California, Ontario and Québec have signed an agreement to link their carbon markets.
The deal officially links joins individual cap-and-trade programmes, creating “an expanded and dynamic carbon market, which will drive down greenhouse gas emissions”, according to California Governor Edmund G. Brown Jr.
Ontario will formally enter the Québec-California carbon market on 1st January 2018, allowing the three governments to hold joint auctions of greenhouse emissions allowances.
It will be the second largest collective carbon market after the EU.
Kathleen Wynne, Ontario Premier said: “Climate change is a global problem that requires global solutions. Now more than ever, we need to work together with our partners at home and around the world to show how our collaboration can lead to results in this international fight.”
Last month the EU and Switzerland also announced plans to link their carbon markets.