Montreal exchange for emissions trading opens

The Montreal Climate Exchange began trading carbon emission credits on Friday, less than two years before many Canadian industries have to start cutting their greenhouse gas emissions.

The exchange will allow industries that do not yet have the technology to begin cutting emissions to buy carbon credits so they can meet government-mandated targets.

Companies that can meet emissions targets will get credits, which they will be able to trade at market value on this new exchange.

By 2010, industries will have to start reducing their greenhouse gas emissions, and they will have a decade to reduce emissions by 20 per cent.

Luc Bertrand, president and CEO of the Montreal Exchange and chairman of the MCeX, said that MCeX is the first of what will soon be many environmental markets across the country.

At a press conference, Quebec Premier Jean Charest said that trading carbon credits makes sense given governments are starting to legislate when and by how much industries must cut their carbon emissions.

"I think we're a year and a half or two years away because the main factor in all this will be the election of a new American president. It's that simple," Charest said.

"And all three candidates have all made a commitment towards capping trade and legislating greenhouse gas emissions. So that's where the world is going."

The Montreal Climate Exchange (MCeX) is the first regulated environmental trading market in Canada. It is a joint venture of the Montreal Exchange (MX) and the Chicago Climate Exchange (CCX), which was the world's first greenhouse gas emissions reduction and trading system.

Comments are now closed for this story

mike
said

The Cap and Trade plan is open to too much corruption. If David Suzuki is in favor of a carbon tax there must be merit to it. After all, he has been warning us for many many years about climate change and its only lately that we are realizing that he is right. We should respect his advice.
To those who say that global warming doesn't exist, the amount of smog in large cities should alarming enough. Wake up! it doesn't take a genius to realize that using fossil fuels is not only bad for the environment but bad for our health.
A carbon tax seems to be an effective way to invoke the change needed.

Jim McB
said

They trade carbon credits, we pay the increased price of goods. Where does the money go, to the government of Quebec?

The biggest hoax in history is about to start costing individual Canadians. When it is revealed you can bet that you won't get your money back, it will be in some so called environmentalists pension fund!

Henry Wysmulek
said

Biggest joke ever pulled on Humanity.

raj
said

Dumb idea- it wont help at all.not at all

Sam Crawford
said

So it's okay to pollute, as long as you pay a premium to do so? How does THAT help?

WOW...
said

Wow, what a scam! You can pollute as much as you want as long as you are rich enough to buy credits? Exactly how is this going to reduce the actual amount of GHG's? So in theory my company can remove any current environmental controls as long as we buysome credits from another country (the cost of these credits will of course be transfered to the consumer). Well lets pitch our money at some third world dictator (who under kyoto doesn't have to be environmentally friendly) and pollute as much as we want. Thank god the liberals have figured out how to keep polluting and waste money. Now lets figure out how to funnel some of this money to some Montreal ad executives...

Mike Webster
said

The idea of "emissions credit" trading is so utterly ridiculous that it could have been created by Monte Python. The idea that paying someone else not to pollute or to pollute less for the right to pollute more yourself somehow helps the environment is both illogical and disingenuous. Cap and Trade is a scam designed to give the impression of actually doing something for the environment while not actually doing much of anything.

JPC
said

Outstanding and long overdue...unlike the 'Liberals' this government DOES something about the problem...

John
said

Looks like another great gimmick not to do any in-house cleaning to reduce emmission. Intead companies need access to green technology and funds to clean up. This will be a heaven for speculators make money.

bobby
said

Ian said:

"When I was a kid it was global cooling."

Guess what? The planet has been cooling since 1998 - but don't expect the lying "watermelons" to tell you that. NASA has!

Sierra
said

And here come the bankers to save the day!!

What a farce,, these guys have been lobbying for Kyoto from day one, they couldn't care less about the environment all they were looking for is a way to make a buck

rickj
said

This debate should not be about Liberals and Conservatives, but about leaving our children a safe environment to raise their children.

God save our children.

Dave
said

I have a phrase for this:

"Environmental Socialism"

You Canadians love your socialised medicine, but are you ready for government mandated carbon taxes? This is such a pile of nonsense. I cannot believe that in this day and age, people are so STUPID to think that this isn't a sham. Wake up Canada.

roy
said

I would like to know how many of you people condemming the Conservative government have boats, suvs, snowmobiles motor bikes gas lawnmowers, etc,etc,etc. all uncessary poluters what are you doing. and I don't think capping and trading credits really cut emissions because they are still putting the same amount of pollution into the air.

Myriah
said

Let's see; I own factory A and factory B in Canada, I must lower emissions and comply with CAP & TRADE so I raise the price of the goods I sell immediately. I take my new profits and move factory A to Mexico. Now I've reduced emissions and sell my leftovers for more profits.
1000 Canadians are unemployed and I make more money. Sounds like a great idea to me.

Sonny
said

Well it's too bad Bush Jr. took the Election from Gore. The World would be a better place...

Charest is correct that things will change under a new U$ President.

The best example is looking at the European model. This is like getting at the ground floor of what will potentially be a market in the billions of dollars.

