Removes uncertainty for people,
companies and governments

A big advantage of a Cap and Share approach is that people will know where they stand and will be able to plan accordingly.

We will know that energy prices will rise year by year, and we will take that into consideration when we decide where to live and what sort of house or car to buy and transport arrangements to make.

In the same way, firms and governments will know that their transport costs will be rising significantly and will take that into account when deciding whether to amalgamate plants or close down small schools and hospitals.

In particular, the introduction of a Cap and Share approach will give people confidence to invest in renewable energy production and energy-saving technologies. The risk that, say, oil prices might drop and make your project unprofitable will be taken out of the equation.

Poorer people using less carbon will be able to depend on regular supplementary income.

Communities will be able to depend on an annual Community Transition Fund to help them decarbonise.

As a result, the rate at which we make the transition to a low-carbon economy should be greatly increased.