GLOBE-Net, October 25, 2011.The board of the California Air Resources Board took the final step towards implementing the second largest cap and trade system, in the seventh largest economy in the world with unanimous approval of the final draft of the plan.

While the start date has been delayed by one year to 2013, this final stage in the implementation of Bill AB32 represents a major landmark in North American climate policy.

ARB chair Mary Nichols linked the decision to broader concerns in the US about foreign security issues commenting 'For over half a century, every American president has been calling for America to move away from our dependence of foreign oil and become energy independent. The reason we did not succeed in addressing our addiction to petroleum is because we did not have the right set of policy tools. Now we do."

Within Canada, Quebec is now moving most rapidly towards implementing a system that will allow the province to participate in the broader Western Climate Initiative.

"This California announcement, a strong commitment to a clean-energy economy, is a further example of a government taking a leadership role on this important environmental issue. 

Earlier this year we saw announcements from Australia and Quebec and recent U.S. EPA pronouncements on carbon regulation, all pointing to increased momentum on this issue globally." said Glenn Kelly, President and Chief Executive Officer of Quebec-based CO₂ Solution Inc.

With the Liberals maintaining control of Ontario in the most recent election, and the NDP holding significant influence there, it appears that province will also hold the course.

BC Premier Christy Clark affirmed her commitment to climate policy in BC and to work with WCI partners, although the government has been silent on this issue since that time.

Currently, BC is undergoing a detailed economic analysis to understand the effects on sectors covered by cap and trade. This will help inform a decision on whether or not to proceed on California's path. Current market signals suggest that compliance costs will be lower under cap and trade than under the current carbon tax regime.

Some commentators have expressed concern that if BC were to delay implementation or withdraw  from the WCI the province would be at risk and subject to penalties on  goods and energy services crossing the Canada-US border.

Recent announcements by WCI Partners should encourage the province to move forwards with the final enabling legislation required to ensure BC participates in cap and trade.

China has made parallel commitments to establish strong clear climate policies in its latest five-year plan and through statements by Chinese climate scientists.

Australia has also signaled a strong commitment to climate policy through a carbon tax. BC needs to clarify and assert its role as a leader among the major trading partners around the Pacific Rim or risks loosing a first mover advantage and being left behind.

Policy experts and world thought-leaders will converge on this subject at GLOBE 2012, taking place March 14-16, 2012 in Vancouver, Canada, to try and provide some clarity on the successes and failures of current and proposed climate policy initiatives and cap-and-trade frameworks.

Get More information on GLOBE 2012 here

PICS News Scan - 25 October 2011 - Produced by ISIS, Sauder School of Business, UBC