Under the Greenhouse Gas Reduction (Cap and Trade) Act announced yesterday, large emitters
will face caps on their emissions. In what may become a continental carbon market, large emitters will be able to buy and sell emissions allowances or buy offset units. The concept is to make it financially beneficial to cut greenhouse gases. British Columbia is the first province in Canada and the first jurisdiction in North America to implement a cap and trade system. This follows British Columbia’s pioneering carbon tax that was passed earlier this year.

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