Personal Carbon Trading - Progress Towards Implementation

Progress Towards Implementation

Norfolk Island is trialling the world's first personal carbon trading programme, starting in 2011.

The Climate Change Act 2008 also grants powers allowing the UK Government to introduce a personal carbon trading scheme without further primary legislation.

In May 2008 DEFRA completed a pre-feasibility study into TEQs, with the headline finding that “personal carbon trading has potential to engage individuals in taking action to combat climate change, but is essentially ahead of its time and expected costs for implementation are high”. Based on this DEFRA announced that “the (UK) Government remains interested in the concept of personal carbon trading and, although it will not be continuing its research programme at this stage, it will monitor the wealth of research focusing on this area and may introduce personal carbon trading if the value of carbon savings and cost implications change".

Later that same month the UK Parliament's Environmental Audit Committee produced their report on the subject, which concluded that ”personal carbon trading could be essential in helping to reduce our national carbon footprint" and rebuked the Government for delaying a full feasibility study, stating that "although we commend the Government for its intention to maintain engagement in academic work on the topic, we urge it to undertake a stronger role, leading and shaping debate and coordinating research".

Analysts have noted that to implement any effective carbon rationing system, "the government must convince the public that rationing levels are fair, that the system is administered transparently and fairly, and that evaders are few in number, likely to be detected and liable to stiff penalties if found guilty."

A 2010 paper into attitudes towards personal carbon trading suggests a general ambivalence, however the researchers noted that "In fact, moderate support was the commonest view". A 4-week consumer trial on Personal Carbon Allowances carried out in London in June 2011 reported that "Participants engaged with the personal carbon allowance concept with enthusiasm".

In January 2011, the UK's All Party Parliamentary Group on Peak Oil published a report into TEQs, garnering significant media coverage. This report highlights the significant research from a number of research centres produced since the Government's pre-feasibility study, and argues that these studies demonstrate the benefits of to be far greater than was acknowledged in the Government's research. Accordingly, it urges them to move quickly to fund moves towards potential implementation in the near future.