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UK government interests in personal carbon trading

July 24, 2006

UK government interests in personal carbon trading

The UK government is to look into the idea of issuing citizens with personal carbon allowances to boost efforts to curb greenhouse gases emissions, environment minister David Miliband.said.

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 idea of personal carbon allowances is an extension of the emission trading scheme (ETS) already set up by the EU for industry. However, whereas the ETS covers only some 12,000 installations across the whole of the EU, personal allowances would have to cover millions of participants in the UK alone.

For more information visit defra website.

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