Ontario is joining an initiative which aims to compel companies to reduce their greenhouse gas emissions. (Ontario is the 2nd largest polluter in Canada, behind Alberta.)
The province is now part of the Western Climate Initiative (WCI), which includes British Columbia, Manitoba, Quebec and seven U.S. states.
A key to the initiative is a so-called cap-and-trade system, which allows polluters to buy credits from greener companies.
Premier Dalton McGuinty says Ontario is "proud to be welcomed into this important organization of climate-change leaders."
Environment Minister John Gerretsen calls the cap-and-trade system "fair and effective (and) economically and environmentally sound."
Ontario and Quebec had earlier signed their own cap-and-trade deal on June 2 during a joint cabinet session.
The cap-and-trade system is scheduled to be in place by 2010.
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