By Gordon Hamilton, Vancouver Sun, November 18, 2011
B.C.'s future in ambitious greenhouse-gas deal unclear
Six American states have formally withdrawn from the Western Climate Initiative, leaving only California and four Canadian provinces - including B.C. - involved in developing a greenhouse gas emissions trading program.
And even B.C. has not committed itself to joining WCI's policy keystone - a cap-and trade system that would limit the amount of greenhouse gas emissions companies could release, and then require them to purchase carbon credits for any emissions over that limit. Those credits would be purchased from companies that have earned credits by reducing their own emissions.
"We haven't made a final decision at this point," B.C. Environment Minister Terry Lake said in an interview Thursday, referring to cap-and-trade. "What we want to do is leave our options open, we want to make sure we don't rule out any options for B.C."
Lake said the six U.S. states - New Mexico, Arizona, Washington, Oregon, Montana and Utah - had signalled their intentions some time ago, so their decision to leave formally comes as no surprise. Economic issues and jobs have pushed climate initiatives to the back burner, along with the election of Republican governors in some of the states, he said.
B.C. has no intention of leaving WCI, even though the province has yet to commit to cap and-trade, he said.
"We are following what they (WCI) are doing very closely," he said.
"We are still working with our partners in WCI to make sure we have options that work for British Columbia."
Lake said the carbon tax model is working well in B.C. If the province moves to cap-and trade it must be sure it will not affect competitiveness but will also aid in reaching greenhouse gas reduction targets.
Mark Jaccard, a professor in resource and environmental management at Simon Fraser University, said the news comes as no surprise.
"Several of us have been saying for some time that a broad based cap-and-trade would not happen in the near future among western U.S states," Jaccard said.
"That has been obvious from political developments at the state level.
"Fortunately, California is still trying to move ahead, but it would be folly for B.C. to join California in the initial launch of cap-and-trade when the most likely outcome is to undermine our carbon tax. B.C. should encourage California, but stay on the sidelines while we see what prices develop for carbon dioxide in this cap-and-trade system."
The six U.S. states that quit WCI have joined a new bloc of states, the North America 2050 Initiative, which is an effort to reduce greenhouse gas emissions through a range of climate change and clean energy strategies.
The WCI website states that the initiative's members will continue to work with the six states through the North America 2050 Initiative.
B.C. has already taken steps to create a fledgling carbon market through the Pacific Carbon Trust, which buys carbon credits from industry and sells them to schools and hospitals.
The province has stipulated that public institutions must be carbon neutral, forcing the institutions to reduce their green house gas emissions by buying $18.2 million in carbon offsets last year.
Although the province's stand on WCI remains uncertain, the province is still developing a strategy to be a part of cap-antrade in the event that it opts for that system.
© Copyright (c) The Vancouver Sun
