(Bloomberg) -- Leaders of countries and regions across the Americas vowed to put a price on greenhouse gases as a key instrument in the fight against climate change.
Canada, Colombia, Costa Rica, Chile and Mexico pledged to apply the cost of carbon dioxide discharges to guide public investment decisions and to encourage private companies to follow suit through internal pricing systems. The governors of California and Washington, as well as the premiers of Alberta, British Columbia, Nova Scotia, Ontario and Quebec, also joined the declaration signed at a climate summit in Paris on Tuesday.
All those jurisdictions already have or are in the process of introducing a carbon pricing systems in their economies and aim to integrate their markets in the future.
“An emissions trading system is one of the most cost-effective and smartest way to tackle climate change, strengthen and preserve our competitiveness,” Jose Oriol Bosch, chief executive officer of the Mexican Stock Exchange, said in a statement today. “Linking our markets under the Carbon Pricing in the Americas will be key to reduce costs and provide flexible mechanisms to all companies throughout the region.”
The initiative was endorsed by the International Emissions Trading Association, whose members comprise leading energy companies, consulting firms and brokers. The IETA promotes the expansion of carbon markets globally to help meet the goals of the climate-protection Paris Agreement reached by almost 200 nations in 2015.
“The rising interest in market-based solutions around the world will help mobilize business to advance the Paris Agreement’s goals while preserving competitiveness,” IETA’s president Dirk Forrister said.
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