Environment Minister Jim Prentice has indicated that Canada might have to change its strategy for regulating greenhouse gas emissions in order to avoid U.S. tariffs.

A private member’s bill that sets medium- and long-term targets for Canadian greenhouse gas emissions passed its second reading in the House of Commons Wednesday.

The federal government will talk with the provinces and territories as it crafts a new plan to regulate greenhouse gas emissions, federal Environment Minister Jim Prentice said in Whitehorse on Tuesday.

The federal government is spending billions to curb greenhouse gas emissions and other pollution but is largely unable to show the measures work, Canada’s environment commissioner warns.

The European Union is calling on developed countries – particularly the United States – to sign on to a global system for trading carbon credits to curb greenhouse gas emissions.