Ontario is set to join Quebec and California in a cap and trade system for greenhouse gases The Globe and Mail reports.
The move, if it comes to fruition, would mean 60 percent of Canada's population would be covered by cap and trade.
Ontario Environment Minister Glen Murray is expected to present the plan to cabinet for approval within the next 10 days. It is believed to have widespread support among ministers already, one source said. The broad outlines of the system will be announced some time this spring – possibly around an interprovincial climate summit in Quebec City on April 13 – with full details worked out over the coming months.
According to the report, the introduction of the cap and trade system would raise between $1 billion and $2 billion per year depending on the price of carbon credits. That money would be raised by charging industry to emit greenhouse gases. That cost would eventually be passed onto consumers through increased prices but unlike a direct carbon tax would be more difficult to track.