To ensure a safe, stable climate, we need a dramatic reduction of fossil fuel use and reductions in carbon emissions. In the face of the climate emergency, our methods must also restore biodiversity and ensure the health of land, air, and water in Aotearoa.
Yet 2022 apparently saw record emissions from the use of oil, gas, and coal (final figures yet to be published). 🔥
The Emissions Trading Scheme (ETS) is the cornerstone of New Zealand’s climate mitigation plan. Yet, for political reasons, price-based schemes such as the ETS and carbon taxes simply can’t reliably deliver the explicit reductions now required.
Prices high enough to change behaviour could risk excluding many from essential energy needs. Prices too low will be a waste of time. Only by tackling inputs rather than emissions will we achieve the required outcome with certainty.
In our view, the fairest and simplest way to turn this around is to ration the use of fossil fuels through a method called Tradable Energy Quotas (TEQs). TEQs are a rationing system to ensure a reduction in fossil fuel use and greenhouse gas emissions.
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TEQs would set a weekly energy ration granted equally to everyone driving age and over. Total quotas would be collectively capped to meet our climate goals and will decline each year, ensuring a reduction in emissions.
TEQs would be deducted when purchasing petrol, diesel, coal and fossil fuel-generated electricity. It is equitable and involves everyone in the solution. People with money will still be able to pollute more by purchasing more quotas. But because TEQs will be decreasingly available over time, they will not be able to do this for long.
Government and businesses will be able to buy quotas, the price being set at a weekly tender. The scheme will incentivise everyone to find creative solutions to lower emissions.
The national TEQ price would be determined by national demand. Because of this, it will be in everyone’s interest to reduce our energy demand and to work together, encouraging our sense of common purpose. TEQs do not reduce emissions by increasing price - that is what ETS and Carbon Taxes do. TEQs control emissions directly by controlling the quantity of fossil fuels in the economy. It also makes measuring emissions easier - this can be easily calculated from the emissions equivalent of the annual TEQ amount.
TEQs offer us a sensible and practical way forward to a thriving future. Do we have the courage and compassion to grasp it?
✍🏼 Sign and share our call to investigate the TEQ scheme!
This petition is also hosted on the Parliamentary website.
TEQs are a neat solution proposed by the late David Fleming, a British economist. Find out more at https://www.degrowth.nz/
TEQ References https://www.degrowth.nz/blog/teq
TEQs at a glance https://www.flemingpolicycentre.org.uk/teqs/
