Canada's GHG Exchange On Hold Until Harper Debuts "Plan" In Fall - Reuters

[hatrack]

NEW YORK - The first greenhouse gas emissions market is set to launch in Canada, but exchange officials said it won't clear any deals until it finds out whether Ottawa's new Conservative government will drop out of the Kyoto Protocol on global warming.

The government's decision on the pact will determine whether the mandatory or voluntary CO2 credits are traded on the Montreal Climate Exchange. The exchange is being formed by the Chicago Climate Exchange (CCX), a voluntary US climate bourse, and the Montreal Exchange, a derivatives exchange.

Through its membership in the Kyoto pact, Canada is one of about 40 developed countries that are required to cut emissions of greenhouse gases, such as carbon dioxide that is released by cars and power plants. Canada agreed in 2002 to cut emissions by 6 percent of 1990 levels by 2008 to 2012.

However, the new government of Canadian Prime Minister Stephen Harper has said that's an impossible goal as emissions are now 35 percent above the 1990 levels. The country, a major energy producer, is beginning to exploit its vast molasses-like oilsands in Alberta, the biggest source of oil outside Saudi Arabia. The government has said it will lay out its greenhouse gas reduction plan in the fall.

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