CO2 Household Certificates 1. Context, background and objective Households certificates (or individual carbon trading), as market based instruments, have been discussed in certificates recent years. concept carbon of household certificates derives earlier experiences Households (or The individual trading), as market market‐based based from instruments, have been with the pollution permit schemes (e.g. NO
trading program in the U.S. and the EU Emission x
discussed discussed in recent years, but have not been implemented. The concept of household certificates in recent years. The concept of household certificates derives from earlier experiences Trading Scheme (ETS), etc.). derives with the from pollution earlier permit experiences schemes with (e.g. the NO
pollution permit schemes (e.g. NOand program in the U.S. the EU program Emission in x trading x trading First suggested by David Fleming in 1996, the attribution of individual emission permits is thought the U.S. and the EU Emission Trading Scheme (ETS), etc.). Trading Scheme (ETS), etc.). to be more equitable than the existing industrial schemes, as individuals can be given an equal First suggested by David Fleming in 1996, the attribution of individual emission permits is thought amount of emission Under such schemes, individual consumption main to be more equitable rights. than the existing industrial schemes, as individuals can becomes be given the an equal location of GHG emissions. amount for
of capping
emission rights. Under such schemes, individual consumption becomes the main location for capping of GHG emissions.
2. Approach The basic principle is to set a cap to limit CO2 emissions from the population, and to divide the cap into polluting rights that are delivered to individual emitters. Those who emit more CO2 that they have been allocated are required to buy ‘pollution permits’ from those who are emitting less than they have allowance for. The right to pollute addresses a problem previously seen as an unregulated externality. 3. Involvement of actors and thei
role
3.
Involvement of actors and rrtheir 3. Involvement of actors and thei
role
role Government, local authorities: initiators Government, local authorities: initiators Government, local authorities: initiators of the scheme of the scheme of the scheme Citizens/ Households: participants and Citizens/ Households: participants and Citizens/ Households: participants and beneficiaries beneficiaries beneficiaries The suggested possible schemes vary in terms of their base unit (individuals, households, companies, and combinations of those), the exceptions they allow (including/excluding children, economic sectors, etc), the types of emissions regulated (direct and indirect individual emissions), the respective complementary with industrial regulations and the technical details of the scheme (cap setting, allocation, monitoring, etc.). 4. Results The system could result in an overall reduction of CO
emissions of individuals in an economically 2
efficient and perhaps morally egalitarian manner. The cap can be tightened over time. Unsustainable consumption is made more difficult, while behaving sustainably is rewarded. 5. Key challenges •
•
•
•
•
Lack of practical implementation examples Technology to be used Implementation and political acceptance Eventual use of parallel currency Interactions and compatibility with global trade 6. References Rubik F. et al, (2009), ‘Innovative Approach in European Sustainable Consumption Policies’, Institute for ecological economy research