Otherwise, plant a tree!(smile)

Jim Cripwell.
said

This "cap and trade" exchange is a total waste of time and money. Anthropogenic global warming is a myth; a hypothesis with nothing to back it up. Global temperatures are now falling, as confirmed by data from NOAA, UK Met. Office, NASA, and the University of Alabama (Huntsville). In addition, the AQUA satellite, with it's microwave sensing unit, completely confirms this fact, that global temperaures are falling, completely contrary to the forecast of the IPCC, which correctly notes that CO2 concentrations are increasing at an unprecedented rate. I suggest it is about time the media started looking into the science fiction that is the alleged basis for all the global warming and climate change hype.

IAN
said

and the rich will get richer, eh Mr. Gore, as the stupid buy into enviro-terrorism and superstitious nonsense like Y2K, the end of the world et al. When I was a kid it was global cooling.

Josh in Ontario
said

Telling from some of the comments I'm guessing some ppl don't know how this really works. All firms have to reduce emissions by 20% by 2020. If they do not, they have to buy credits from other companies who have decreased their emission by MORE than 20%. Therefore total emissions will decline. If a company does not buy credits to exceed its 20% reduction target, it will get owned with huge fines. The Euros have been doing this for a while and it works, they are well on their way to meeting Kyoto.

JDP
said

Well, Canada's "Environmental Politburo" has now been established, taking wealth away from the wealthy and giving it to the poor, with the various Diocese of Global Warming (like Al Gore) taking their 'cut' of the winnings, of course. 60 years ago these wealth re-distributions schemes were done under the banner of Communism and Fascism - today they are done under Environmentalism. Another common trait - no dissenters allowed. Look up what the Czech President has said on this whole hullabaloo - he makes some great points.

But I have faith we as a people will someday see through this nonsense. Any bets on when this nonsensical 'exchange' will shut down because of lack of use?

My guess is when more and more people finally realize that we humans, who cannot predict the weather tomorrow with absolute accuracy, certainly cannot control the weather today, either. Hopefully that realization comes sooner rather than later.

Of course, the environmental radicals will say that global warming has caused the next cycle of 'global cooling' - and the lemmings will follow in step. Sad, really.

PS: I'm not a Conservative party staffer, just a free-thinking Canadian libertarian.

Greg from Kitchener
said

Come on you liberal complainers! it's a start, more than what liberals have ever done in the past.

dougb
said

Isnt this like smoke and mirrors? A company can buy credits that can not meet a bench mark, where as another who can can save. Where in the western world have you seen a company turn around that has made or save money give back to the consumer. What you do see is that a company that has to buy anything passes on the increase to the consumer. In the end, are we going to see a change in anything, I doubt it. Just get ready for another increase in the cost of living. Buying your way out of anything just means someone else picks up the tab for it.

glen gaffney
said

i disagree with some aspects of this system. . companies can actully buy credits for companies in other countries. lets clean up canada first.

RRor
said

I can't think of a stupider way to lessen pollution, but hey as long as somebody makes some money it must be ok

Lart from Above
said

Carbon trading is the cheap way to comply with the requirements of the Kyoto treaty and the cost-effective way to move all industries to lower carbon emission levels. There's still time to save the planet (and Canada's international reputation).

David Cole
said

Why is John Baird participating in this?

Mandosa
said

And when we still have hurricanes, earthquakes, and sweat in the summer, we'll have to give chicken little a new song to sing. And once every single item manufactured on this planet has a 'made in China' sticker on it, we'll really be able to pat ourselves on the back.

Sahib Reginawale
said

This has me confused!

Josh in Ontario
said

It�s interesting you know... the Liberals promised us (by signing Kyoto) that they would cut GHGs yet they actually didn't do anything to reach their promised targets. They didn't pass one law, not one regulation to combat emissions. It then takes a Conservative government to introduce real laws and regulations to force emitters all across the countries to lower their emissions by 20% over the next 13 years, and reduce overall pollutants emitted by 50% over the next 13 years. That�s right people, liberals are hypocrites and Kyoto was a stunt to make us think they cared about the environment, but Harper actually delivered. No carbon tax is needed that would make gas prices EVEN higher, or substantially raising the cost to heat your home, just adjustments made to tech and business practices forced by Harper's legislation to the big emitters.

Will
said

The beginnig of the end....... The environmental alarmists will throw the people on this planet into an economic and environmental catastrophie the world has, up until now never seen. The future inhabitants of our world will look back upon "us" and use this mess as an example of what not to do in the future.

Sonny
said

Now we can CAP & TRADE. To all you deniers out there. Harper is even talking "Climate Change" with European leaders. Too bad Canada is in a hypocritical position under the Conservatives adhering to Kyoto.

If Canada cannot meet its 1990 levels then buying credits is another way to achieve some balance else where. Otherwise, we will be subject to a 30% penalty for the successor to Kyoto.

James
said

While this makes for great media sound bytes, go to the exchange website and look at the volume traded so far. Three (3) contracts in total for the entire day. Most exchanges trade thousands of contracts each day. There are many non-market forces at work in Canada that will limit this market. The government allows polluters to pay $15 and get out of most of their obligations. Many provinces are talking about a carbon tax (not a market instrument). People like the idea of emissions trading, but the Canadian system is not structured to support it.

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