UK might soon need to consider carbon rationing

If the UK doesn’t make an appreciable dent in carbon emissions over the next three years, the government might have to consider personal carbon “rationing” as a solution, according to a new report from the Institute for Public Policy Research (IPPR).

The report, “Plan B? The prospects for personal carbon trading” argues that a trading scheme is not the best way to reduce carbon emissions, as it is relatively expensive and would be difficult to implement.

Under a personal carbon trading plan, every person in the country would be given an allotment of free “carbon credits,” which would be needed to buy household electricity and gas, petrol and diesel for cars and aeroplane tickets for holidays. Unlike food rations implemented during World War II, however, carbon credits could be traded. That means people with small carbon footprints could sell their spare credits to people with gas guzzlers, large homes and frequent flier habits.

Just as with other cap-and-trade schemes, the number of credits alloted would shrink over time to ensure that emissions reduction targets are met.

“Rationing was introduced in September 1939, to help win the Second World War,” said Matthew Lockwood, associate director at IPPR. “Now the government may need to think about rationing carbon if we are to win the fight against climate change.”

Lockwood added, “Personal carbon rationing and trading should not be a first option. But the government should start preparing a “plan B” in case current policies fail to deliver. We can lay the ground work now by giving people much better information about the carbon they are emitting, whether at home or at the petrol pump.”

The IPPR report estimates that a personal carbon trading scheme could cost about £1.4 billion a year to administer, and would likely also be unpopular. However, it notes, despite the government best efforts to usher in a new low-carbon economy, carbon emissions cuts have not been very successful.

Because of this, the IPPR argues, the government might need to begin preparing the public for a possible personal carbon trading programme. Helpful strategies might include building up citizens’ “carbon literacy” by making  information about carbon emissions available on gas and electricity bills, at the petrol pump and on aeroplane tickets.  The government could also consider running a “know your carbon limits” campaign along the lines of alcohol awareness advertising.