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Background document L for the 40% House report

INTRODUCTION This paper introduces a new policy idea: personal carbon allowances (PCAs). The primary aim of a PCA scheme would be to deliver guaranteed levels of carbon savings in successive years in an equitable way. PCAs could be used to achieve the government’s current target of 60% reduction by 2050 or other future targets. The way in which this could be achieved is described, as are the benefits of the policy to both individuals and society.