User:GaiaNorbu

I am using my userpage to stage my first article on Emissions Reduction Currency Systems which is a topic I am passionate about.

Once I have this and subpages worked out I will port the information over into wikipedia proper.

Looking forwards to doing this

Emissions Reduction Currency Systems

Emissions Reduction Currency Systems (ERCS) are schemes that economically reward reductions in greenhouse gas emissions, either through distribution or redistribution of national currency or through the publishing of coupons, rewards points, or local currency.

Emissions Reduction Currency is different from an emissions credit. The value of an emissions credit is determined by a national cap in emissions and the degreee to which the credit confers a right to pollute . The ultimate value of an emissions credit is realised when it is surrendered to avoid punitive fines for emitting.

Emissions Reduction Currency is also different from a voluntary emissions offset which is a payment is made, typically to fund alternative energy or reforestation, the emissions reduction or sequestration resulting from which is used to reduce or cancel the payers responsibility for emissions produced by themselves. The value of an offset is in its being held by the purchaser and applies only for the period and purpose against which the offset applies.

An emissions reduction currency, by contrast, is purely an incentive for behaviour change by individuals or groups. As such the currency creates an additional economic benefit for emissions reductions seperate from the cost imposed by national emissions caps or the voluntary cost assumed by the purchaser of a voluntary offset.

Emissions reduction currencies are not exchangeable within national cap and trade system and as such do not confer any right to pollute.

While no emissions reduction currency system has achieved the scale of emissions crediting systems, there are a number of small scale schemes in operation or being set up. In addition there are a number of approaches that are currently hypothetical being promoted by a number of organisations, academic institutions and think tanks.

Emissions reduction currency systems conceptually are inclusive of carbon currency systems but also include schemes that reduce emission in incidental ways such as through waste reduction and community education.

Categories of Emissions Reduction Currency Systems

Currently envisioned emission reduction currency systems can be categorised into five categories:

Carbon title schemes

Introduction of sustainable land management practices in tropical rainforest and other high carbon environments can lead to abatement of emissions from land clearing that might have otherwise occurred or additional CO2 sequestration.

Land purchased and managed for these purposes can be used to create an independently tradeable carbon right, which may or may not be recognised within an emissions credit scheme. For example, aboveground biomass resulting from land use changes can currently be converted to recognised emissions credits under the Kyoto Protocol Clean Development Mechanism (CDM). Increases in soil carbon for reasons other than reforestation either through changes to land management practices or through the burial of biochar are currently not included in emissions credit systems such as the CDM.

These certificates of legal title can be traded as a form of currency independently of their use as an offset, yielding additional economic benefits. This use is suggested by The Carbon Currency Foundation .

Promotional discount schemes

An emissions reduction currency system based on promotional discount is one where participants are rewarded for reducing their emissions by gaining points which can be redeemed for discounts from businesses advertising in the system.

RecycleBank is one such scheme where participants weigh recycled materials in specially designed disposal bins that identify themselves to weightometers embedded in garbage collection vehicles. Recyclebank is also funded by municipal governments that purchase and operate the required equipment, allowing RecycleBank to operate as a private for profit company.

EarthAid uses specialised software that publishes utility bills from companies in an online format that participants can share with family and friends. Reduced energy consumption earns Reward Points that can be redeemed for prizes at businesses in the EarthAid rewards network.

Allocation schemes

An emissions currency reduction system based on allocation is one where all individual participants are awarded an equal allotment of emissions currency. Participants then trade goods and services with one another to obtain enough of the currency to cover their actual emissions. The objective of an allocation scheme is to obtain social parity between participants with regards to emissions reductions.

Technically an emissions crediting scheme,an allocation scheme is classed as an emissions reduction currency system because the trading of the currency between individuals as parity is sought can create a secondary market of trading where the currency can act as a medium of exchange, and this trading creates an additional positive economic value associated with emissions reductions.

The Global Resource Bank is one organisation advocating such a global allocation scheme.

Emissions rationing schemes

Otherwise known as Personal carbon trading, an emissions reduction currency system based on rationing presumes a standard ration of emissions allowable for an average citizen that incrementally decreases over time.

Participants using less than the rationed amount receive a currency that can be traded with those emitting more than the allowed amount. All participants pledge to in total remain below the average with a net positive value in the scheme.

Carbon Rationing Action Groups (CRAG), started in the United Kingdom, has a global network of groups. CRAG participants use a standard average for the country as a basis for the rationed amount. Participants emitting at above rationed levels must pay those below it in national currency.

Community based currency schemes

A community based emissions reduction currency scheme issues a local currency backed by the emissions reductions of the schemes members. The local currency when accepted for trade by other members or local businesses rewards the participants for their efforts with discounts on goods or services.

The Maia Maia Project , a pilot scheme currently being initiated in Western Australia, is an example of this approach. This scheme, when operational, will have the additional feature of allowing member businesses to donate collected currency (as well as emissions reductions by the businesses and suppliers) to worthy community projects where they can be re-earned by volunteers. In this way the scheme proposes to provide additional support to community social and sustainability initiatives that currently are underfunded.