Editing Emissions trading (section)

===Linked trading systems===
Distinct cap-and-trade systems can be linked together through the mutual or unilateral recognition of emissions allowances for compliance. Linking systems creates a larger carbon market, which can reduce overall compliance costs, increase market liquidity and generate a more stable carbon market.<ref>[https://icapcarbonaction.com/index.php?option=com_attach&task=download&id=241 "Linking Emissions Trading Systems: A Summary of Current Research"] {{Webarchive|url=https://web.archive.org/web/20211120185930/https://icapcarbonaction.com/en/?option=com_attach&task=download&id=241 |date=2021-11-20 }}, ICAP 2015.</ref><ref>Burtraw, D., Palmer, K. L., Munnings, C., Weber, P., & Woerman, M., 2013: Linking by Degrees: Incremental Alignment of Cap-and-Trade Markets. SSRN Electronic Journal. {{doi|10.2139/ssrn.2249955}}</ref> Linking systems can also be politically symbolic as it shows willingness to undertake a common effort to reduce GHG emissions.<ref>Flachsland, C., Marschinski, R., & Edenhofer, O., 2009: To link or not to link: benefits and disadvantages of linking cap-and-trade systems. Climate Policy, 9(4), 358–372. {{doi|10.3763/cpol.2009.0626}}</ref> Some scholars have argued that linking may provide a starting point for developing a new, bottom-up international climate policy architecture, whereby multiple unique systems successively link their various systems.<ref>Ranson, M., & Stavins, R., 2013: Linkage of Greenhouse Gas Emissions Trading Systems - Learning from Experience. Discussion Paper Resources For The Future, No. 42</ref><ref>The House of Commons Energy and Climate Committee, 2015: Linking emissions trading systems. London.</ref>

In 2014, the U.S. state of California (which is the world's fifth largest economy if it were a nation, between Germany and the United Kingdom in size) and the Canadian province of Québec successfully linked their systems. In 2015, the provinces of Ontario and Manitoba agreed to join the linked system between Quebec and California.<ref>[http://www.cbc.ca/news/canada/montreal/quebec-ontario-manitoba-cap-and-trade-1.3354002 "Quebec, Ontario, Manitoba sign agreement to link cap-and-trade systems"] {{Webarchive|url=https://web.archive.org/web/20160629143555/http://www.cbc.ca/news/canada/montreal/quebec-ontario-manitoba-cap-and-trade-1.3354002 |date=2016-06-29 }}, CBC News, 7 December 2015.</ref> On 22 September 2017, the [[Premier (Canada)|premiers]] of Quebec and Ontario, and the [[Governor of California]], signed the formal agreement establishing the linkage.<ref>{{cite web|title=California-Ontario-Québec Agreement on the Harmonization and Integration of their Cap-and-Trade Programs|url=https://www.arb.ca.gov/cc/capandtrade/linkage/2017_linkage_agreement_ca-qc-on.pdf|website=California Air Resources Board|publisher=[[Government of California]]|access-date=14 November 2017|archive-date=14 November 2017|archive-url=https://web.archive.org/web/20171114145218/https://www.arb.ca.gov/cc/capandtrade/linkage/2017_linkage_agreement_ca-qc-on.pdf|url-status=live}}</ref>