The federal government is pledging to facilitate the creation of an emissions trading scheme for pollution credits in Canada. However, the budget offers few details of its plans.

In Monday’s federal budget, the government says it will “Develop the necessary policy and regulatory framework to facilitate the successful launch of emissions-trading markets in Canada.”

An official from the Environment ministry declined to offer any details of the government’s plans in this area, except to say that it sees market mechanisms as an important part of its efforts to reduce greenhouse gas emissions and air pollution.

In December 2005, the Montreal Exchange and the Chicago Climate Exchange announced plans to create an emissions trading exchange in Canada, but that effort awaits a regulatory framework under which companies would be required to cap their emissions, and trade them.

The MX and CCX founded the Montreal Climate Exchange Inc. in August 2006. The MX owns 51% of the climate exchange and the CCX owns the remaining 49%. The MX indicates that if such a system is launched, the MX will be responsible for providing the trading, clearing and settlement systems, and it is also currently expected to be responsible for the self-regulatory function.