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.
You can find out much more about climate income by reading our extensive analyses and discussions on this web site. You can also see how it supports households across the UK in our report on Carbon Pricing and the Cost of Living Crisis.
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.
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”.
