Climate Income

Climate Income is a simple, fair and effective solution to most of the climate crisis. Putting a price on pollution reduces the problem and sharing the money to all citizens means everyone can afford the extra costs.

  1. Why we believe in Climate Income
  2. How it stops Climate Change
  3. How Climate Income affects you
  4. Why EU adoption matters
  5. How it applies within the EU
  6. How it applies outside the EU

Why we believe in Climate Income

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It works

Solving most of the climate problem

Weighing scales at balance

It's fair

Everyone is treated the same

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It's simple

And transparent

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It's acceptable

To most political parties and allegiances

How it stops Climate Change

By making fossil fuels more expensive as an energy source, companies and industries will buy less and look for cleaner and greener alternatives.

As the carbon price is raised steadily every year, it provides a clear signal about the future costs. Predictable increases give businesses an incentive to reduce pollution and stay competitive. For consumers it’s easier to choose cheaper and greener. Together society reduces pollution and the emission of greenhouse gases.

Graph showing carbon emissions reducing in response to a rising Carbon Price
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How Climate Income affects you

Fossil fuel companies will have to pay a carbon price (or “carbon tax”), which may be passed on to the price of goods and services. To help with those increases you will receive a monthly Income, paid for by the carbon price.

Everyone gets the same Climate Income every month and most low and middle income families will be better off. In 10 years it would be about €150 a month (€1800 a year).

According to studies, an extra income is usually spent on whatever is prioritized, but the carbon price makes the buyer less likely to consume the more expensive, and more harmful, goods and services.

Why EU adoption matters

Society

  • The worry about the climate crisis reduces because everyone can see what is being done and is financially motivated to help.
  • Reduced pollution leads directly to better air quality. Cleaner air saves 1,000’s of lives every year, freeing up health services and saving money.
  • 2 million jobs are created over a 10 year period. Families prioritise food, health, education and leisure amongst other things. These services tend to be in the community so create local jobs.

Industry

  • The price starts low so there is no shock to the economy. There is no sudden need to change and everyone is encouraged to start thinking cleaner and greener.
  • The predictable price means future costs are clear. This makes it easier for businesses to decide on investment and innovation, because there is more certainty.

Government

  • The simplicity means the policy can be implemented inside 12 months, even for small or limited resource countries.
  • The transparency of the policy and the sums of money, make it hard to corrupt.
  • There may be additional savings possible by removing regulations that are no longer required.
  • In countries that have implemented this type of solution, the policy has proved very popular with the public.

How it applies within the EU

It is important that the whole of the EU’s internal market has a more consistent and predictable price for carbon. This delivers something economists call “economic efficiency”. Each country will be responsible for re-distributing the Climate Income, creating a greater incentive in those countries with most pollution.

Europe already has legislation in place that is being updated as part of the EU Green Deal. Our discussions with politicians and legislators have identified how to implement Climate Income within the EU Green Deal. We can also see how public opinion helps to support this becoming a reality.

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Cheerful diverse colleagues smiling and shaking hands after leaving office

How it applies outside the EU

As the carbon price rises, some companies might be tempted to avoid it by moving their fossil fuel based operations outside the EU. This is known as Carbon Leakage. This does not stop carbon emissions, just moves them elsewhere, while reducing jobs and weakening the economy.

To protect the European economy our solution includes a Border Adjustment, also called a Border Carbon Adjustment.

  • Importers have to pay the same carbon price as local companies.
  • Exporters are supported against foreign competitors with cheap fossil fuels.

This maintains a level playing field for international trade. Effectively protecting EU manufacturers and jobs from unfair international competition.

Importantly it encourages other countries to introduce their own Climate Income, helping create a global solution to the climate crisis.