Reporting Regulation – Greenhouse Gas Reduction
(Cap and Trade) Act
Context for the Regulation – the Western Climate Initiative and British Columbia’s Cap and Trade Program
British Columbia is a Partner jurisdiction in the Western Climate Initiative, which is presently developing a regional cap and trade program. The program is designed to harnesses the power of market mechanisms to reduce greenhouse gas emissions, providing flexibility to companies with different marginal abatement costs and reducing the overall cost of achieving provincial greenhouse gas reduction targets.
A cap and trade (or emission trading) system sets an absolute limit on the quantity of greenhouse gas emissions that a jurisdiction can be accountable for on an annual basis. A cap and trade system enables the trading of emissions allowances between emitters who can meet the cap efficiently and those face more of a challenge in reducing emissions.
The Reporting Regulation is one component of British Columbia’s cap and trade program. It is anticipated that additional regulations for other components of the program (such as allowance trading and offsets) will be developed in the near future.