Fossil fuels are the primary cause of climate change. To have any chance of keeping global temperatures at safe levels, we need to keen most remaining fossil fuels in the ground.
In a cap and share system, the 'cap' is a legal limit on fossil fuel extraction which shrinks every year towards zero. Fossil fuel extraction companies would be required to apply for (and pay for) a licence for every tonne of coal, barrel of oil or cubic metre of gas they extract. The amount of available licences would shrink each year (we model shrink rates of 5%, 10% and 15%), so more and more licence applications would be refused. This would gradually force the closure of coal mines and oil wells, starting with the most unethical and polluting sites.
By targeting extraction, the cap would ensure that most fossil fuels never enter the economy, so could not become the source of carbon emissions. This is the simplest and safest way to ensure that carbon emissions drop to safe levels - keeping fossil fuels in the ground.
For more information about how the cap would work, and how the cap and the licence fees could support climate justice, see our full paper 'Climate Justice Without Borders: Cap and share as a mitigation and climate finance solution'.
In a cap and share system, the 'cap' is a legal limit on fossil fuel extraction which shrinks every year towards zero. Fossil fuel extraction companies would be required to apply for (and pay for) a licence for every tonne of coal, barrel of oil or cubic metre of gas they extract. The amount of available licences would shrink each year (we model shrink rates of 5%, 10% and 15%), so more and more licence applications would be refused. This would gradually force the closure of coal mines and oil wells, starting with the most unethical and polluting sites.
By targeting extraction, the cap would ensure that most fossil fuels never enter the economy, so could not become the source of carbon emissions. This is the simplest and safest way to ensure that carbon emissions drop to safe levels - keeping fossil fuels in the ground.
For more information about how the cap would work, and how the cap and the licence fees could support climate justice, see our full paper 'Climate Justice Without Borders: Cap and share as a mitigation and climate finance solution'.