Green Week: Carbon Cards

Everyone could play their part in reducing global warming with the introduction of carbon cards, writes Struan Stevenson MEP.

"The radical proposal to reduce carbon emissions by allocating every individual citizen and every business a carbon allowance is beginning to take hold in the corridors of power.

A key environmental strategy committee set up between the US government and the European Commission has put carbon cards on the agenda for their next meeting. 

Under the proposed scheme, 40 per cent of the EU’s annual carbon emission quota would go to individual citizens, with individual carbon cards issued to each adult.

The member state governments would put up the remaining 60 per cent for auction to business and industry, with the proceeds used for other environmental control measures.

Each EU government would set an annual carbon budget, within the context of an overall EU allocation, which would be reduced year on year until we reach our target of a 60 per cent reduction by 2050.

Carbon cards would be swiped each time a person filled their car or paid for electricity or gas.

The system would be based on equal carbon allowances for all adults, although children would be allocated a slightly lower allowance to reflect their lower emissions.

The system would radically change the way we live our lives. Massive, gas guzzling four by fours would quickly disappear off city streets, to be replaced with fuel efficient or even electric cars and bicycles.

Householders would invest heavily in insulation and fuel efficiency. Unnecessary travel would be cut to a minimum. There would be no need for road tolls, as traffic volumes would dramatically fall.

Those wishing to continue enjoying their high emission lifestyles with big cars, frequent travel and large, inefficient homes, will have to pay for the privilege, by purchasing additional carbon allowances from low users.

The scheme would be popular amongst those who use bicycles and public transport, or those who live in energy efficient homes, as they will have a valuable commodity to trade.

It would also benefit lower income households who are generally responsible for lower overall emissions, providing them with spare carbon allowances to sell.

This compares favourably with the possible alternative of a carbon tax, which would disadvantage the poor, because they spend a greater proportion of their incomes on household energy and transport fuels than the rich do.

Personal Carbon Allowances (PCAs) would cover all household and personal transport energy use, including air travel. Almost half of the energy-related carbon and carbon equivalent emissions in the EU economy would be covered by the scheme.

By combining household energy use with personal transport, the scheme will give people flexibility in how they use their allowance.

However, in order to be effective, carbon allowances will have to be mandatory. A voluntary approach would never succeed. ‘Free-riders’ would always have far too much to gain.

The administration of the system should be straightforward. Each person would be allocated with an electronic card, containing his or her annual carbon credits.

The card would have to be presented when purchasing any kind of travel tickets or when buying energy and the correct amount of carbon would be deducted.

Existing technologies for direct debit cards could be used for this purpose, easing the introduction of the new system.

Currently there is very little information available to consumers, householders and travellers, about the carbon emission consequences of their decisions.

With the introduction of a system of PCAs, information and education on carbon issues would increase dramatically.

Carbon allowances could become a sort of parallel currency and people would want to know how much carbon they use when travelling by air, purchasing light bulbs, or a host of other issues.

Carbon labels will become commonplace. Adverts for foreign holidays would include information about carbon emissions.

The system would provide people with the freedom to chose whether to reduce their emissions through technical efficiency improvements and using more renewable energy, or through lifestyle changes such as turning down thermostats and holidaying nearer to home.

Environmental virtue will be rewarded because people with lower carbon lifestyles will have spare allowances to sell.

Following hot on the heels of the EU’s successful greenhouse gas trading scheme, PCAs will provide a framework for assured carbon reductions.

Current policies do not do this. As we wait for the next series of storms and floods to hit the EU, the spectre of global warming and its catastrophic impact on our lives becomes increasingly apparent.

Even at a barrel for crude oil, our energy consumption continues unabated. We queue at the petrol pumps like junkies waiting for a fix.

We burn gas and electricity in our homes, offices and factories, like there was no tomorrow. And if we go on like this, the experts warn, there may indeed be ‘no tomorrow’.

Our gas guzzling habits and the vast quantities of CO2 we emit have caused massive environmental damage. 

The UK government’s own chief scientist, Sir David King, has warned that global warming represents a bigger threat to mankind than international terrorism."

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