ARKO DATTA
Canada's three largest provinces are forging ahead on a cap-and-trade system to stem global warming emissions, a move made just after a similar plan was abandoned by the U.S. Senate.
The system, set to start in January, 2012, would cap emissions on large industrial facilities in Ontario, Quebec and British Columbia in Canada, and in California and New Mexico in the United States.
If implemented, the plan will likely leave the members' policy at odds with most of the U.S. and the remaining seven provinces in Canada.
The five jurisdictions making the push are part of the Western Climate Initiative, formed in 2007 and led by California. On Tuesday, the initiative provided details of its centrepiece plan in a lengthy outline of the cap-and-trade program. Other group members, such as Utah and Arizona, haven't committed to the system that some critics call too costly.
Even the early backers of the idea are uncertain. Last month, Quebec Premier Jean Charest and Ontario Premier Dalton McGuinty wouldn't commit to the 2012 date. B.C. hasn't made a final decision and wants to make sure it's not alone if it does join.
"Each jurisdiction is continuously weighing the pros and cons on moving ahead," said Tim Lesiuk, a B.C. environment department official and the province's chief negotiator with the Western Climate Initiative.
The biggest blow for cap-and-trade came last Thursday, when the Democrats in the Senate abandoned a bill that included the measure because of intransigent Republican opposition.
The Conservative federal government has long resisted the cap-and-trade idea, suggesting it would only move ahead if the U.S. did. In May, Prime Minister Stephen Harper said it would be "difficult if not impossible" to start a system without the U.S.
In the midst of a scorching summer in much of North America, the Senate decision could mark the death knell for cap-and-trade nationally in the U.S. for several years.
The Democrat-controlled House of Representatives passed a cap-and-trade bill last year, but according to forecasts, Republicans are expected to make gains in the House in the November elections - and possibly take majority control. Gains in the Senate are also predicted, though the Democrats are expected to maintain their majority.
Cap-and-trade is designed to reduce global warming emissions by limiting gases industry can pump out. But to provide flexibility and minimize economic costs, businesses have the option to buy credits to cover situations where they exceed caps.