Good news that the infrastructure for trading carbon emissions is nearly reality in Canada, with the Montreal Exchange planning to open the doors (well, flick on the computers) May 30 this year. The head of the exchange, Luc Bertrand, has previously been lukewarm on the viability of such a market, given the weak federal regulation of emissions, but apparently he’s changed his mind:
The Government of Canada has provided greater regulatory certainty regarding intensity-based emissions reduction targets and the definition of a single compliance standard for tradable credits,” added Mr. Bertrand. “This will enable emitters to more accurately forecast their individual intensity-based reduction targets and exposures.”
“Clear regulations are always welcome news for buyers, sellers andmarket operators. Our aim is to offer a market based solution that will optimize the policy guidelines set by the federal Government and support the reduction of carbon emissions in a cost effective manner.”
My guess is, they’re expecting tougher targets eventually and want to be up and running well in advance. It’ll be very, very interesting to see what price the market puts on emissions credits, given the government’s regulations.