"That means they are acknowledging global warming. That is a really a great step forward in the right direction," Schwarzenegger said in Vancouver, where he was wrapping up a three-day trade visit to Canada that has stressed environmental issues.

Schwarzenegger, who has accused his fellow Republicans in the White House of inaction on climate change, avoided mention of the Bush Administration's renewed rejection on Thursday of caps on emissions of greenhouse gases.

California has adopted the most far-reaching greenhouse gas emissions law in the United States, aiming to cut emissions to 1990 levels by 2020, a 25 percent reduction.

Schwarzenegger has also spearheaded a regional agreement to address climate change issues. The agreement now includes five western US states and the Canadian Pacific Coast province of British Columbia.

"For me, the most important thing is speed... because the quicker we all come together, all the nations, all the states all the provinces, the more we can show nations like India and China that you can reduce greenhouses gases while you are also taking care of the economy," Schwarzenegger said.

The White House on Thursday said it still rejects calls for global trading of carbon emission credits. Schwarzenegger did not say what impact that might have on the his regional emissions plan, which officials expect will soon include the Canadian province of Manitoba.

The plan unveiled by the White House called on about 15 heavy greenhouse gas emitting countries to agree by the end of 2008 on a long-term goal to cut emissions.

It was the strongest statement yet from the United States about curbing climate warming after the international Kyoto Protocol ends in 2012, but critics have already dismissed it as a delaying tactic.

Schwarzenegger and British Columbia Premier Gordon Campbell signed an agreement on Thursday for the Canadian province to adopt California's low carbon fuel standards.

Ontario, the country's largest province, signed a similar agreement with Schwarzenegger on Wednesday.