On June 29, 2011, the California Air Resource Board announced that it is
delaying the start of the state's cap and trade program until
2013, a year later than was originally envisioned. CARB will
initiate the cap and trade program in 2012 but use that year to
test various aspects of the program; no greenhouse gas (GHG)
emissions reductions will be required until 2013. However, the 2014
reduction target of 6% below business as usual and the goal of
reducing emissions to 1990 levels by 2020 are unchanged.
In the announcement, CARB
Chair Mary Nichols said that the delay is necessary because it is
so critical that the cap and trade regime be a success. CARB will
be initiating all elements of the cap and trade program in 2012,
including establishing market oversight mechanisms, conducting
trainings, holding auctions and developing linkages with partners
in the Western Climate Initiative (WCI), to ensure all aspects of
the program operate as intended.
In light of CARB's announcement, market watchers consider it
reasonable to expect British Columbia and Quebec, the Canadian WCI
members on track to initiate cap and trade programs in 2012, to
delay industry compliance with GHG emissions reduction targets
until 2013 to be in step with California. The readiness of Ontario
and Manitoba, the other two Canadian WCI members, to participate in
the WCI in 2012 has been in doubt for the past few months. While
provincial elections in Ontario set for October have caused the
incumbent Liberal government to hold off on pushing ahead with the
program, Manitoba expects to join the WCI only after the program
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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