Ontario, Quebec and California
Many people are unaware of the fact that cap-and-trade programs mean that the biggest polluters pay the most for pollution, rather than all taxpayers paying more than our fair share. One of the largest cap and trade markets in the world was confirmed during 2017 between Ontario, Quebec and California. This means polluting firms in their jurisdictions are permitted to buy green credits for the right to more slowly phase in cleaner systems and accommodate the nuances of capital investment planning.
The revenue is used by these governments to support faster greening initiatives undertaken by other organizations. This is a progressive market intervention that helps these regions to motivate clean energy use and develop green skills, green jobs and a green economy. Ontario, Quebec and California have sometimes been better than neighbouring states and provinces at economic performance. Could it be that they will continue to perform well in a new clean energy economy? Perhaps, but many other regions are also now moving in similar directions. Polluters-pay. It makes sense because it’s fair.