The Canwest News Service reports that, “The federal government announced plans (by releasing two draft documents) Wednesday for a national carbon market…”
WHAT IS A CARBON MARKET?
“Carbon markets provide a way of buying and selling carbon credits that occur when a company cuts carbon emissions more than required by a government cap.”
Companies that don’t meet the emissions targets can buy credits from ‘creditworthy’ projects or from companies with a surplus instead of reducing their emissions.
“(According to Prentice) examples of creditworthy projects are methane capture and destruction from landfill gas, and the creation of new forests or certain types of agricultural soil management.”
“Alberta Environment Minister Rob Renner said Wednesday the province is comfortable with Ottawa’s carbon-trading proposal… Still, Renner stressed the province will continue vigorously lobbying for a technology fund to complement a carbon trading system.”
MARKET TO ESTABLISH THE PRICE FOR CARBON
“Environment Minister Jim Prentice said while the market would ‘be establishing a price for carbon in Canada’ for the first time, it would be traders, not the government, who will determine what that price eventually is.”
JANUARY 2011 START DATE
“Prentice said buying and selling carbon credits could begin as early as this fall, but the market probably won’t begin operating in a big way until Jan. 1, 2011. That’s when Canada’s large industrial emitters will have to start complying gradually with mandatory cuts in carbon emissions.”
PRENTICE TO SEEK HARMONIZATION AGREEMENT WITH THE PROVINCES
“Alberta already has a carbon market, and Prentice said the federal government will seek harmonization agreements with provinces.”
HARMONIZATION WITH THE US?
“Eventually (Prentice) foresees Canadians trading with the United States and in carbon markets abroad.”
60 DAYS FOR PUBLIC COMMENT
“The government is providing 60 days for public comment on detailed proposals for an ‘offset system for greenhouse gases.'”
The Canwest article is at http://www2.canada.com/calgaryherald/iphone/business/calgary/story.html?id=1681981.