The Citizens Climate Lobby, in the UK and around the World, has traditionally campaigned for a specific form of carbon pricing and revenue recycling. We call it “Climate Income” but it is also called “Carbon Fee and Dividend” or, sometimes, “Carbon Dividends“.
The idea is simple. A tax is applied directly to fossil fuels when they are imported into or extracted within the UK. The resulting revenues are then returned as a fixed dividend to all UK citizens. We believe this to be a uniquely fair, transparent and simple way to implement carbon pricing with revenue recycling.
Such policies are popular with the public when fully explained. For example, 85% of those involved in Scotland’s Climate Assembly were in favour of “a fair, equitable and transparent tax system that drives carbon emission reductions, while recognising different abilities to pay”.
Climate Income policies have been both discussed and implemented around the world over the last few decades. Further details about Climate Income can also be found on our FAQs page.
Climate Income remains CCL-UK’s preferred method for implementing carbon pricing and revenue recycling but we also endorse alternate approaches advocated by other organizations that agree with our general aim of a people-friendly tax on emissions.
