Memorandum submitted by the Royal Society
for the encouragement of Arts, Manufactures and Commerce (RSA)
(CIT 23)
1. RSA CarbonLimited is a project
that aims to explore a number of market-based initiatives to bring
UK carbon emissions down to a sustainable level.
2. Among these, Personal Carbon Trading
could be a powerful vehicle for learning about the climate change
impacts of different behaviours and understanding how to live
with and adapt to environmental change. It would provide choice,
but within a restricted "carbon budget" which stops
us from consuming unsustainable levels of energy.
3. The provision of a personal financial
incentive to reduce our carbon emissions is an attractive one,
because of the potential it has for accelerating change in attitudes
and behaviours at individual and society level and because it
makes use of existing structures and technologies.
4. In a three-year project, the RSA is exploring
the potential for personal carbon trading through research, open
public discourse and the co-ordination of trial schemes and prototypes
operating at local and national level.
5. The RSA believes that a personal carbon
market would mean fresh ideas, opportunities for enterprise, flexibility
and community resilience. There may be hidden dangers such as
the effect of personal aspirations, which currently favour carbon
profligate lifestyles. The RSA is bringing together expertise
from the commercial, social and financial sectors to subject these
ideas to rigorous analysis and make practical policy recommendations.
PROGRAMME AT
AUGUST 2006
The RSA's project on personal carbon trading
currently involves:
— Downstream trading and travel:
A task force is being assembled to make recommendations for a
"personal carbon" approach to transport. Led by David
Quarmby CBE, the group, comprising of commercial operators, economists
and academics will explore the logic of a personal approach and
establish opportunities to pilot ideas in the commercial environment.
— The personal carbon market:
The project is seeking to plug knowledge gaps that would lead
to an understanding of the practical design and operation of a
personal carbon marketplace. Taking DTQs as the starting point,
the research will look at questions such as the specification
of the auction, regulation to prevent gaming and predictions of
market volatility.
— Opportunities for entrepreneurialism
in a personal carbon market: This research will assist in
understanding the competitive advantage that could be achieved
in a personal carbon market and set out predictions for the investment
needs and opportunities.
— Positive incentives for personal
carbon reduction: This strand of work involving Climate Change
Capital and the Climate Change Now campaign is looking to further
the sustainable consumption debate by studying prototype designs
for carbon reduction incentive schemes—which could form
one of the most important precursors to an opt-out or capped marketplace.
— Palatability of personal carbon
policy: The project will map changes in attitudes towards
the idea of personal carbon trading over time. This is beginning
with a simple poll, the results of which will be published in
October. Beyond this, deliberative workshops will be run, some
in conjunction with the Tyndall Centre. Plans are also underway
to provide communities in social housing with carbon credits to
spend as a community on carbon reduction technology, facilitated
through workshops.
— CarbonDAQ: This is the first
mock-up of personal carbon trading online. It promotes understanding
of personal emissions and engages users in discourse about the
efficacy of the policy idea. The trading element is simplified
into a donation scheme for carbon reduction projects generated
by users of the website. Gerry Acher, the RSA's incoming Chairman
will launch this initiative to RSA fellows in October.
— RSA/Tesco Schools Carbon Calculator:
Through the Defra Climate Challenge Fund, a curriculum-linked
carbon calculator is being developed to empower children in reducing
emissions in schools and communities, culminating in a national
competition. Lessons plans will include policy options for reducing
carbon, and look to develop the understanding and skills that
would be needed if personal carbon trading was introduced.
Who will benefit?
6. If the UK can take the lead with a market-based
mechanism to reduce CO2 emissions, it could (a) show global leadership
on climate change, (b) bring forward in time a decline in greenhouse
gas emissions, while (c) gaining commercial advantage through
carbon trading markets and early adoption of clean technologies
that will dominate the future market.
7. Increasing numbers of individuals are
now calling for exemplary solutions to the threat of climate change.
Engagement in trial schemes to test new ideas based around a carbon
allocation will enable the RSA to harness the potential of these
individuals and build a strong public discourse on which consensus
can be built.
Why the RSA?
8. A substantial amount of academic work
has been done on personal carbon trading. The RSA is now developing
the practicalities of these ideas so that they have a reasonable
chance of being implemented. At its base, this means tackling
three areas of difficulty: technological, economic and social/political.
The RSA, with its links to business, government, environmental
organisations and academia, is uniquely placed to address all
of these.
About the RSA
9. The RSA exists to promote social and
economic progress. Because it works with experts from across all
walks of life the RSA can build solutions with long term sustainability
that have wide ranging support. The RSA has a diverse Fellowship
of 25,000 and can reach out to communities world-wide.
10. The RSA's work programme on the environment
has recently included lectures on "Earth in the Balance Sheet"
with The Hon Al Gore, "Carbon Trading", with James Cameron
of Climate Change Capital. The RSA's prestigious Albert and Benjamin
Franklin Medals were recently awarded to Gro Harlem Brundtland,
former Prime Minister of Norway, and Dr Amory Lovins of the Rocky
Mountain Institute for their work on addressing environmental
concerns and sustainable development.
Project website
Holding page: www.theRSA.org/carbon. New site
launch: 17 October 2006: www.rsacarbonlimited.org
Royal Society of Arts
September 2006
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