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.
