WCI Status Update PDF Print

WCI Partner jurisdictions are providing this update to inform the public and interested stakeholders on the status of WCI and, in particular, on progress towards implementing the WCI regional emissions trading program.

WCI Partners have made significant progress on key elements of the regional emissions trading program

Five WCI jurisdictions have made tremendous progress on key elements of a linked regional program including emissions reporting, offset protocols, infrastructure requirements and the regional administrative organization. (Information on each of the key activities underway is provided below.)

WCI continues to work towards a 2012 start date for regional emissions trading 

Five WCI Partner jurisdictions are working together to implement the regional emissions trading program. As each of the jurisdictions assesses its options for moving forward, California, British Columbia and Québec are working towards a 2012 start date. Ontario and Manitoba will join after the program starts.

Partner jurisdictions are working on a range of other approaches 

All 11 WCI Partner jurisdictions continue to work together on a portfolio approach to climate action and with states and provinces in other North American climate initiatives.  This portfolio approach will include a range of strategies and policies to grow the low-carbon, clean energy economy in North America.  Information on next steps under the portfolio approach will be released in the coming months. 

Work is underway to put in place the components needed to implement the regional emissions trading program, including emissions reporting, offset protocols, infrastructure requirements and a regional administrative organization.  Detailed information on the status of each of the key program activities is provided below. 

  • Emissions Reporting: The five WCI Partner jurisdictions have been phasing in new reporting requirements to support the design of the regional emissions trading program. In both Canada and the U.S., WCI Partner jurisdictions have also been working with their federal counterparts to develop common systems that will minimize duplication and reduce the reporting burden for industry.  Ontario is phasing in new WCI reporting requirements, which will allow collection of data to ensure the program achieves its environmental and economic objectives and will join the WCI emissions trading program after the expected start date in 2012. Manitoba, which recently concluded a public consultation on cap and trade also expects to start after 2012 pending review of the consultation outcomes. The WCI design accommodates partners joining any time after the program starts.
     
  • Offsets: The WCI emissions trading program will include an offset system that produces high-quality offsets to ensure cost-effective compliance options through a broad range of emission reduction strategies. The WCI Partner jurisdictions have previously developed recommendations for the WCI offset definition and quality criteria as described in the WCI paper "Offsets System Essential Elements Final Recommendations" (July 2010).  The WCI Partner jurisdictions are releasing this week draft recommendations for the process of offset project approval, in order to have this system element ready for adoption by those jurisdictions who need to incorporate it into their rules.  The WCI Partner jurisdictions are also evaluating an initial set of protocols to meet the WCI quality criteria.

  • Tracking System: The WCI Partner jurisdictions are working to establish the compliance instrument tracking system needed to ensure accurate accounting of the issuance, holding, transfer, and retirement of emission allowances and offset credits. The goal is to have an accessible, secure, and scalable tracking system that is consistent with legal requirements in each jurisdiction and which also meets the jurisdictions' transparency objectives through public reporting options. The WCI Partner jurisdictions are continuing to work on defining the functional requirements of the tracking system to ensure these objectives are met and that the system is ready for the start of the program.
     
  • Auction Platform: The WCI Partner jurisdictions are working to define requirements for an auction platform to coordinate the auctioning of allowances on a regional basis.  The WCI auction platform will ensure fairness and transparency, promote price discovery, and maximize efficiency in the allowance market while being consistent with applicable state and provincial laws. The Partners are finalizing recommendations and discussing how to harmonize elements of the auction design to achieve a common design through linking.  Joint work is underway on setting a reserve price and purchase limit, addressing currency exchange issues, settling tied bids, and evaluating options for consignment of allowances and for a non-competitive component of the auction.
     
  • Regional Administrative Organization:  A regional administrative organization (like RGGI Inc.) is one way to support coordinated implementation and ensure integrity, efficiency, and consistency in the administration of the emissions trading program. The WCI Partner jurisdictions are considering setting up a regional administrative organization, and are in the process of defining the range of functions and organizational structure of a potential regional administration organization for the WCI program.

  • Market Monitoring and Oversight: Comprehensive and effective market monitoring and oversight are necessary to ensure that market participants are protected from fraudulent activities.  The WCI Partner jurisdictions have recommended specific policies to ensure fair and equal access to the market, transparent operations, timely public disclosure of critical information, and a market free of manipulation so that prices reflect supply and demand conditions for greenhouse gas emission reductions. The Partners are currently considering market monitoring options in order to determine the best approach for the WCI regional program. 

The WCI Partner jurisdictions will provide periodic updates on their continued progress.  The next opportunity for stakeholders to receive an update on the status of the WCI regional emissions trading program and discuss program developments with Partner representatives will occur at a stakeholder meeting to be held in conjunction with the Navigating the American Carbon World (NACW) conference on Wednesday, April 13, from 1:00 - 3:00 pm (Pacific time).  This meeting will be available via teleconference for those stakeholders unable to attend in person.  To join via teleconference, dial 1-800-868-1837 toll free in the U.S. and Canada (1-404-920-6440 outside the U.S. and Canada) and enter code 753491#.