Stop Waiting for the Government

http://www.businessweek.com/ap/financialnews/D9F456EO0.htm

“Canada will not act this year on a cap-and-trade system to control climate change because the government does not expect the U.S. to pass emissions-control legislation this year, Canada's environment minister said Thursday.

Jim Prentice said Canada is committed to harmonizing its climate change initiatives with the United States so that it can reduce greenhouse gas emissions without damaging its trade relations with its southern neighbor.

"We have said that if the United States is prepared to go down the road of a cap-and-trade system, we are as well. We've done the analytics. We're set to go," he said.
"But at this point, my assessment is that it's unlikely that the U.S. Senate will introduce or pass cap-and-trade legislation this year, possibly, even unlikely, next year," said Prentice.

Under a cap-and-trade system, emissions of heat-trapping gases from power plants, refineries and factories would face increasingly more stringent limits, or caps. Companies could then invest in pollution-reducing technologies, or buy and sell permits to meet the cap -- the trade portion.

The emissions-reduction plan is the cornerstone of the U.S. Democrats' climate-control policy, but is stalled in the U.S. Senate after it was passed in the House. Republican critics say it would lead to soaring energy prices, suppress economic recovery, cost jobs and result in higher prices on goods and services. Democratic argue that the bill contains measures to mitigate the cost to consumers by promoting energy efficiency and to develop alternative energy sources and "green" jobs.
Prentice said while Canada is committed to reducing its emissions, it will not introduce cap-and-trade legislation that is divorced from the country's principal environmental and economic partner.

He says Canada will instead focus on other measures that are not trade-sensitive, such as thermal electricity or improving treatment of waste water in cities.
At the same time, Canada will work together with the United States on regulatory measures, such as the recent agreement to cut auto emissions, Prentice said. He added that the two countries will soon introduce tougher standards for ships and aircraft as well.”

I wouldn’t hold out for the American government to get their act together on the cap-and-trade bill any time soon. While it’s encouraging to see that Canada will work with the U.S. to begin introducing other regulatory measures, the fact that we are forced to wait for the U.S. to make a decision regarding cap-and-trade is a sign of our over reliance on the Americans.

Business leaders on both sides of the border shouldn’t wait for governments to take action. A market implemented system between business partners could prove even more effective than any plan the government puts forth. Doing so could even allow businesses that get involved in a volunteer cap-and-trade system to be ahead of the competition if and when new rules are put out.