Ontario to Link Cap and Trade System with Quebec and California


Today, Ontario entered into an agreement (the Agreement, attached) to formally link its carbon market with markets in Quebec and California effective January 1, 2018. Collectively, the new Ontario, Quebec and California carbon market will be larger than any other carbon market outside the European Union. The Agreement will allow the governments of Ontario, Quebec and California (the Parties) to hold joint auction of greenhouse gas emission allowances and to harmonize regulations and reporting requirements.


The Agreement contains sections on regulatory harmonization, offset protocols, mutual recognition and trading of compliance instruments, accounting mechanisms and treatment of emission reductions, joint auctions, and a common program registry and auction platform. It requires the Parties to create a Consultation Committee that will monitor the implementation of all measures required for effective harmonization and integration of the Parties’ greenhouse gas emission reduction programs, recommend measures to improve the harmonization and integration of these programs, and address any other issues as requested by the Parties. The Agreement also commits the Parties to continue coordinating administrative and technical support through WCI, Inc.


Ontario’s news release is available here. Please contact Lisa DeMarco if you have any questions.

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