s critical of Ontar- can see is Ontario is really doing nothing, tally should be part of it." Ontario maintains it' the program, although it has in- dicated it' and acting in its involvement in the Western Climate Initiative. "We're an active participant as Canadian co- s taking a strategic pause chair," says Ministry of the En- vironment spokeswoman Kate Jordan. "We participated in the collaboration. Last year, we did indicate that although we're still moving ahead . . . we have to first have a balanced approach that will be effective. province continues to move for- ward with an emissions program. Work has begun on greenhouse gas reporting requirements for companies, something the gov- ernment considers an important first According to Jordan, the " have submitted emissions re- ports for 2011. In addition to eliminating its step. About 130 facilities coal-fired plants as an electricity source, the province has also in- troduced a feed-in tariff system to encourage the generation of clean energy. LT SPEARHEADING RESPONSIBLE ENERGY POLICY DEVELOPMENT NEW PUBLICATION CANADIAN GREEN ENERGY LAW AND POLICY FRED D. CASS she says. 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