# Historic Agreement Demonstrates Broad Commitment To Build Clean Energy Economy 

*Published:* 2013-10-29
*Author:* Derek Walker

 *This commentary originally appeared on EDF’s [California Dream 2.0](http://blogs.edf.org/californiadream/2013/10/28/historic-agreement-demonstrates-broad-commitment-to-build-clean-energy-economy/) blog.*

![](http://www.edf.org/sites/default/files/experts/dWalker.jpg)With the stroke of a pen, North American efforts to combat climate change and promote clean energy reached a new level today.

I was lucky enough to witness the historic event, as Governor Jerry Brown joined the leaders of Oregon, Washington State and the Canadian province of British Columbia, to [sign an agreement](http://gov.ca.gov/s_pressreleases.php) that formally aligns climate and clean energy policies in the four jurisdictions.

This signing by these “Fab Four” of the [Pacific Coast Collaborative](http://www.pacificcoastcollaborative.org/Pages/Welcome.aspx) makes sense given all they have in common: they’re geographically connected, share infrastructure, and their combined regional economy accounts for a $2.8 trillion GDP, making it the world’s fifth largest economy.

Beyond the symbolic nature of today’s announcement, the event signals California’s far-reaching influence on energy and climate policy development.

Once labeled the [“go it alone” state](http://online.wsj.com/news/articles/SB10001424052970203687504576654833439619372), California is now succeeding with its “[lead by example](http://www.nationaljournal.com/magazine/california-s-new-cap-and-trade-law-a-model-for-the-country-20121213)” approach.

What has driven this success? Most recently, the Golden State established the world’s most comprehensive [cap-and-trade program](http://www.edf.org/news/kick-california%E2%80%99s-historic-cap-and-trade-program-climate-change-pollution-sets-stage-national-a), a proven and environmentally and economically sensible approach to limiting greenhouse gas emissions. Once considered a “[grand experiment](http://www.nytimes.com/2012/10/14/science/earth/in-california-a-grand-experiment-to-rein-in-climate-change.html?_r=0),” its early success has helped to establish a strong, viable market and [spur interest from around the world](http://blogs.edf.org/californiadream/2013/08/21/californias-latest-cap-and-trade-auction-shows-staying-power-sparks-international-interest/).

Today was no exception, as business, labor and environmental leaders from all four jurisdictions joined the signing, signifying a strong regional commitment to putting a price on carbon, using market mechanisms to spur a clean economy and reduce pollution on a regional scale.

The agreement is also further proof that [strong climate and clean energy policies are tied to economic benefits](https://www.comstocksmag.com/energy-efficient-opportunities), creating a large market for innovators and low-carbon businesses in the region. California is on the brink of [linking its cap-and-trade program with Quebec’s](http://blogs.edf.org/californiadream/2013/03/25/quebec-and-california-upcoming-merge-provides-strong-link-in-the-chain-to-fight-climate-change/); making the two states’ carbon allowances interchangeable and showing growing carbon market momentum.

Today’s event is a beacon of hope for national and global action to fight climate change. While the four parties in this agreement are in different stages in putting a price on carbon, their combined commitment is a positive sign and further impetus for regional and international collaboration. The vision of these four leaders – along with California’s proven record of success – makes me very optimistic that we are on the right path.