last updated 22nd September 05
by 4ecotips.com

Buying domestic fuel could involve carbon credits

Imagine the scenario...it is 2015, and you are buying fuel for your hybrid car.
You go to pay, and are told that your purchase will cost £100, plus 50 carbon credits.

Thankfully, you have just received your regular top-up of free carbon credits into your online carbon account, which already has a healthy balance due to your low carbon consumption.

So you hand over your carbon ID card, and the credits are electronically taken from your account in real-time. This saves you having to buy the units at the point of sale, which at current market prices would cost you £25.

Sounds far-fetched? Well maybe not!

The Sustainable Development Commission (SDC) recently recommended that the Government should seriously consider the possibility of extending 'cap and trade' schemes for carbon dioxide (CO2) across the whole economy, to cover individuals, as well as business and the public sector.

This would enable us to achieve guaranteed, annual cuts in our national 'carbon budget', and eventually reduce our emissions by at least 60% by 2050 - meeting the Government's long-term target.

Individuals would be given a free allocation of carbon credits, on a per capita basis, which they would use to pay for purchases of electricity, petrol and gas. People that are low carbon consumers would be able to sell their surplus credits on the carbon market, whilst those with a high consumption would have to buy.

The cost of carbon would therefore become included in everyday decision-making, which would promote energy efficiency and behavioural change, whilst encouraging the development of new low carbon technologies.

The key features of such a scheme are that each individual is given the same 'right' to emit carbon. If they don't need all their freely allocated credits, they can sell the surplus on the open market, providing them with additional income. Those with a high demand for carbon would need to purchase additional credits to cover their consumption.