Ontario and Quebec have apparently taken a page out of the California playbook on environmental matters, agreeing today on a cap-and-trade system that is not expected to go over well with Canadian officials in Ottawa.

But as in the case with many of California's recent initiatives, the two renegade Canadian provinces may hold too much economic clout for federal official to take much of a stand. Unless of course Ottawa takes a page from the Bush Administration's playbook and starts filing lawsuits.

Today's memorandum between province officials would establish a cap-and-trade system by 2010 that would limit the amount emissions that companies can produce. Ontario and Quebec have yet to set specific targets, but the regional system will be similar to the one used in Europe.

Province officials said Ottawa's current plan to cut emissions 20 percent from 2006 levels by 2020 is inadequate. "We are concerned that the federal government is implementing a system that is not compatible with what exists in Europe and elsewhere, by choosing intensity-based rather than an absolute reduction in GHGs. They're out of sync with the rest of us," said Quebec Premier Jean Charest.

Ontario and Quebec have more than a little leverage here, given that the provinces account for nearly two-thirds of Canada's population. Province officials also said they want to be pro-active in anticipation of the new U.S. President next year. Charest predicted a "180 degree turn" in US policy on climate change. Here's hoping that jinxes don't travel across borders.

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Ontario and Quebec have yet to set specific targets, but the regional system will be similar to the one used in Europe.

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