Cap and Share
17 November 2007
The UN wants a higher price on carbon -
but who will profit and who will loose?
US author and climate campaigner Peter Barnes proposes a "cap-and-rebate" scheme
that would pay everyone to combat climate change
London - Monday 19, Tuesday 20 and Wednesday 21 November
Contact: Will Howard - 07854 239099 - info@capandshare.org
To control carbon emissions and avoid catastrophic climate change, most players, from the UK Government to the UN, are pursuing ways to include a carbon price in all goods and services. How this is achieved will have a major impact on companies, the poor and elections.
In a new book "Climate Solutions: A Citizen's Guide", US social entrepreneur and author Peter Barnes compares the four main methods for raising the price of carbon and capping emissions:
* taxes
* cap-and-giveaway
* cap-and-auction
* cap-and-rebate.
Carbon taxes, he notes, may have to be very high to be effective, do not provide an absolute cap, often hurt poor people and are liable to be unpopular and become a political football.
Cap-and-giveaway, a cap-and-trade system where most emission permits are given to the bigger polluters, is the main approach taken by the EU Emissions Trading Scheme. In Phase II from 2008 to 2012 it will result in higher prices for consumers, windfall profits for companies and only a standstill in carbon emissions.
Cap-and-auction, another variation on cap-and-trade where permits are 100% auctioned by government to polluters, is becoming a favoured solution in the USA. Auctioning could be a step in the right direction if the revenues are used to speed the transition to a low-carbon future and to protect the poor from rising carbon prices.
Cap-and-rebate starts from the principle that "we all equally own the sky". Pollution permits are auctioned and the money rebated equally to citizens. It has many advantages including being easy to implement quickly, automatically compensating people for rising carbon prices and hence being highly politically acceptable. The scheme would be best administered by an independent "Sky Trust", part of a new sector in the economy with the remit of protecting and sharing out the benefits or various environmental and cultural commons.
''From a political perspective, a carbon cap with rebates to citizens .... would lock in popular support for emission reductions no matter how high fuel prices rise," says Barnes. ''On top of that, it would take politicians off the hook for rising prices. Politicians can say 'the market sets prices and you determine by your own energy use whether you gain or lose."
In the UK a new campaign is working for a similar scheme called "Cap and Share". In Ireland cap-and-share is being studied as a leading option by Comhar, the Irish Sustainable Development Council, and by the Minister for the Environment John Gormley to control emissions not covered by the EU Emissions Trading Scheme such as transport and home-heating fuels.
Peter Barnes is available for interview on Monday 19, Tuesday 20 and Wednesday 21 November. He will be giving talks at the LSE in London, Judge Business School in Cambridge and Oxford Town Hall.
Contact
Will Howard - 07854 239099 - info@capandshare.org
-----------
More info
www.capandshare.org/press1.html
Books on web
Carbon Capping: A Citizen's Guide by Peter Barnes
(22 page Booklet, November 2007)
Available on web at www.capandshare.org
Climate Solutions: A Citizen's Guide. What works, what doesn't and why by Peter Barnes
(Book to be published December 2007 by Chelsea Green)
For review only at www.capandshare.org/pdfs/ClimateSolutions.pdf
Capitalism 3.0 by Peter Barnes
(Book 2006)
Available on web at www.capandshare.org
-----------
Notes
The UK Government Climate Change Bill November 2007
"Legally-binding targets to cut CO2 emissions by at least 60 per cent by 2050 and 26 to 32 per cent by 2020".
IPCC Fourth Assessment Report 17 November 2007
"An effective carbon-price signal could realise significant mitigation potential in all sectors. Modelling studies show global carbon prices rising to 20-80 US$/tCO2-eq by 2030 are consistent with stabilisation at around 550 ppm CO2-eq by 2100."
Table SPM6: 535 – 590 ppm CO2-eq would give a 2.8 – 3.2 degrees C rise in global average temperature increase above pre-industrial levels.
EU Emissions Trading Scheme
10% auctioning of emission permits will be allowed in Phase II from 2008 to 1012
"When allowances are grandfathered there is scope for some allowances to make windfall profits by passing on the (opportunity) cost of the permits despite receiving costless emissions allocation rights. DTI analysis has estimated that the large electricity generators gained £1.2 - £1.3 billion in 2005 arising from grandfathering of emission allowances under the EU-ETS."
Draft Climate Change Bill, March 2007, 4.4.12
Cap-and-auction in US
100 % auctioning recently supported by both Hilary Clinton and Barack Obama
www.hillaryclinton.com/issues/energy/
www.barackobama.com/issues/energy/
-----------
Meetings
London, Monday 19th November 2007, 7.30 - 9 pm
London School of Economics, Hong Kong Theatre, Clement House, Aldwych
Chaired by Andrew Simms, Policy Director new economics foundation
Hosted by LSE Public Lectures and Events, This event is free and open to all.
Oxford, Tuesday 20th November 2007, 7 - 9 pm
Oxford Council Chamber, Town Hall, St. Aldate's
Chaired by Dr Nick Eyre, Leader of Lower Carbon Futures group, Environmental Change Institute
Hosted by Oxford City Council, this event is free
Cambridge, Wednesday 21 November 2007, 6.00 to 7.15 pm
Judge Business School, University of Cambridge, Trumpington Street
Hosted by the Judge Business School, this event is free
