Calgary (Platts)--4Apr2008

British Columbia has introduced legislation to limit greenhouse gas
emissions, according to statement issued Thursday by the Canadian province.

"The Cap and Trade Act will make British Columbia the first Canadian
province to introduce legislation authorizing hard caps on greenhouse gas
emissions," BC environment minister Barry Penner said in a statement.

"This enabling legislation provides the framework to participate in the
Western Climate Initiative cap and trade system currently under development,"
he added.

The cap-and-trade regulatory system sets limits on emissions and allows
regulated emitters to buy and sell emissions allowances or buy offsets.

Those who can reduce emissions more efficiently are able to sell their
surplus units to those who find it more challenging to do so. This system
transfers responsibility for managing emissions reduction to emitters, while
market forces help determine the distribution of reductions, the statement
said.

Under the act, the BC government will set the cap for designated large
emitters by issuing a limited number of emissions allowances for given periods
of time, it added.

Each designated emitter will then be required to obtain a number of
compliance units equivalent to the amount of regulated greenhouse gas
emissions it releases within the specified compliance period. These units must
then be surrendered to the government as proof of compliance.

--Esa Ramasamy, esa_ramasamy@platts.com