ST..JOHNS (CBC) - Newfoundland and Labrador is onside with a plan put forward by Quebec and Ontario for a carbon emissions trading market, Premier Danny Williams indicated last week.

At the Council of the Federation summit in Quebec City, Williams said he supports Ontario Premier Dalton McGuinty's agreement with Quebec Premier Jean Charest for a regional carbon-trading market to start as early as Jan. 1, 2010.

The "cap-and-trade" system would allow companies with higher greenhouse gas emissions to buy credits from companies with lower emissions.

The system is part of the premiers' overall pledge for a 20 per cent increase in energy efficiency in their provinces by 2020.

"We're in a unique position in Newfoundland and Labrador because we have a nice mix of renewable and non-renewable energy and of course, we have the wind, which hasn't been fully developed," Williams said at the Council of the Federation summit.

"But our big project is the Lower Churchill. That will take 17 megatonnes out of the system and that's where our emphasis will be over the next six or seven years."

Field work is still being done on the feasibility of developing the Lower Churchill hydroelectric project in Labrador. The project has been touted as a clean energy source.

Newfoundland and Labrador is the second-lowest carbon emitting province. Manitoba and British Columbia also came out in support of the trading system at the meetings held July 16 to 18.

Alberta and Saskatchewan opposed the scheme.

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