Canada's premiers said Friday they made progress on environmental issues at their annual meeting, but failed to reach agreement on a system of caps and trading for greenhouse gas emissions.

"Certainly, it is fair to say, on behalf of Ontarians, that we did not move the ball as far down the field as we would have liked," said Ontario Premier Dalton McGuinty at the closing conference of the meeting in Moncton, N.B.

"We have individual plans, but I would have liked to have a strong shared plan," he said.

The premiers said they are all signing on to a climate registry to measure emissions, and agreed to collectively produce 25,000 megawatts of energy by 2020 through sources such as hydro, wind, solar and tidal power.

Quebec Premier Jean Charest called it a first stage that could eventually lead to a cap-and-trade system.

He said Ontario, British Columbia, Quebec and Manitoba are ready to pursue the system now, and added the issue will be on the agenda again when the premiers meet next year in Quebec City.

Alberta is opposed to a cap-and-trade system, while other provinces, including British Columbia and Ontario, say it is the only way to cut emissions.

However, without a national system, each province is currently following its own path.

"Is there a cap-and-trade system here? No," Manitoba Premier Gary Doer said. "Is there a commitment to reduce greenhouse gases by all provinces? Yes. Would we prefer a cap-and-trade system? Speaking on behalf of Manitoba, yes."

A cap-and-trade system would put strict limits on the amount of greenhouse gases individual polluters can release. Industries exceeding the caps would pay fees to those under their limits.

"The whole debate about cap and trade is an important debate, but in my view less signfiicant a debate than the debate about actually reducing the level of greenhouse gas emissions into the atmosphere," said Saskatchewan Premier Lorne Calvert.

The premiers also failed to agree on the adoption of stricter California tailpipe emissions standards.

California's tailpipe controls require carbon dioxide emissions to be cut by 22 per cent by 2012 and by 30 per cent by 2016.

The provincial leaders also said they made progress on reducing interprovincial trade barriers.